The second largest private sector lender of the country, HDFC Bank has raised interest rates on car loans by as much as 25 to 10 basis points.
The hike has been maximum for loans of three to five years. The interest rates in this segment range between 11.25 per cent for deluxe cars, 11.5-12 per cent for mid segment cars and 12-12.5 per cent for mass segment ones.
"We have raised car loan rates by 25 to 100 basis points with effect from August 20," said a senior HDFC Bank official.
A one year loan would bear interest of 15% for all cars. For tenor of two to three years, a mass segment car would bear interest in the range of 13.25% to 14%. For three to five-year loan, it is 12 to 12.5 per cent and above five years, it is 14.75 per cent.
C-segment cars such as Fiat Linea, Ford Figo Honda City and Hyundai i20 would bear 15% rate of interest for the first year, 13.25 per cent for the two to three-year loan, 11.5 per cent for three to five years and for loan above five years, it will be 14.75 per cent.
ICICI Bank had also raised its interest rates by 50 basis points across various tenures.