ICICI Car Loan Interest Rate – Complete Guide & EMI Tips

Key Takeaways 

• The car loan rate of interest in ICICI Bank starts from 8.5% p.a. for new cars above 36 months and 11% p.a. for used cars, based on credit profile and tenure.
   
• ICICI Bank offers specific car loan types, including New Car Loan, Pre-Owned Car Loan, Refinance, and Top-Up Car Loan. The ICICI car loan interest rate for salary account holders for salaried customers may be more competitive due to better credit assessment and pre-approved offers.
   
• ICICI car loan processing fee is up to 2% of the loan amount + GST, plus documentation & statutory charges.

“Showroom mein ‘yes’ bolna sirf ek second leta hai, lekin interest rate har EMI mein bolta rehta hai. That is why understanding the ICICI car loan interest rate matters before the booking amount goes in.”

A car loan finances your vehicle purchase in manageable monthly payments while spreading the cost over years. ICICI Bank’s interest is expressed as an Annual Percentage Rate (APR) covering the effective cost you pay over time.  

If I borrow ₹12,00,000 at 8.5% p.a. from ICICI Bank for 60 months, my EMI comes to around ₹24,600 per month as shown on ICICI Bank’s official calculator. Each EMI includes a fixed portion of principal repayment and the applicable car loan rate of interest in ICICI Bank charged on the outstanding balance.

Types of Car Loans Offered by ICICI Bank 

ICICI Bank lists specific car loan varieties for different borrower needs:

All loan types are part of ICICI Bank’s official auto financing solutions, offering tenure flexibility and digital applications.

ICICI Bank Car Loan Processing Fees & Charges

ICICI Bank publishes a detailed schedule of charges applicable to car loans. These charges apply in addition to the car loan interest rate for ICICI Bank and are mandatory wherever applicable.
 

These charges are non-refundable, and statutory costs depend on state norms. 

How to Apply for an ICICI Bank Car Loan?

Here’s the official way to apply for a car loan from ICICI Bank:

Step 1: Visit the official Car Loan page on ICICI Bank’s website and click Apply Now.
Step 2: Enter your basic personal and financial details as stated.
Step 3: Choose loan type (new or pre-owned) and customise loan amount, tenure, and interest.
Step 4: Upload KYC documents (identity, income proof).
Step 5: Submit the online application. A bank representative will contact you for verification.

Once approved, you receive a sanction letter and EMI schedule electronically. 

Bonus Tip: Do you know? ICICI Bank strengthened its digital car loan process in 2024–25 with quicker dealership approvals and reduced paperwork for eligible customers.

Conclusion 

ICICI Bank car loans offer structured options for new, used, refinancing, and top-up financing with transparent interest and fee details. These official terms help borrowers plan costs and select the right loan type. Check the bank’s tools, like the ICICI car loan interest rate calculator, before applying.

FAQs Related to ICICI Bank Home Loan Interest Rates 

Is the interest rate offered by ICICI Bank on car loans really fixed, or does it change later?

Car loans from ICICI Bank are generally offered at a fixed interest rate, which means the rate stays the same for the entire loan tenure unless the loan is refinanced or foreclosed.

What is the interest rate of a car loan at ICICI Bank?

The interest rate of a car loan in ICICI Bank starts from 8.5% p.a. for new cars with longer tenures and 11% p.a. or higher for used cars. The exact rate depends on your credit profile, loan tenure, and vehicle type.

Can existing ICICI Bank car loan holders get more funds later?

Yes. Existing car loan customers of ICICI Bank can apply for a Top-Up Car Loan to access additional funds on an ongoing loan, subject to eligibility, repayment history, and vehicle valuation.

Is the ICICI Bank pre-approved car loan interest competitive compared to others?

Yes. ICICI Bank pre-approved car loan typically offers interest rates around 8.5 %–9.10 % p.a. for new cars and higher for used ones, which is competitive with many private banks. Some public sector lenders like State Bank of India have car loan rates at about 8.45 %–9.10 % p.a., depending on market conditions, so comparing offers can help choose the lowest cost option.

Is it good to take a car loan or top up the existing house loan in ICICI Bank?

It depends on the cost and purpose. ICICI Bank home loan top-up usually has a lower interest rate than a car loan, but it increases the home loan tenure. A car loan keeps housing debt unchanged but comes at a higher interest rate. Compare total interest and tenure impact to decide the better option.
 

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.