Car Loans FAQs

What are the loan tenure options?

The tenure of the loan could range from one to seven years for new car and  up to five years for Pre-Owned car

What are the lending rates?

The lending rates vary on the basis of car models and tenure selected.

How is the interest charged/calculated?

Interest is calculated on a monthly reducing balance basis.

What is a Monthly Reducing Balance?

In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month.

Do I have to pay any additional charges?

Please click here to know the existing service charges.

How do I approach ICICI Bank for a Car Loan?

How much time will it take for my loan to be approved?

The loans are generally approved within 24 hours of submission of complete documentation.

Who can be the co-applicants for the loan?

Your spouse or any blood relative staying in the same residence can be a co-applicant.

Is a personal guarantor a must?

No, a personal guarantor is not a must.

What security/collateral do I have to provide?

No additional security/collateral needs to be provided, apart from the car against which the loan is granted, being hypothecated to ICICI Bank.

How do I repay the loan?

The loan can repaid through Post Dated Cheques drawn on ICICI Bank Ltd. Alternately, if you have a Bank account with ICICI Bank, you can issue a direct debit mandate, to your existing ICICI Bank account or even opt for an ECS option for the repayment.

Can I prepay my loan?

We charge prepayment fee of 5% on the outstanding principal amount and the-Service Tax will be charged as applicable on the pre-payment fee.

Do I need to open an account with ICICI Bank for availing and/ or servicing the loan?

We will encourage you to start a banking relationship with us so that we will be able to offer host of other value added services, which are complementary to the loan, however opening an account with us is not mandatory.

What are the stages involved in availing a loan?

The stages involved are:

  • Application
  • Processing
  • Documentation
  • Sanctioning of the loan
  • Disbursement

Does ICICI Bank have a loan for the car I want?

ICICI Bank car loans are available for almost all passenger cars - New as well as Pre-Owned.

Can I avail of a loan on my existing car?


How can I foreclose my Car Loan / Two Wheeler Loan?

To facilitate prepayment of your Car Loan / Two wheeler Loan , you are required to visit an ICICI Bank Asset Servicing (Retail asset operation group ) branch along with the below mentioned documents to complete the prepayment process:

  • Pre-payment Statement
  • Request letter signed by the loan applicant
  • Bank statement reflecting the clearance of the last installment
  • PAN Card (If the closing cash payment is more than Rs.50,000)
  • Vehicle Registration Certificate (R C Book Copy)
  • Vehicle Insurance Copy
  • Mode of payment can be cash, cheque or demand draft

How can I get my un-banked PDC or Security PDCs?

In the event of the applicant's/s' wishes, to procure the Post-Dated Cheques and / or Security Post Dated Cheques that remain un-banked at the end of the loan tenure / change of repayment mode; or details of such un-banked post dated cheques and / or security post dated cheques, the applicant/s must make a request for the same, within thirty days of closure of loan / change of repayment mode. If this is not done, ICICI Bank shall have the discretion / responsibility to destroy the un-banked post dated cheques including security post dated cheques without any further notice and ICICI Bank shall not have the obligation to return the same to the Applicant/s.

How do I update my mailing address, mobile number or e-mail ID registered under my loan account?

You may update your mailing address, mobile number or e-mail ID through any of the following modes:
a. Through Internet Banking:

  • Login to with your user ID and password
  • Click on the "Loans" option
  • Click on the "Requests" option
  • Select the option "Request for Address Change" or "E-mail and contact number updation"

b. Through our Customer Care:

Call our 24-hour Customer Care. To know the customer care number please click here.

c. At any ICICI Bank branch:

Visit any ICICI Bank loan branch with a valid photo ID proof and submit an application.