ICICI Bank Car Loan Review: Interest Rates @ 7.50%

ICICI Bank Car Loan Review: Interest Rates @ 7.50%

ICICI Bank offers a range of car loan products and services at low rates.

Good for

  • Loan against car
  • Low equated monthly instalments

Bad for

  • Prepayments and foreclosure fees
  • Borrowers without ITRs

Editor's Rating

4.0/5.0

ICICI Bank has low car loan interest rates starting from 7.50%, long loan tenures up to 7 years, and an online, one-stop shop for your car purchasing needs. Whether you are seeking a new car, a secondhand vehicle, or if you're refinancing your used four-wheeler, ICICI provides maximum funding and seasonal promotions to eligible borrowers. However, though you can avail low equated monthly instalments through the lender, ICICI Bank charges costly fees which may increase your total cost of borrowing. Nonetheless, ValueChampion recommends ICICI Bank car loans as a first option to consider during your auto loan search.

Summary of ICICI Bank Car Loan
New car loan rates from 7.50%
Used car loan rates from 10.00%
Loan Against Car up to 140%
7 year new car loan tenure
Buying assistant available

Table of Contents

What Makes ICICI Car Loans Stand Out to Borrowers

ICICI Bank not only charges relatively low car loan interest rates, but also provides 100% on-road financing for new cars and 80% financing for used vehicles. In addition to these generous car loan margins, the lender also provides 140% refinancing for Loans Against Cars. If you are a borrower seeking a low ROI on your car loan or maximum funding for your dream vehicle, then ICICI Bank is a top car loan lender to consider.

Below, you can find the various ICICI car loan options available to you, including what makes them stand out amongst the rest.

ICICI Auto LoanFeatures
ICICI New Car Loan
  • 100% on road financing
  • 7 year loan tenure
  • Interest Rates from 7.40%
ICICI Pre-Owned Car Loan
  • 80% financing of car valuation
  • 5 year loan tenure
  • Interest Rates from 10.00%
ICICI Loan Against CarRefinancing up to 140% of your used car valuation
ICICI Top Up LoanExisting customers can receive additional funding

ICICI Car Loan Interest Rates

ICICI Bank description
ICICI Bank description

ICICI car loan interest rates start from 7.50% and 10.00% for new and used vehicles, respectively. For used cars, ICICI Bank offers the 5th lowest interest car loan amongst the banks our financial experts reviewed. Similarly, ICICI new car loan interest rates rank amongst the top 6 on_current="true" url="/car-loans/how-to-choose-the-best-car-loan#interestRates" title="How to Choose the Best Car Loan"lowest interest car loans/link] of the lenders ValueChampion analysed.

ICICI bank advertises mean interest rates for both used and new vehicles, which is a good metric for borrowers to determine what their final interest rate may be. The average ICICI new car loan borrower will avail an interest rate of 8.89%, which is still lower than our calculated market average of 9.06%. However, if you are interested in financing a used vehicle, you will find a higher-than-average ROI of 14.55%.

ICICI Bank Car Loan ROI

Minimum RateMaximum RateAverage RateType
ICICI New Car Loan7.50%14.00%8.89%Fixed
ICICI Used Car Loan10.00%18.00%14.55%Fixed

It's important to note that your final interest rate will be determined based on a number of factors including your car model and the loan tenure selected.

ICICI Car Loan Eligibility Criteria

Consider this if you seek maximum funding for your car loan

Interest Rates 7.50% - 14.00%
Processing Fee Rs. 3500 - Rs. 8500
Margin 100%
Loan Tenure 7 years

ICICI Bank offers 100% on-road financing for new cars, 80% financing for used vehicles, and 140% refinancing for Loans Against Cars. In addition to these large amounts of funding, borrowers can pay low EMIs over a long 7-year loan tenure for new cars and 5-year loan tenure for used four-wheelers.

Existing ICICI Bank customers are eligible for pre-approved and pre-qualified auto loans, however you do not need to be a salary account holder to avail an ICICI car loan. If you have any queries about promotions or general eligibility criteria like income and age requirement, please contact ICICI customer service.

ICICI Car Loan Processing Fee and Other Charges

A potential drawback to the ICICI car loan is its menu of extra costs. Compared to other lenders we analysed, the bank's processing fees are high. For new cars, ICICI Bank charges a processing fee between Rs. 3500 and Rs. 8500, while used car loans are charged a processing fee up to Rs. 15,000 (2.00% of the total loan amount).

ICICI prepayment and foreclosure fees are also costly. You could pay up to 6.00% of your outstanding balance in prepayment penalties, which is the highest fee amongst all of the banks ValueChampion analysed. Additionally, ICICI Bank charges 5.00% of the car loan amount in foreclosure fees, which is not good for borrowers who plan to pay off their car loan in advance.

ICICI Bank Car Loan: Apply Online

You can apply for an ICICI car loan in person or online for faster processing and instant approval. Pre-existing customers will avail car loan promotions, as well as faster loan sanction and approval times.

ICICI Bank is one of the few car loan lenders that provides an online buying assistant directly on their website. Through this one-stop service, you can find the perfect vehicle for you, as well as any deals that may be available. Click here to begin your for a new car.

Documents Required for Car Loan from ICICI Bank

ICICI requires standard documents for proof of identity, address and income. It's important to note that applicants must submit 2 years of income tax returns or Form-16s, depending on their job status. Below, you can find the required documents for both salaried and self employed borrowers.

Documents RequiredSalaried BorrowersSelf Employed Borrowers
KYC
  • Photographs
  • Identity Proof
  • Address Proof
  • Age Proof
Proof of Income
  • Bank statements with signature verification
  • Latest Salary Slip / Form 16
  • Bank statements with signature verification
  • Last 2 ITRs
Other DocumentationEmployment Stability Proof
  • Business stability or ownership proof
  • SENPs must show partnership deed and Resolution by Board of Directors

ICICI Car Loan Customer Care

If you have any queries about the ICICI car loan application process, contact ICICI customer care.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.