After the increase in home loan rates, auto loans are also following the trend.
“We were offering discounts to the tune of 25-100 bps which we will now stop. As a result, our rack rates will now be between 10.5-11 .75% for a 36-month tenure,” says Ashok Khanna, senior executive vice-president and business head auto loans, HDFC Bank. kotak Mahindra Bank has increased its rack rates, thereby, providing at auto loans at the rate of 11.75-13% followed by ICICI Bank, who have not yet disclosed about their quantum, but are sure to increase their auto loan rates as well.
With the liquidity crunch continuing to throb the market, the financiers are expecting another round of hike in loan rates quite soon.
Now, how will these increases impact your EMIs? Well here is a turnout of the events :
A rise of the basis points of 50bps means an increase of about Rs25 per Lakh in a 36 month tenure of your auto loan. So if you are planning to purchase a Hyundai i10Magna which is of Rs 4.2 Lakh, then your EMI will be increased by Rs75, Rs 60 or Rs90 per month, rounding upto a total increase of Rs2,700, Rs 2,880 and Rs 1.080 for a 3, 4 or 1 year loan duration respectively.
If you have been planning on purchasing a car, try to save as much as you can, in order to reduce the burden off your finances