ICICI Bank Car Loan Review

ICICI Bank, the largest private banking network in India, has a wide range of finance options for those wishing to own that dream car. The minimum amount in car loan offered by the bank is Rs 100000 while the maximum amount depends on factors like the financial profile of the borrower and the price of the vehicle. Generally ICICI Bank allows up to 90% of the ex-showroom price of the car but for borrowers in high income bracket, a larger percentage of the car price may be financed, subject to certain conditions imposed by the bank. ICICI Bank also allows the spouse or a blood relative staying in the same residence to be a co-applicant of the car loan.

Click here to Apply for a Car Loan Online

Eligibility conditions

Salaried employees must meet the following criteria to apply for ICICI Bank car loans:

• The applicant must be above 25 years old at time of application and up to 58 years of age at time of maturity of the loan.
• He/she must have an employment history of at least 2 years, out of which one year must be in the current position.
• Furthermore, the gross annual income of the applicant should be at least Rs 400000 lacs.
  

In case of self-employed individuals, a partner, proprietor, director or professional can apply for ICICI Bank car loan provided he/she is:

• Above 28 years of age but less than 65 at the time of loan maturity.
• Engaged in a business whose stability is more than 3 years
• Earning a gross annual income of Rs 2.5 lacs or more.
  

Apart from salaried and self-employed professionals, partnership firms and Public or Private limited companies can also avail a car loan from ICICI Bank in which case, all of them should have a business stability of more than three years and should have a minimum profit after tax of Rs 2.5 lacs. Moreover the Public or Private limited company should be in existence for at least three years if it is to be eligible for car loan from ICICI Bank.

Documentation

Keeping in mind the convenience of its customers, ICICI Bank claims to require the ‘minimal mandatory documents’ for the processing of its car loans. Salaried employees are required to produce:

• Their Latest Salary slip or salary certificate.
• Form 16 of the previous Financial Year or latest Income Tax Returns.
• Proof of identity, address and signature according to ICICI Bank norms

Self-employed professionals have to accompany their car loan application form with:

• Income Tax Returns of 2 previous financial years.
• Any document establishing identity, address as well as signature as per ICICI Bank norms
  

Partnership companies will have to produce the following to avail ICICI Bank car loans:

• Income Tax Returns of 2 previous financial years
• Profit & Loss Account Statements and Balance Sheets of both years.
• Partnership deed and Letter signed by all partners authorizing one partner to execute the required Car Loans.
  

Limited companies and societies require the following documents:

• Income Tax Returns of the last two financial years
• Balance Sheets as well as Profit & Loss account statement of the same years.
• Resolution by Board of Directors or similar managing body.
  

Time taken to process car loan

ICICI Bank claims to have one of the quickest loan processing services in the industry. According to the bank website, the loan will be disbursed within one day of submitting all the necessary post-sanction documents. The bank requires the borrower to submit copies of car sale Invoice, Registration as well as Insurance Certificates within thirty days of loan disbursement.
Loan tenure. The tenure of a new car loan offered by ICICI Bank ranges from one to seven years. The repayment due dates for the loan are 1st and 15thof every month and would depend on the date of disbursement. Repayment of the loan can be made through post-dated cheques, Direct Debit Mandates for all ICICI Bank account holders as well as through Electronic Clearing System or ECS in select cities of the country.

Rate of Interest

ICICI Bank website does not specify the lending rates on its car finance products. However since the bank has tie-ups with most the car manufacturers and authorized dealers, it claims to be able to offer attractive lending rates depending on the discounts extended by the dealers. The interest on car loan offered by ICICI Bank is calculated on monthly reducing balance basis.

Pre-payment of car loans availed from ICICI Bank is allowed but it will attract either a fee of 5% on the outstanding principal amount or interest outstanding for unexpired period of the loan, whichever is lower. Other than this, service charges will be applicable as specified under the terms and conditions of the loan agreement.

Processing charges for car loans from ICICI Bank are as follows:

• Rs. 2500 for gross loan amount of less than Rs 2.5 lacs
• Rs. 3100 for gross loan amount between Rs 2.5 to 5 lacs
• Rs. 4000 for gross loan amount between Rs 5 to 10 lacs
• Rs. 5000 for gross loan amount above Rs 10 lacs
  

In each case there is a documentation charge of Rs 350. Various other charges are specified in the ICICI Bank website.

Provision of Guarantor

For approval of its car loans, ICICI Bank has not made the presence of a guarantor mandatory. The car against which the loan is being is required to be hypothecated to the bank but apart from this the Bank does not require any security or collateral to be provided by the prospective borrower.

Even if an applicant does not meet the minimum income criteria, he/she can avail of a car loan from ICICI Bank under a special funding scheme, the details of which will be conveyed by a representative of the bank. This waiver will of course depend on the discretion of the bank and be subject to other terms and conditions.

Besides having finance options for new cars, ICICI Bank also offers loans to buy used cars. The loan tenure for used cars varies between one and five years while loan eligibility criteria and required documentation are same as that of new car loans.

Applying for ICICI Bank car loan

There are several ways by which a prospective borrower can approach ICICI Bank for a car loan. He/she can apply online from the bank website, email to the bank, call at any of the 24 hour Customer Care numbers, visit the nearest ICICI Bank branch or contact a Direct Sales Agent affiliated with the bank.