Following Reserve Bank's hiking of key short term interest rates, one of India's top home loan lenders HDFC has also decided to follow suit by increasing lending rates by 0.50%.

HDFC however has decided to not to change interest rates on deposits. With this hike, the floating rate for home loans will be 9.5 per cent as against the previous 9 per cent, while the new fixed rate will be 11 per cent from 10.5 per cent earlier.

Following this, many banks, including ICICI Bank and State Bank of India, had indicated they would hike their home and auto loan rates.