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Car Loan

ICICI Bank Profile


ICICI Bank was incorporated by the Industrial Credit and Investment Corporation of India (ICICI), in 1994. The company came into being in the year 1955 as a joint-venture between the World Bank, India's public-sector banks and public-sector insurance companies. With a network of 2,791 branches and 10,021 ATMs in India, ICICI Bank is India's second-largest bank. Headquartered in Mumbai, with its registered office in Vadodara (Maharashtra, India) ICICI Bank (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company, offering multiple financial products. ICICI Bank is among the Big Four banks of India. The bank has subsidiaries in the UK and Canada; branches in United States, Bahrain, Singapore, Hong Kong, Sri Lanka, Qatar, Oman, Dubai, China and South Africa; and representative offices in UAE, Malaysia, Bangladesh, and Indonesia. ICICI Bank initiated Go Green movement to make environment healthy by introducing cost effective automated channels to build awareness and consciousness of the environment.


One of the green products of ICICI bank is Vehicle finance, as per which 50% waiver on processing fee is provided on car models which uses alternate mode of energy such as models fitted with CNG fuel option. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Hyundai's Santro Eco, Honda Civic Hybrid, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.

Range of ICICI Bank Car Loan Products

ICICI Bank can disburse car loans for buying both a new car and a pre-owned car, and are rated as one the best car loans in India. The loan disbursals, loan quantum, tenure and interest rate of the ICICI car loan vary as per the type of the car you choose to purchase.


ICICI Bank New Car Loan


A new car loan from ICICI Bank can be taken to purchase a new car. ICICI bank loan for a new car has the following salient features:
 

  • Finance of up to 100% of ex-showroom price of the car
  • Repayment tenures of up to 7 years
  • Competitive interest rates
  • Easy documentation
  • Insurance cover for Loan Liability available, repayable along with EMI

ICICI Bank Pre-owned Car Loan


Used car loan or pre-owned car loan can be availed to purchase a second- hand car. ICICI Bank used car loan comes with the following salient features:
 

  • Finance for pre-owned cars up to 80% of the valuation of the car
  • Attractive interest rates
  • Repayment tenures up to 5 years
  • Car loans for a wide range of certified/pre-owned cars

Car Loans offered by ICICI Bank for existing ICICI bank account customers


ICICI plans offer pre-approved car loans to select customers of the Bank. This car loan scheme offers many benefits to the existing customers of ICICI Bank.
 

  • Exclusive offers
  • Instant approval
  • Reduced documentation.

ICICI Bank Top up Loan on Existing Car Loan


To help borrowers of ICICI car loan to fulfill their requirements like home renovation, business funding, education of children, holiday expenses, ICIC Bank offers Top Up loan on existing ICICI car loan. As the applicant will be an existing customer of ICICI Bank, he can enjoy the benefit of minimal documentation and faster processing of the ICICI Bank car loan. Moreover, ICICI car loan details educate you about everything that you need to know before the actual loan application procedure.

Features of ICICI Bank Car Loan

ICICI Bank car loan can be availed in a quicker time with instant approvals. ICICI Bank offers car loans for both new and used cars at competitive interest rates. Cut the queue and apply for an ICICI car loan online at PaisaBazaar.com and get an instant e-approval within minutes of the car loan application. Existing ICICI bank customers have an edge over others for car loans as they can enjoy the benefit of minimal documentation. Car loan from ICICI bank offers finance up to 100% ex-showroom price of the car. ICICI car loans can be availed at low interest rates having long repayment tenure of up to 7 years. In short, ICICI Bank car loan is one of the most feature-rich car finance plans in the country.


List of features of ICICI Bank Car loan includes:
 

  • Minimum income required to get ICICI Bank Car Loan is Rs. 16,700 per month.
  • ICICI Bank sanctions up to 100% of the ex-showroom price of a new car and 80% of the ex-showroom value of a used car as loan amount.
  • If applicant has other pre-existing loan liabilities, then it lowers his car loan amount eligibility.
  • ICICI Bank car loans can be availed for tenure of up to 7 years for a new car and up to 5 years for a pre-owned car.

Eligibility Criteria for ICICI Bank Car Loan

There are certain eligibility norms to sanction ICICI Bank car loan. These norms depend upon:
 

  • Income/salary
  • Price of Car
  • Previous loan liabilities

Depending upon these norms, the eligibility criteria that have been set up for ICICI Bank car loan is:
 

  • Applicant must be of at least 23 years of age
  • Applicant should be less than 70 years of age
  • Applicant has to be salaried of self-employed with regular income
  • Applicant must earn more than minimum monthly income required.

Check your eligibility for ICICI car loan


Before you apply for an ICICI bank car loan, you must check your eligibility to ensure that you fulfill all the eligibility criteria of the bank. Checking the eligibility requirements for ICICI car loan beforehand saves you from the hassles of going to the bank branch again and again. ICICI car loan eligibility can be checked online on ICICI Bank website or other financial websites. You can find an eligibility calculator on PaisaBazaar’s website, using which you can calculate your eligibility online.


It is always better to check whether you are eligible for an ICICI bank car loan or not before applying for the car loan as it saves you from loan refusal. Once you check your eligibility, you know the eligibility criteria you will need to fulfill to avail a car loan. Therefore, you can take measures to complete your eligibility criteria so that your car loan does not get turned down.


PaisaBazaar’s Car Loan Eligibility Calculator


PaisaBazaar’s Car Loan Eligibility Calculator is an online tool which requires a few inputs from the loan applicant, such as his income, employment type, employment experience, loan amount, car model and other things. When the applicant enters all the required details, the eligibility calculator checks his eligibility and based upon his car loan amount eligibility and requirements, the calculator displays a list of car loans. These car loans are displayed in tabulated form with their benefits and features. You can compare the car loans against their features and then choose the loan which meets your requirements in the best manner. You can also apply for a car loan online on PaisaBazaar’s website.

Interest Rates and Margin

Every bank applies an interest on the lent amount at a certain rate. This rate at which interest is applied can either be fixed or floating in type. The rate of interest is applied on the amount of the loan. ICICI bank car loan interest rates are of the fixed type. Fixed interest rate means that the car loan interest rates will remain unchanged for the entire tenure for a car loan, and will not be affected by the market fluctuations. In case of fixed interest rate loans, the loan EMIs that are paid out every month remain the same as the rate of interest does not change.


ICICI Bank offers new car loans with fixed interest rate based on the tenure of the loan and car segment. It offers 12.75% interest for a period of up to 23 months; 12.25% for up to 24-35 months; and 10.75% for up to 36-84%.  


For User Car, ICICI bank charges interest rate based on age and segment of car, and product variant like top up, refinance etc. Broadly, it charges approx. 15.50% interest on loan provided for buying used cars.


Car Loan Interest Rates


Car loan provided by ICICI Bank comes with fixed interest rate. The car loan interest rates on car loans are based on to the car type you choose:
 

  1. New Car loan: The rate of interest applicable an ICICI Bank car loan for a new car is based on factors such as customer relationship, car segment and tenure of loan etc.
  2. User Car loan: The rate of interest applicable on a used car loan is based upon age and segment of car, tenure of loan and product variant like top up, refinance etc.

Table: ICICI Bank Car Loan Interest rates*
 

Tenure of credit facility

Up to 23 months

24-35 months   

36-84 months

Type of credit facility

Rate of interest

New Car Loans

12.75%

12.25%

10.75%

Used Car Loans

15.50%

*The rates are indicative and subject to periodic change.


It is ideal to keep yourself updated about these interest rates prior to applying for the ICICI Bank Car Loan.


Key factors affecting ICICI car loan interest rate:
 

  • Credit history

    Whatever loan you apply for, your credit history is an important factor which decides the interest rate that will be applicable on your loan. Credit history or CIBIL score of an individual is his financial record which emphasizes on the past loans, credit card bills and their repayments. If you pay your EMIs and credit card bills on time, then you will be having a good credit score which can help you get a good rate of interest on the loan you borrow. But, if you default in your EMI or credit card bill payments, then your credit score might get affected. If you have a good credit score, then the bank might offer you a loan at a lower interest rate, whereas if your credit score is low you might get a loan at a higher interest rate, or you may even stand the risk of getting your loan application rejected. Therefore, it is very important to keep paying your bills and loan EMIs on time so that your credit score is not affected.
     
  • Income group

    If you belong to a higher income group and are drawing a good salary every month, the bank will have more confidence in your capability to ensure monthly car loan repayments. In such a case, the bank might offer you better deals on car loans at a lower rate of interest than a person who is not earning that well.
     
  • Customer Relationship

    The bank and customer relationship is also a major deciding factor for the loan interest rates. If you are an existing customer of the bank and are having a good amount of investments with the bank, then you are counted within the privileged or loyal customers of the bank. A privileged bank customer may be offered a loan at an interest rate which is better than the one offered to a non-customer.
     
  • Amount of down payment

    If you make a high down payment, then the amount lent by the bank will be lower thereby lowering the risk of the bank. The bank will consider that you are in a good financial position and will repay the loan in time. As a result, the bank may offer you a loan at a lower interest rate.
     
  • Tenure of the ICICI Bank car loan

    The tenure of the ICICI Bank car loan varies according to the type of car loan you choose, i.e. new car loan or pre-owned car loan. New Car loans are generally offered for tenure of up to 7 years. It is generally seen that banks charge higher interest rates for loans of shorter duration and lower interest rates on loans for longer duration. For example, ICICI Bank charges interest at the rate of 12.75% p.a. for a loan of up to 23 months while it charges 12.25% p.a. for a loan tenure of 24–35 months. It can be seen here that as the loan tenure increases, the rate of interest goes down. And when the tenure increases further from 36 months to 84 months, the interest reduces to 10.75% p.a.
     
  • Car model

    For an ICICI Bank car loan, the vehicle for which the loan is taken is taken as collateral and must be hypothecated to the bank for the loan tenure. If the borrower defaults on loan repayment, the bank will seize the car and sell it in order to meet the incurred loss. Therefore, the bank considers the model of the car in determining the interest rate because when sold, every model will not fetch the expected price. Car models which are popular usually fetch higher resale value as compared to the less popular car models.
     
  • Age of the car

    Age of car is also taken into consideration while deciding the interest rate on the ICICI Bank car loan. If you take a used car loan, the percentage of risk increases on the part of the bank. That is the reason every bank has set a maximum age in case of a used car. The rate of interest in case of a used car loan is also relatively higher compared to that of a new car loan. The interest rate offered by ICICI Bank on pre-owned car loan is 15.50% p.a. while new car loan is available at the rate of 10.75% to 12.75% p.a.

ICICI Bank Documentation

The applicant needs to submit the following documents for ICICI car loan:
 

1. Signed and completely filled ICICI car loan application form with photograph

2. Proof of address

3. Proof of identity and age

4. Proof of income (Salary slip/ITR)


The documents for ICICI car loan vary in case of salaried, self-employed and Self-employed Non-professionals. The applicant can submit the documents according to the employment type he belongs to.


Salaried applicants need to submit the following documents for ICICI Bank car loan
 

  • Duly filled and signed application form with photograph
  • KYC Documents: Identity Proof, Address Proof & Age Proof                                                              
  • Bank Statements                                                   
  • Verification of Signature                                     
  • Proof of Income: Latest Salary Slip or Form 16
  • Proof of stability in job

Self-employed Professional need to submit the following documents for ICICI Bank car loan.
 

  • Duly filled and signed application form with photograph
  • KYC Documents: Identity Proof, Address Proof & Age Proof                                                              
  • Bank Statements                                                   
  • Verification of Signature
  • Proof of Income: Income Tax Returns of 2 previous financial years
  • Proof of stability in business or ownership proof                     

Self-employed Non-professionals need to submit the following documents for ICICI Bank car loan.
 

  • Duly filled and signed application form with photograph
  • KYC Documents: Identity Proof, Address Proof & Age Proof                                                              
  • Bank Statements                                                   
  • Verification of Signature                                                     
  • Proof of Income: Income Tax returns of 2 previous financial years along with complete financial/audit report.
  • Proof of stability in business or ownership proof
  • Partnership deed and Letter signed by all partners authorizing one partner                                                              

Companies and Societies: Resolution by Board of Directors and Memorandum and Articles of Association.

ICICI Bank Car Loan EMI Calculator

Car loan EMI calculator lets you calculate your car loan EMI in an instant. You need to enter a few inputs regarding your car loan, such as the loan amount, tenure and interest rate. Buying a car requires a huge investment which can be met through a car loan. But, before you decide to take a car loan, you need to understand your repayment capabilities. You must ascertain the amount which you can comfortably pay back each month without straining yourself financially. Further, the amount you borrow has to be repaid back with interest within a stipulated time-period. In case you default on the EMI payments of your car, the lender can seize the car and sell it to make up for the loss. Therefore, to save yourself from these hassles it is always best to calculate your car loan EMI before availing car loan. Car loan EMI calculator is an online calculator which can be used to calculate car loan EMI. You can also experiment with the Car loan EMI calculator to reach an EMI which you are comfortable paying back each month towards your car loan.


Calculate EMI for ICICI Bank car loans using the ICICI car loan EMI calculator available on PaisaBazaar's.


How the car loan EMI calculator works:


The calculator work on the following loan parameters to determine the loan EMI:
 

  • Loan amount

The amount borrowed as loan for purchasing a car is the loan amount for the car loan. The sanctioned loan amount is decided by the cost of the car and the income of the loan applicant.
 

  • Duration of the loan

It is the tenure given for repayment of the loan. ICICI Bank car loans have repayment tenure of up to 7 years for new car loans and up to 5 years for used car loans.
 

  • Interest Rate

The rate at which interest charged on the lent amount is the interest rate. ICICI Bank levies fixed rate of     interest on car loans. The interest rate varies for new and used car loans. The interest rate is higher in case of used cars and lower for new cars.

 

ICICI Bank Car Loan FAQs

 

Q: What are the loan tenure options offered by ICICI bank?


A. The tenure of the loan offered by ICICI Bank varies between one to seven years for new car and  for pre used car it is up to five years.


Q: How is interest charged by the bank?


A. Bank charges interest on monthly reducing balance basis.


Q: Does ICICI Bank offers options of loan prepayment?


A. Yes, with the processing fee of 5% on the outstanding principle, a borrower can pre pay the existing loan amount.


Q. Can I have a car loan co-applicant?


A. Yes, a blood relative staying in the same residence or your spouse can be co-applicants for an ICICI Bank car loan.

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