If you wish to buy a new car, you can easily make the purchase by heading to the closest branch of ICICI bank, which is one of the biggest private sector banks in India, to file an application for a new car loan scheme. Currently, ICICI Bank charges a minimum interest rate of 9.30% per annum for new car loan, and you can get a car loan for a maximum tenure of 7 years.
|Features||New Car Loan||Used Car Loan|
|Processing Fee||Min – Rs. 2,500 |
Max – Rs. 5,000
|2.00%, a minimum of Rs. 2,500 and a maximum of Rs. 6,000|
|Loan Tenure||Upto 7 years||Upto 5 years|
|Lowest EMI||₹ 1,624 per lakh||₹ 2,090 per lakh|
|Loan Amount||Up to 100% of ex-showroom price||Up to 80% of market value|
The ICICI bank car loan interest rate depends on a handful of factors, which includes the loan amount, the earning of a borrower as well as his employment category, loan tenure and his repayment capacity that is determined from CIBIL score-
|Loan amount||Higher the loan amount, lower will be the interest rate. ICICI Bank provides a loan of 100% ex-showroom price of the car|
|Your Salary||Those falling in higher salary brackets get loans at lower interest rates. Car Loan interest rate ICICI varies with your net monthly income.|
|Employer Category||The borrower’s employer category is a huge deciding factor to finalize the rate of interest he has to pay. Like other banks, even ICICI Bank has a list of company categories of salaried individuals to which they offer car loans at more attractive interest rates.|
|Relationship with the Bank||Those who are existing customers of ICICI Bank and have a good reputation in the eyes of the bank are offered car loans at special rates. Basically, account holders who have managed their accounts properly and have made all payments on time get car loans at a lower interest rate.|
|Loan Tenure||ICICI Bank offers new car loans with a loan period of 7 years.|
|Repayment Capacity||As is the case with all banks, even ICICI bank checks the repayment capacity through the CIBIL score of an individual.|
All banks have almost standard criteria for determining the eligibility of a loan applicant. These include the age of the borrower, his or her minimum annual income, credit score, loan tenure and the loan to value ration. The table that we have below charts out the eligibility criteria for getting ICICI Bank car loan.
|Eligibility Criteria||Eligibility Details|
|Age||18 years – 65 years|
|Minimum Annual Income||Salaried: ₹ 2.50 Lakhs |
Self Employed Professionals: ₹ 2 Lakhs
Self Employed Businessmen: ₹ 2 Lakhs
|Minimum Credit Score||700 and above|
|Loan Tenure||7 years|
|Loan to Value Ratio||100% of ex-showroom price|
The factors that affect the eligibility of an applicant of an ICICI Bank car loan include –
ICICI Bank Car Loan EMI is the sum of money you have to pay to the bank on a pre-decided date every month in order to repay your loan in instalments.
|Factors Determining EMI|
|Rate of interest||Simply speaking, higher the rate of interest of the ICICI Bank car loan, higher will be the EMI you will need to pay back every month.|
|Loan tenure||Higher the loan tenure lower will be the EMI|
|Loan Amount||Higher the loan amount, higher will be the EMI|
After getting to know the ICICI Bank car loan interest rate at which you’ll get the new car loan, you can easily figure out the EMI you need to pay through the free ICICI Bank car loan EMI Calculator. To use an EMI calculator, one needs to just fill in the loan amount, the rate of interest and the loan tenure and he can immediately get to know the EMI he will have to pay every month. All the EMI calculators work on a standard principle equation –
E= P. r. (1+r)n/[(1+r) n -1]
P is the principal amount (loan amount)
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the tenure of loan in months
E represents the monthly payment or EMI
All banks have some standard charges on a loan. These include foreclosure charges and processing fee. Most banks charge a foreclosure penalty in case you need to repay your loan early, be it in part of full. Similarly, most banks charge a processing fee when issuing your loan. The ICICI Bank auto loan fee and charges have been given below –
|Foreclosure Charges||These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. ICICI Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment 5%.|
|Processing Fee||ICICI Bank asks for a processing fee of Min. Rs. 2500 and Max. ₹ 5,000 with applicable service tax.|
You can transfer your ICICI Bank car loan balance from another bank. However, the availability of this feature depends on your eligibility and so, you should visit the nearest ICICI branch and check your eligibility. Once it’s for sure that you can initiate the transfer process, you can start the paperwork.
You can top up the car loan once you’ve checked your eligibility for doing so. You can check this at any ICICI branch that has a car loan department.
One needs to submit a set of documents to the ICICI Bank when applying for a car loan. These documents vary between salaried employees and self-employed professionals. The table we have below lists out the documents one needs to provide based on his employment category.
|Types of Employee||Documents|
|Salaried Employees||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PAN, Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN/Quotation of car/Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
|Self-Employed||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PANIdentity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PANQuotation of carResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
The ICICI Bank car loan interest rate is based on many factors. The ICICI Bank car loan interest rates for both new car loans range from as low as 9.3 per cent per annum. Below, we have a list of factors that determine the interest rate at which you get the car loan:
|Factors Determining ICICI Bank Car Loan Interest Rate|
|Loan amount||Higher the loan amount, lower will be the rate of interest.|
|Your Salary||Higher the salary, lower will be the rate of interest at which you’ll get a car loan.|
|Employer Category||The borrower’s employer category plays a huge role in deciding the ICICI Bank car loan interest rate. Those working in companies recognized by the ICICI Bank tend to get new car loans at a relatively lower interest rate.|
|Relationship with the Bank||You can benefit from a special rate of interest for ICICI Bank new car loan in case you are an existing account holder of the ICICI bank and enjoy a good reputation in the eyes of the banker.|
|Loan Tenure||ICICI Bank offers a loan tenure of up to 7 years.|
|Repayment Capacity||The ICICI Bank car loan interest rate is also decided as per the CIBIL score of the borrower.|
A: Currently, ICICI car loan interest rates range from 9.30% to 12.85% per annum.
A: Lowest EMI per lakh of ICICI car loan is Rs 1,222 for a loan taken at an interest rate of 9.30% and for a period of 7 years.
A: The maximum tenure of ICICI Bank car loan is 7 years. .
A: ICICI Bank charges a minimum processing fee of Rs 2,500 and a maximum of Rs 5,000 with applicable service tax.
A: ICICI Bank offers you 100% of ex-showroom price of car as loan.
A: Yes, age of the borrower is among the highest eligibility factors to get ICICI Bank car loan as one should be at least 18 years old at loan approval time and not more than 65 years old at loan maturity time.
A: ICICI Bank charges prepayment rate of 5%
A: Yes, in order to increase your ICICI car loan eligibility, you can add your spouse’s income.