A week after the Reserve Bank raised key policy rate, private sector ING Vysya Bank hiked lending rate by 25 basis points.
With the increase, base rate or the minimum lending rate will be 9.70 per cent against 9.45 per cent earlier, ING Vysya Bank said in a statement.
“The revised rate shall apply to all existing loans which are linked to base rate, effective June 21,” it said. Following this new housing, auto and other loans would become costlier.
At the same time, the bank has also raised the Benchmark Prime Lending Rate by 25 basis points to 18.25 per cent.
Other banks are also likely to announce revision in either deposit or lending rate in response to last week’s RBI rate hike resulting in increase in cost of funds.
The RBI hiked key short-term lending and borrowing rates by 25 basis points (0.25 per cent) each with immediate effect to tackle inflation. The short-term lending rate now stands at 7.5 per cent and the borrowing rate at 6.5 per cent.