ICICI Bank Launches Instant Approval for Car and Motorcycle Loans
Private sector lender ICICI Bank on Wednesday announced two new programs for instant approval of auto and two-wheeler loans digitally and without paper.
The Insta auto loan would allow pre-approved customers to benefit from the final sanction letter of an auto loan instantly and digitally for amounts up to Rs 20 lakh, for a maximum term of seven years. The facility will be available for around 20 lakh pre-approved customers, most of whom are salaried.
The second initiative named Insta Two-Wheeler Loan, offers more than 1.2 crore of pre-approved clients the possibility of obtaining an instant loan sanction of up to Rs 2 lakh for a maximum term of three years.
“Both facilities will offer 100% of the vehicle’s road price,” the bank said in a statement. This would allow customers to negotiate with the dealers and purchase the vehicle immediately.
Customers would no longer have to go to the branch to get the final sanction letter, but could generate it on the online banking platform. It would be valid for 15 days.
“We believe this initiative will help the bank consolidate its position in auto loans,” said Ravi Narayanan, Head of Guaranteed Assets, ICICI Bank.
The lender already offers a number of instant products, including the country’s first instant credit card, insta personal loan, instant digital credit called PayLater, insta overdraft facility for MSMEs, and instant account opening. of the Public Provident Fund.
According to Anup Bagchi, executive director of ICICI Bank, the lender will use the estimated and stable income from the data analysis, as well as the scores of the credit bureaus to ensure that the customer is not over-indebted before to pre-approve them for the program.
The bank’s auto loan portfolio currently represents about 16 percent of its retail portfolio, and it has grown about 17 to 18 percent year-over-year. “There is a demand for funding. We expect more growth, ”Bagchi said.