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Home / Car Insurance / Articles / Lowest ICICI Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Lowest ICICI Bank Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoJul 20, 2023

When it comes to fulfilling our dreams of owning a car, ICICI Bank stands as a reliable financial partner with its attractive car loan offerings.

As one of India's leading private sector banks, ICICI Bank provides customers with competitive interest rates and flexible repayment options.

In this article, we will delve into the details of ICICI Bank car loan interest rates, shedding light on the key features, eligibility criteria, and benefits of choosing ICICI Bank for your car financing needs.




ICICI Bank Car Loan Interest Rates in 2023

The following table provides more details about the ICICI Bank car loan interest rates as of July 2023.

ICICI Bank Car Loan Scheme

Interest Rate

New Car Loan

8.85% onwards

Used Car Loan

11.25% onwards

Features of ICICI Bank Car Loan

Here are the key features of the ICICI Bank car loan schemes.

  • Avail a car loan amounting to 100% of the car's ex-showroom price.

  • Apply conveniently online and receive instant approval, eliminating the need to visit a branch.

  • Secure a loan for the purchase of new passenger cars, used cars, electric cars, etc.

  • Enjoy flexible repayment tenures of up to 7 years, ensuring comfortable loan repayment.

  • Obtain an instant car loan of up to 80% for the purchase of used cars.

  • Existing customers can benefit from pre-approved and pre-qualified car loans.

  • Experience a hassle-free and straightforward documentation process.

How to Calculate ICICI Bank Car Loan EMI

To calculate the EMI (Equated Monthly Installment) for an ICICI Bank car loan, you can follow these steps.

Step 1. Gather the Required Information: Before starting the calculation, gather the essential details.

Loan Amount: The total amount borrowed from ICICI Bank to finance the car purchase.

Interest Rate: The annual interest rate at which the bank is providing the loan.

Loan Tenure: The duration for which the loan will be repaid, usually in months.

Step 2. Utilise the EMI Formula: The EMI can be calculated using the following formula.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

P = Loan Amount

R = Monthly Interest Rate (Annual Interest Rate/12/100)

N = Loan Tenure in Months

Step 3. Calculate the Monthly Interest Rate: To find the monthly interest rate (R), divide the annual interest rate provided by ICICI Bank by 12 and then convert it to a decimal. For example, if the annual interest rate is 9%, the monthly interest rate will be 9/12 = 0.75% or 0.0075 in decimal.

Step 4. Determine the Loan Tenure in Months: The loan tenure provided by ICICI Bank is usually in years. Convert the loan tenure from years to months for calculation purposes.

Step 5. Put the Values in the EMI Formula: Using the gathered information, insert the values into the EMI formula to calculate the Equated Monthly Installment.

Eligibility Criteria: ICICI Bank Car Loan Eligibility

To get an ICICI Bank car loan to buy a new or second-hand car, the applicant must fulfil the following eligibility criteria.

Salaried Applicant

  • At the time of loan maturity, the applicant's age should fall within the range of 25 to 58 years.

  • A minimum annual income of Rs 2.50 lakhs is necessary.

  • Applicants must possess a total of two years of work experience, with at least one year of current employment.

Self-Employed Applicant

  • Applicants must be aged between 28 and 65 years.

  • A minimum annual income of Rs. 2 lakhs is mandatory.

  • Applicants should have business stability of at least three years.

Partnership Firms

  • A minimum Profit After Tax (PAT) of Rs. 2 lakhs is necessary.

  • Applicants must demonstrate a minimum of three years of business stability.


  • The present company should have a business history of over three years.

  • A minimum of Rs. 2 lakhs Profit After Tax (PAT) is necessary.

  • A minimum of three years of business stability is required.

Application Process: How to Apply for ICICI Bank Car Loan

There are two methods to apply for an ICICI Bank car loan. The following sections explain the same.

Online Process

  • Visit the official website of ICICI Bank.

  • Select “New Car Loan” from the “Loans” menu.

  • Click on the “Book Your Dream Car” button.

  • Fill in the required details and submit the online loan application.

Offline Process

Walk into your nearest ICICI Bank branch and enquire about the car loan. The bank official will guide you through the application process. 

Documents Required to Apply for a Car Loan from the ICICI Bank

Here is the list of documents you need to apply for an ICIC Bank car loan.

KYC Documents

  • Identity proof (Passport, Driving Licence, Voter ID, PAN Card, and Aadhaar Card).

  • Address proof (Passport, Driving Licence, Voters ID, or Aadhaar Card).

  • Age proof (Driving Licence, Birth Certificate, Passport, etc.).

  • Signature Proof (Banker’s verification, PAN card, Passport, etc)

Salaried Applicants

  • Latest salary slips or Form 16

  • Bank account statements.

  • Proof of employment continuity (Work experience certificate, relieving letter, appointment letter, etc.)

  • Photographs of the applicant.

Self-Employed Applicants

  • ITR (Income Tax Returns) for the last two years.

  • Bank account statements.

  • Business stability/ownership proof.

  • Photographs of the applicant.

Self-Employed Non-Professional Applicants

  • Bank account statements.

  • ITR for the last two years, along with the audit/financial report.

  • Business stability/ownership proof.

  • Partnership deed and a letter authorising one partner signed by all partners.

  • Resolution by Board of Directors (Companies and Societies)

Factors Affecting ICICI Bank Car Loan Interest Rates

Several factors can influence the ICICI Bank car loan interest rates. These factors include the following.

  • Credit Score: The credit score of the loan applicant plays a crucial role in determining the interest rate. A higher credit score indicates a good credit history and responsible repayment behaviour, which often leads to lower interest rates. On the other hand, a lower credit score may result in higher interest rates as it suggests higher credit risk to the bank.

  • Loan Amount and Tenure: The loan amount and tenure are significant factors influencing the interest rate. Typically, larger loan amounts or longer loan tenures might lead to slightly higher interest rates. Borrowers seeking a smaller loan amount with a shorter tenure may be eligible for more favourable interest rates.

  • Type of Car: The make and model of the car being financed can impact the interest rate. Some specific car models may be eligible for special financing schemes or discounted interest rates, making it essential for borrowers to inquire about any such offers.

  • Income and Employment Type: Applicants with higher incomes and stable employment have a higher chance of securing lower interest rates. Salaried individuals with a consistent job history or self-employed individuals with a successful business track record are considered less risky borrowers and may qualify for reduced interest rates.

  • Relationship with ICICI Bank: Existing customers who have a long-standing relationship with ICICI Bank may be offered preferential interest rates as part of loyalty programs or special customer offers. Having a savings account or a positive history with the bank can enhance the chances of getting a better interest rate.

  • Market Conditions: ICICI Bank Car Loan interest rates are also influenced by broader market conditions and monetary policy set by the Reserve Bank of India (RBI). Economic factors such as inflation, repo rates, and liquidity in the market can impact the overall interest rate scenario.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards


8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards


8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions (FAQs) about ICICI Bank Car Loan

Here are some of the most common questions and their answers related to ICICI Bank car loans.


What is the ICICI Bank car loan interest rate?

The ICICI Bank car loan interest rates start at 8.85%.

Is it good to take a car loan from ICICI Bank?

Opting for ICICI Bank for a car loan is a good option as it provides attractive interest rates, quick approval, flexible repayment tenures and many other benefits.

How is my car loan interest rate determined by ICICI Bank?

ICICI Bank determines the car loan interest rate based on several factors, including your credit score, loan amount, loan tenure, type of car being financed, and your relationship with the bank. A higher credit score and a shorter tenure may result in a more favourable interest rate.

Can existing ICICI Bank customers get special interest rate offers on car loans?

Yes, existing ICICI Bank customers may be eligible for special interest rate offers on car loans as part of loyalty programs or customer-centric promotions. These offers are often designed to reward loyal customers and provide them with attractive financing options.

Does ICICI Bank offer different car loan interest rates for new and used cars?

Yes, ICICI Bank may offer different interest rates for new and used cars. Generally, used car loans may attract slightly higher interest rates due to the perceived higher risk associated with financing pre-owned vehicles.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.


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