It is a double sided blow for all those who wish to own a car. The steel prices and rising inflation in the country is already coaxing car manufacturers to hike their car prices. While major car manufacturers have already decided to push their car prices, others are planning the same too.
On the other hand, banks are also planning to hike the interest rates for the car loans. ICICI bank has already increased its rates by 75 basis points. It may again raise the rates after the CRR hike. Other banks such as HDFC, Axis bank, Kotak Mahindra, shall also hike their interest rates soon.
According to Kotak Mahindra Prime CEO Sumit Bali, interest rates would firm up. “Last year had been good for financiers, with industry growing by 10-12%. Even with a higher base, this year, the growth is likely to be 8-10%,” he said.
HDFC bank may raise its interest rates by 200 basis points from the next month. However, the final decision shall be made only after the ALCO meet of the bank.
Kotak Mahindra bank has raised its interest rates by 25 basis points in March and now it plans to hike interest rates further. It is estimated that after the hike, gross car loan rates shall fall between 13-15.25%. the net interest rates shall be approximately 11-12%.
