HDFC Bank to increase auto loan rates

Private sector lender HDFC Bank is likely to raise interest rates on auto loans by 0.5% within 7-10 days, a senior bank official said on Friday. "Borrowing rates have gone up — we are likely to raise our rates (auto loans) by 0.5% in the next 7-10 days," HDFC Bank senior executive vice-presidentAshok Khanna said.

Kotak Mahindra Bank, is also feeling the pressure to raise its auto lending rates, one of its senior officials said. "There is pressure to raise our interest rates on vehicle loans, but we have not yet taken a decision on it," Kotak Mahindra Bank's head of consumer banking, K V S Manian, said.

"With deposit rates going up, there is a possibility of a 0.5% hike in auto loan interest rates," he said.