Click to play videoNew Delhi: There is more bad news on the home loan front.
The Reserve Bank of India has hiked the Cash Reserve Ratio (CRR) by 50 basis points.
The hike will take place in two stages - 5.75 per cent from February 17 and to 6 per cent from March 3.
The move will reduce funds available with the banks and will reportedly drain out Rs 14,000 crore from the banking system in order to contain inflation.
ICICI Bank - one of the two biggest home loan providers in the country - has said that it will hike home loan rates again because of the CRR hike.
Just last week, ICICI hiked home loan rates by a full percentage to 10.5 per cent.
The hike came into effect from February 9, which means that now for a Rs 25 lakh loan over a 20 year period, one will have will pay Rs 1,656 more as EMI.
The bank also raised the prime lending rate for corporate loans by 1 per cent to 14.75 per cent.
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