Home loan EMIs go up for old customers

EMIS or the same monthly payments on mortgage loans for customers connected to the old test, the primary lending rate (BPLR) went after the two largest private banks - HDFC and ICICI Bank - have increased their rates last week. However, customers who have switched to the new regime is the basic level reprieve as the base rate unchanged at this time.

HDFC, announced an increase in interest rates by 75 basis points, so that HDFC home loans more expensive for existing borrowers. HDFC has raised the main lending rate retail (RPLR) of 0.75 percent with effect from December 1, 2010, the statement said. With this revision RPLR rose from 14.25 percent to 15 percent.

Soon after this, ICICI Bank has decided to increase deposit and lending rates to 0.50 per cent (50 basis points).

The biggest lender in the country's State Bank of India (SBI) on Saturday said that also could raise interest rates on deposits in the same range.

The announcement on the day after the RBI Governor D Subbarao has asked banks to raise deposit rates and lower lending rates, in order to increase national saving, and encourage the necessary investment to double-digit growth.