It has been decided by most banks that interest rates on car loans will be raised only after April. The only lender not to have followed this decision is HDFC Bank which has increased interest rates on all loan products.

With another review of monetary policy nearing this thursday, it is expected that policy rates would see yet another rise. Banks are awaiting the central bank's move following which they will raise lending as well as deposit rates.

"Considering the macroeconomic situation, the Reserve Bank of India is under pressure and it is highly likely that they hike the interest rates. So in the short term, interest rates on auto loans will go up. But I don't see any hikes by lenders until April," said Jairam Sridharan, head, consumer lending, Axis Bank said.

"Even if Reserve Bank of India hikes the rates I do not foresee any rate hikes by most players this month. March is a big month for companies to meet targets and increase sales volume. So we will wait till April to see RBI's move and also the additional spending by the government, before hiking rates," said Sumit Bali, CEO, Kotak Mahindra Prime.