mumbai home auto and other retail loans will cost up to 075 per cent more with lenders hdfc icici bank and sbi today announcing an increase in interest rates following the reserve bank squeeze on money supplyhdfc will raise its minimum floating rate for home loans by 075 per cent to 11 per cent for new customers from 1025 per cent from tomorrow while the existing customers will have to shell out 050 per cent more at 1075 per centthe new fixed rate would be 14 per cent up 075 per cent icici bank increased its benchmark floating rate for retail customers including home loan borrowers by 075 per cent to 1350 per cent from todayfor existing floating rate customers the increase will be effective from tomorrow the bank saidthe existing fixed rate customers whose loans are fully disbursed will however not be impacted by the increase and they will have to pay the prevailing rateicici bank has also announced increase in benchmark rate for corporate by 075 per cent to 1650 per centhdfc bank also increased its deposit rates by 050 per cent across most maturities while icici bank raised interest rates on fixed deposits of less than rs 15 lakh by 0501 per cent with effect from tomorrowthe announcement by two banks came close on the heels of similar announcement by the largest lender sbiin ghaziabad this morning sbi chairman o p bhatt said interest rates on all loans linked to prime lending rate will rise by 050 per cent these include housing and auto loansother banks like pnb bank of india and vijaya bank too have already announced an increase in their prime lending rates following tighter monetary stance by rbi to tame double digit inflationhdfc attributed the rise in loan rates to liquidity crunchthis is in line with the rates of interest in the economy which have hardened due to rising inflation and shrinking liquidity in the domestic market a statement by the lender saidcontinuing its fight against inflation which has now touched 1142 per cent for the second week of june rbi had raised the short term lending rate to banks repo and mandatory cash reserve of banks with the central bank crr by 50 basis points each putting pressure on interest ratesthe rbi had already raised repo rate by 025 per cent earlier this month besides it had raised crr by 075 per cent in three phasesbankers expect the central bank to further tighten money supply in its quarterly review of credit policy slated for july 29