Bangalore: Customers of home, car and consumer loan might have a tough time as banks are planning to increase the interest rates. It is predicted that the increase could be sharp and quick, according to NDTV.

The slopping rupee against U.S. dollar is considered as the prime reason behind the surge in the interest rates. Indeed, the rupee has hit an historic low at 64 against the U.S. dollar in early trade.

Many private banks have increased their base rates ( rate below which a bank cannot lend) which clearly shows there will be increase in lending rates for home loans, car loans and personal loans.

However, big lenders like State Bank of India and ICICI Bank have not yet announced their increase in the base rate. Private lenders like Axis Bank, HDFC Bank, YES Bank, Kotak Mahindra Bank and Andhra Bank have increased their rates earlier this month.

Just to make things lighter for the customers, ICICI bank recently increase interest rates on fixed deposits from 0.25 to 0.75 percent. But it was found as a clear indication that the bank would increase its base rates.

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