Car sales lenders have raised interest rates have sky rocketed and reached anything between 50 basis points and 100 bps. The rates have touched the double digit mark after a long gap.

All private lenders had affected the hike last week. "The increase differs for every model. For instance, rack rate on loans for a B segment (compact car) will now be 12% while a C segment (sedan) would be charged 11.5% for loans ranging from three to five years. Except for PSU banks, almost all lenders, including Kotak, ICICI and HDFC, have informed us about the hike," a dealer said.

Sumit Bali, CEO of Kotak Car Insurance said, "We have increased loan rates for both new and used cars. Our net rate to customer would range between 10.5% and 11.25%, depending on the tenure and model" he said.