SBI ups loan rates, ICICI follows

According to a news report by Indian Express, less than 3 days after Finance Minister Pranab Mukherjee expressed his confidence that pursuant to RBI's tight Monetary policy , banks would not raise their interest rates,the country's top bank State Bank of India has raised its prime lending rate by 50 basis points to 12.25 per cent. Not to be left behind, the number 2 and the largest in the private sector, ICICI Bank also increased its prime lending rates by 50 basis points.

What is the effect of these hikes on us – nothing but get ready to shell out more on loan repayments.