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What are the eligibility criteria for availing of a car loan in India?


Jun 20, 2023

ICICI Bank is a leading private sector bank in India that provides its customers with various loans, including car loans. A car loan is a type of secured loan in which the bank lends money to the borrower while purchasing a new car. ICICI Bank provides car loans at competitive interest rates that vary depending on various factors, such as loan amount, repayment term, and the borrower’s credit score.

Generally, ICICI Car loan interest rates start around 7.25% per year and can go up to 10% or more, depending on the factors mentioned above.

Benefits of ICICI Car loan Interest

There are several advantages to getting a car loan from ICICI Bank at a low-interest rate, including:

  • Affordable EMIs: With a lower interest rate, you can obtain a car loan with lower Equated Monthly Installments (EMIs), making repayment more affordable and manageable.
  • Flexibility: ICICI Bank provides flexible repayment terms ranging from 12 to 84 months, allowing you to select a repayment schedule that fits your financial goals and budget.
  • Quick and clean processing: ICICI Bank affords a brief and smooth vehicle mortgage application procedure, with minimal documentation and brief mortgage approval, ensuring that you get the finances you need to buy your automobile on time.
  • Special interest rates and reductions: From time to time, ICICI Bank might also provide promotional interest rates or special reductions on vehicle loans, which let you keep the money for your car loan.
  • Simple repayment alternatives: ICICI Bank affords a variety of repayment alternatives, which include online payment, debit cards, and other modes of payment, making it clean to repay your car mortgage.
  • Transparent loan terms: ICICI Bank offers transparent loan terms and conditions that do not have hidden charges, ensuring that you have a clear idea of the loan and its associated fees.

Who is Eligible for the ICICI Bank Car Loan?

The following are the eligibility criterias for an ICICI Bank Car Loan:

  • Age: The applicant should be at least 18 years while applying for the loan.
  • Employment: The applicant must be salaried or self-employed and have a consistent source of earnings.
  • Income: The minimum income requirement varies depending on the applicant’s place and the type of automobile being bought.
  • Credit Score: The applicant should have a very good credit rating of 750 or above.
  • Citizenship: The applicant has to be an Indian citizen or a Non-Resident Indian (NRI) in ownership of a valid Indian passport.
  • Documentation: The applicant has to have all the required files for the car loan application, which includes identity evidence, address proof, income proof, and bank
  • Car ownership: The automobile should be registered under the borrower’s or co-borrower’s name and should not be older than 10 years at the end of the loan

Various types of  Car Loans

Under the banner of Insta Car Loan, ICICI Bank provides different types of car loan:

Instant Car Loan: This kind of loan is for people who want to buy a brand new or used automobile. It affords up to 100% financing for the automobile’s on-road price, with reimbursement terms of up to 7 years. Moreover, the loan is processed fast and with minimal documentation, making it a handy alternative for the ones in want of an instant loan.

Instant Top-Up Loan: This sort of loan is for individuals who already have an ICICI Bank car loan and want to get some additional amount for meet other expenses . It provides up to 100% financing for the additional amount, with compensation terms of up to 5 years. In addition, the loan is processed quickly and with minimum paper work, making it a handy alternative.

Key Features of Instant Car Loan

The following are the benefits of  Instant Car Loan and Instan Top Up Loan:

  • Loan amounts are processed and disbursed quick
  • Minimal paperwork and simple eligibility requirements.
  • Attractive interest rates and flexible repayment alternatives.
  • Online application and loan status monitoring.

Charges on ICICI Car Loans

ICICI Bank may charge certain charges for car loans in addition to interest rates. Here are some of the additional fees that you may be required to pay in addition to the ICICI Bank car loan interest:

  • Processing Fee: For car loans, ICICI Bank charges a processing fee ranging from Rs. 2500 to Rs. 5,000 plus applicable service tax. The processing fee may differ depending on the loan type and other factors.
  • Foreclosure Fees: If you pay off your ICICI Bank car loan before the end of the term, you may be charged a foreclosure fee of up to 5% of the outstanding loan amount. ICICI Bank, on the other hand, allows car loan prepayment after making one payment.
  • Late Payment Fees: If you do not pay your EMI on time, you may be charged up to 2% of the overdue payment fee.
  • Documentation Fees: ICICI Bank may also charge a documentation fee, typically a small amount covering the cost of processing the loan application and document verification.
  • Stamp Duty: You may also be required to pay stamp duty on the loan agreement, which is a state government levy that differs by state.

Before making use of a car loan from ICICI Bank or any other bank, examine the interest rates and other terms and conditions to find a better deal that meets your needs and finances. It is also a good idea to calculate the EMI (Equated Monthly Installment) that you may need to pay towards the loan along with the interest and other expenses.

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