Whenever a bright and colourful car passes you by, often the word 'Wow' comes out of your mouth, isn't it folks. From then, the urge to own such a car becomes ever so strong. Since the cost of owning a car comes in the region of lakhs to crores, it may not be easy for the majority of the population to buy it without taking a loan. So, the hunt begins for a right lender with customized car loan offers.
ICICI Bank can just be the find you are looking for. Being the second largest bank in terms of assets, ICICI Bank is a renowned name in the field of banking and financial services such as life insurance, asset management, etc. It is the fourth largest player in car finance segment with a share of 14% as per the latest data. With attractive interest rates and flexible repayment options, ICICI Bank fits the bill of a car financing company that you would look for in a lender. So, without any delay, let's explore ICICI Bank car loan.
|Interest Rate||10.75%-12.75% p.a. (Monthly Reducing Balance) (for new cars)
15.50% p.a. (Monthly Reducing Balance) (for used cars)
|Loan Tenure||1-7 years for new cars
1-5 years for used cars
|Processing Fee||2% of the loan amount or ₹ 6,000, whichever is lower|
|Pre-payment Charges||No prepayment allowed before 6 months of loan disbursement
3% of the principal outstanding with loan seasoning period of 7-over 24 months
|Guarantor||No need of a guarantor|
ICICI Bank comes with a host of benefits for car loan seekers. Want to know the benefits? Take a look at the points below.
Loan upto 100% of Ex-showroom Price- ICICI Bank offers a loan of upto 100% of the ex-showroom price when it comes to buying a new car. While the loan offer for used cars amounts to 80% of the valuation amount as assessed by the officer in charge of the duty. Given such impressive quantum of finance, ICICI Bank is the lender you should go with in your quest of realizing the car dream.
Simple Documentation & Instant Loan Approval- The car loan documentation process at ICICI Bank is extremely simple. The approval to a car loan can be given instantly online. All these make for a seamless car loan experience at ICICI Bank.
Fixed Interest Rates- With fixed rates, the rate of interest remains the same throughout the loan tenure and so as the amount of EMI. When you know the fixed amount of EMI to be paid over the loan term, you can easily budget your expenditure and enjoy a hassle-free car loan experience. ICICI Bank is just that medium to avail the same due to its fixed rate regime.
Extended Loan Tenure- You have a plenty of time to pay off the loan availed from ICICI Bank to buy a car as the repayment tenure can go to as long as 7 years for new cars. While for older cars, you have a time of upto 5 years to pay off the loan.
Pan-India Presence- Though it may not add anything to the car loan offer, but a bank with an extensive presence should always be given the preference while taking a loan. If you talk about ICICI Bank, it operates with approximately 5,000 branches and over 14,000 ATMs across the country. Not only it has a wide presence in India, but also operates from 18 other countries, including the likes of the US, the UK, Canada.
ICICI Bank has set certain eligibility criteria for both salaried and self-employed to avail a car loan. Below is the table of eligibility criteria to glance at.
|Age||25-58 years||28-65 years|
|Income||A minimum annual gross salary of ₹ 2.5 lakhs is required||Gross annual income should be atleast ₹ 2 lakhs|
|Job/Business Status||Overall work experience should be atleast 2 years, with a year at the present employer||Must be in the business for atleast 3 years|
With a car loan comes the down payment, which you have to make while buying a car from the dealer at the showroom. More you have a hang of the loan amount you can get from the bank, more will be the ease in making the down payment. You can know the eligible loan amount if you use the car loan eligibility calculator of ICICI Bank. The calculator is easy-to-operate and derives the value of expected loan amount on your eligibility. Initially, the calculator will ascertain per lakh EMI based on the interest rate and maximum loan tenure. Look below to find a calculation of the same.
Loan Amount- ₹1,00,000
Interest Rate- 10.75%-12.75% p.a.
Tenure- 7 Years
Per Lakh EMI- ₹1,699-1,806
Followed by the calculation of per lakh EMI, the calculator will ascertain the indicative loan amount based on your savings. For example- You work in an XYZ firm at a salary of say, ₹ 42,000 per month and you save upto ₹ 18,000. The calculator will compute the loan amount based on the formula stated below.
Loan amount eligibility
- ₹ 1,00,000 x savings/per lakh EMI
- ₹ 1,00,000 x 18,000/1,699= ₹ 10.59 lakhs (Approx.)
- ₹ 1,00,000 x 18,000/1,806= ₹ 9.96 lakhs (Approx.)
Thus, the expected loan amount will be approximately ₹ 9.96 lakhs-10.59 lakhs. With this loan amount, you have a choice to make from an exhaustive list of car models, involving the big names of Maruti Suzuki Swift, Maruti Suzuki New Swift Dzire, Honda Jazz, Ford Ecosport, Mahindra TUV300, among others.
Equated monthly installments (EMIs) are a sum of principal and interest amount payable from your pocket each month until the loan is paid off fully. It is important to know the EMI amount in advance as it will help you budget effectively for a smooth repayment of your car loan. If you availed a car loan of say ₹ 7.5 lakhs and want to know the EMI, check the table below to find the same.
|Loan Amount (In ₹)||Tenure (In Years)||Interest Rate (In % p.a.)||EMI (In ₹)||Total Interest (In ₹)||Total Payment (Principal+Interest) (In ₹)|
|Age Proof||PAN Card/Passport/Voter ID, School or College Leaving Certificate||PAN Card/Passport/Voter ID, School or College Leaving Certificate|
|Identity Proof||Driving License/Voter ID, Passport/PAN Card||Driving License/Voter ID, Passport/PAN Card|
|Address Proof||Passport/Voter ID/Electricity Bill/Telephone Bill/Insurance Policy||Passport/Voter ID/Electricity Bill/Telephone Bill/Insurance Policy|
|Income Proof||Latest Salary Slip, Form 16||Income Tax Return along with Audited Profit & Loss A/C Statement and Balance Sheet of Last 2 Years|
|Other Proofs||Employment Stability Proof||Business Stability Proof|
|Duly Signed and Filled-in Application Form||Applicable||Applicable|
When it comes to applying for a car loan at ICICI Bank, you can choose from the following options- Online application, online application & a call from the bank executive at your preferred time, SMS to 5676766 and a visit to the designated branches of the lender. You need to fill in the application form with accuracy and submit the same along with relevant documents for the smooth processing of your loan application. Subsequent to the successful investigation, ICICI Bank will disburse you a car loan.
The moment you are done with the submission of your car loan application, the next thing you should focus on is the monitoring of the application status. It is possible that the loan disbursal can get delayed in your case. And if you are unaware of the same, things can so easily go out of your hand. So, keep a track of the application status. You can do it online by visiting the official website of the bank or by going to the nearest branches of the lender. You would be intimated of the stage at which your loan application is lying, in addition to an indication of the expected disbursal time of the loan.
During the period of a car loan, it is vital you go through the statements of the same on a regular basis. The statement shows the repayment record of EMIs, involving the break-up of principal and interest amount. In addition, you also get to know the outstanding balance at various tenures of the loan. Any late payment charges, if deducted, will also be shown on the statement. Now the question arises as to how will you access the statement. This can be done by visiting the branch and submitting a request for the same.
Feel free to get all your queries and grievances resolved by calling to the 24x7 toll-free number-18001024242. The customer care executives of the bank will be more than happy to resolve queries, be it on the loan disbursal, repayment, fees & charges or any other thing associated with a car loan.