HDFC Bank, the second largest private sector lender, has revised car loan rates by 25 to 100 basis points in various maturities effective from August 20.

The rate hike has been the steepest in the three to five year category of loans, the most popular car loan category where the rates 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. Earlier, the bank had a rate that ranged from 10.5 to 11 per cent.

“We have raised car loan rates by 25 to 100 basis points with effect from August 20,” said a senior HDFC Bank official.

A detailed questionnaire send to HDFC Bank failed to elicit any response.

In the new rate structure, loans for the mass segment cars are pricier than other categories. While a one-year loan would cost 15 per cent interest for all categories of cars, the rates go up for the mass segment cars in the remaining maturities. For a two to three-year loan for a mass segment car, the rate is 13.25 to 14 per cent, for three to five-year loan, it is 12 to 12.5 per cent and above five years, it is 14.75 per cent.

For C-segment cars such as Fiat Linea, Ford Figo Honda City and Hyundai i20, the rate of interest is 15 per cent 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.

In the C-plus category, which includes the top-end luxury cars, the rate of interest varies from 15 per cent for the loans of one to two years, 13 per cent for two to three years, 11.25 per cent for three to five years, and above five years, it is 14.75 per cent.

About a fortnight back, ICICI Bank had also raised its interest rates by 50 basis points across various tenures. In the three to five year category, the interest rate ranges between 10.25 to 11.25 per cent. The one-year car loan rate of the bank is 14.25 per cent and above two years is 12.25 per cent.

But the bank has a special rate of 9.5 per cent for high-end cars such as Mercedes, Audi and the imported cars where the average loan is Rs 25 lakh and the tenure is three to five years.

manjuab

@mydigitalfc.com