ICICI Car Loan Interest Rates 2025

Overview of ICICI Bank Car Loan

Factors Affecting ICICI Bank Car Loan Interest Rates

Here are the factors that affect the ICICI Bank car loan interest rate:

1. Credit Score: Credit report impacts loan interest rate significantly. High loan amounts can be approved at low interest rate if you have a good credit score. The bank uses a high credit score as a measure of creditworthiness.

1. Income: Higher income can get you better lending rates from the bank as it ensures timely debt repayment. Banks prefer salaried individuals over self-employed ones due to consistent cash flow but having a high income, but multiple loans can negatively affect interest rates.

1. Age: Younger borrowers are favorable candidates as they have more years to repay the loan. Car loans are available to individuals 21 years and older and better loan amounts and interest rates are offered to younger borrowers compared to older candidates.

1. Vehicle Model and Age: The vehicle’s age, model, and manufacturer determine whether you will get low or high rates as the vehicle serves as collateral for a car loan.

1. Employment and Employer: Banks often have a list of accredited employers and provide the employees of those companies with higher loan amounts and lower rates due to job security and stable income.

1. Relationship with the Lender: Preferential interest rates may be offered by the bank to long-term clients of the bank due to their established financial history, which is easier for the bank to review.

1. Adding a Co-Applicant: Adding a co-applicant leads to a higher repayment capacity and lower interest rates as it increases the combined income.

1. Down Payment: To negotiate better interest rates, make a higher down payment as it reduces the loan balance and makes you a low-risk borrower by showing high repayment potential.

1. Existing Liabilities and Investments: Determining car loan eligibility and interest rates requires considering your current loans and obligations as high existing liabilities limit repayment potential, pose a higher risk to lenders, while low or no liabilities make you a preferred candidate.

Types of ICICI Bank Car Loan

Here is the list of car loans that are offered by ICICI Bank to their customers:

1. New car loan
2. Top-up car loan

1. Refinance car loan

1. Pre-owned car loan
2. Pre-approved car loan
3. EV car loan

Eligibility Criteria to Apply for ICICI Bank Car Loan

You must fulfil the eligibility criteria listed in the table below to apply for ICICI Bank car loan:

Why should you opt for ICICI Bank Car Loans?

Here are some of the reasons why you should consider ICICI Bank to apply for car loan:

1. The bank offers 100% of the ex-showroom price of the car as loan amount

1. Allows borrowers to apply for loans online and get approved instantly without the hassle of visiting the branch

1. Offers loan for new passenger cars, used cars, electric cars, Multi Utility Vehicles (MUVs) and SUVs

1. Ensures comfortable repayment of loan as the bank provides seven years as repayment tenure

1. Offers car loan of up to 80% for used car purchases

1. The bank also provides pre-approved and pre-qualified car loans for existing customers

1. Easy and simple documentation process

How to Negotiate for the Best Car Loan Interest Rates with ICICI Bank?

Here are the ways to negotiate, to get the best car loan interest rates with ICICI bank:

1. Understand the importance of your credit score in determining car loan terms as a higher score often leads to lower interest rates. Learning how credit score ranges and impacts on loan rates and improving credit score before applying can help you secure more favorable loan terms.

1. To plan your budget, estimate your monthly Equated Monthly Installment (EMI). Your car loan EMI includes both principal and interest and utilize various online EMI Calculator to determine your monthly payments and assess your ability to repay the loan.

1. Car insurance is mandatory in India and varies based on the car's make, model, and age. Estimate the annual premium in advance to ensure it fits within your financial plan as car insurance is costly.

1. Review the warranty and maintenance options available for your vehicle, as regular car maintenance and repair adds up to the expenses. To minimize future expenses consider negotiating with the dealer for extended warranties or free maintenance packages.

How to Check ICICI Car Loan Status

Here is the procedure to check the car loan status of ICICI bank: 

1. You can log in to the ICICI bank website and access the loan status segment for car loans. 

1. Here, you will have to update your details such as, mobile number, application number, date of birth, etc. 

1. Submit the online form to get the loan application status. 

1. In case you do not have the application number, you can enter the one-time password (OTP) that you get on your registered mobile number and 

1. submit the form. 

1. Here, you will have to update your details such as mobile number, application number, date of birth, etc. 

1. Submit the online form to get the loan application status. 

A good credit score can help you secure lower interest rates on loans and credit cards.

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