So, finally we can say there was a lot of truth in the rumors that did the rounds early this year. Come budget declarations and most were expecting auto and home loan rates to increase simply because it’s what makes financial sense.

Keeping this in mind, most Indian auto manufacturers’ gave potential customers the opportunity to buy cars at cheaper rates in the initial period of 2010.

So if it’s a car you’re about to buy, keep in mind that ICICI, Kotak and HDFC have taken a decision to increase auto loan rates. With immediate effect, ICICI has opted for a 50-basis point increase and HDFC Bank by 50 to 100 basis points.