Home loans getting costlier due to record inflation

by Nikhil Khanna July 04, 2008 India is suffering from record high inflation. Inflation in India soars to a record 13 - years high of 11.63 per cent for the week ended June 21, 2008. To control inflation The Reserve Bank of India on June 24 implemented a 0.5 per cent hike in its short term lending rate to banks and also a 0.5 per cent hike in cash reserve ratio. The leader in private sector banks "ICICI Bank "had increased home loans rate by 0.75 per cent. HDFC the another large private sector player also increased its home loans rate by 0.75 per cent. Now India's largest bank "State Bank of India" has increased its floating home loan rate by 0.5 per cent. The hike in interest rate is with effect from June 27, 2008. Previously the interest rate was 10.50 per cent and the new rate w.e.f June 27, 2008 is 11 per cent. State Bank... [read full story]