Maximize tax savings
up to ₹46,800 easily
0% commission • Earn upto 1.5% extra returns
Want to start your business in public transport? ICICI Bank Car Loan is your way to go!. With the advancement of digital India plan, this type of business has taken a roller coaster ride and to match the supply and demand curve, we have banks like ICICI fulfilling the demand. The auto loan provides loan not only for luxurious cars or two-wheelers but for all types of vehicles ranging from 2, 3, 4 wheelers to trucks etc.
ICICI bank provides you a hassle-free car loan at affordable rates, special discounts on processing fee and NIL foreclosure charges. You can also take the auto loan for a brand new or used car. ICICI Bank Car loan offers many features like low processing charges, low EMI, less paperwork, short processing time and many others to mention.
In this article we will look at all aspects pertaining to ICICI Car Loan.
To begin with, It is vital to understand the various cost factors involved for a car loan with regards to the banks funding and your personal contribution (down payment). ICICI presents different interest rates for the different category from 10.75% – 15.50%
|ICICI||New Car Loan||Used Car Loan|
|Loan Tenure||Upto 7 years||Upto 7 years|
|Lowest EMI||Rs. 1,699 per lakh||Rs. 1,699 per lakh|
|Loan Amount||Maximum of 100% ex showroom price||Maximum of 100% ex showroom price|
You definitely want to ensure that your lender (Bank) provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
If the answer is YES, you must be having a lot of questions in your mind like:
Let’s understand this with a simple example:
Let’s assume a scenario. Vineeth has recently taken over his father’s travel business. Being a young entrepreneur he does some market research and realises that he must expand his business to beat his competition. To expand his business he must buy new buses to transport more customers. The price of a new bus is approximately Rs. 20 lakhs. Vineeth’s funds are low and therefore Vineeth plans to approach ICICI Bank for a Vehicle loan.
He inquires about the car loan in detail. He is feed with so much information; he gets puzzled. In this case he thinks of beginning to save from today, so that he is able to pay the initial amount of the loan as well as the EMIs. .
This is where Car loan EMI calculator and ClearTax’s Save is a simple solution to all of Vineeth’s financial issues. ClearTax offers a brilliant way to save for your future financial goals through ClearTax Save!
Just like Vineeth you too can now save for your initial down payment as well as other payments. But we also recommend you calculate and judge your investment options anyway. In general, people start saving their money in either of these, say RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) etc.
Let’s find out the best way to save your money for down payment and for other expenses too:
|Vehicle Value||20 lakhs|
|Time||2 yrs. (24 months)|
|Down payment||20% of Loan value = 4 lakhs|
Now, consider different scenarios for saving your money for the next 2 years.
|Type of Investment||Interest Rate||Maturity Amount after 2 Years|
|Savings Account||4%||Rs. 4,17,084 (Gains=Rs. 17,084)|
|Recurring Deposit||6.75%||Rs. 4,29,359 (Gains =Rs. 29,359)|
|SIP||14-18%||Rs. 4,84,364 (Gains = Rs. 84,364)|
Hence from the above table SIP is the most rewarding saving’s scheme; as SIP will enable you to invest regularly every month by diversifying your investment resulting in you owning your dream car sooner than you expected. Invest now in SIP through ClearTax Save as low as Rs. 1,000!
A Car Loan EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R). EMI calculator.
3 basic criteria on which the loan interest rate would largely depend are:
• Loan amount: Car Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate will be
• Your Salary: higher the salary amount, lower would be the interest rate
• Type of loan opted for: Account holders have a fair deal now! They can enjoy a lower rate of interest on car loans.
It is generally advantageous to take a car loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
To become eligible for ICICI Bank car loan the eligibility standard must be matched. That becomes an important deciding factor for your loan amount. Instances like:
Further, the loan eligibility will also be dependent on the value of the vehicle selected by you.
Some of the key eligibility factors are listed below:
|Age||18 – 65 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Upto 100% ex showroom price|
In addition to the mentioned interest rates, car loans also carry the processing fee, foreclosure charges, registration charges and other charges that are applicable.
Let’s discuss some charges in detail:
You can apply for ICICI Bank car loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.
|Filled up loan application form||Filled up loan application form|
|2 Passport Size Photo||2 Passport Size Photo|
|Identity Proof – Passport/ Driving Licence/ Voter ID/ PAN||Identity Proof – Passport/ Driving License/ Voter ID/ PAN|
|Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport||Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport|
|Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit||Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile|
Car loans provided for self-employed/Business men that are used for commercial purposes are eligible for tax deduction under section 80C of the Income Tax Act.
|Axis Bank||HDFC||State Bank Of India||Indian Bank|
|OBC||Andhra Bank||Central Bank of India||PNB|
|Union Bank of India||IDBI||Federal Bank||IndusInd Bank|
|Bank of India||Bank of Maharashtra||Corporation Bank||Car Loan EMI Calculator|