ICICI Bank launches ‘insta auto loan’ for pre-approved customers

By: |
Published: April 18, 2019 12:18:48 AM

ICICI Bank on Wednesday launched facilities to boost its vehicle financing portfolio that would instantly deliver the sanction letters to current pre-approved customers availing two-wheeler and car loans. The bank plans to grow its vehicle loan portfolio by 17% in FY20.

ICICI Bank launches ‘insta auto loan’ for pre-approved customersICICI Bank launches ‘insta auto loan’ for pre-approved customers

ICICI Bank on Wednesday launched facilities to boost its vehicle financing portfolio that would instantly deliver the sanction letters to current pre-approved customers availing two-wheeler and car loans. The bank plans to grow its vehicle loan portfolio by 17% in FY20.

The private-sector lender’s vehicle loans amount to 16% of its outstanding retail loan book of Rs 53,000 crore. It plans to initially extend the ‘insta vehicle loan’ facility to salaried customers using their income estimates, current expenses and credit bureau scores. “We are focusing on increasing our retail loan penetration at a time when loan growth numbers are declining,” said Anup Bagchi, ED, ICICI Bank.

The bank is offering its insta auto loan up to `20 lakh to close to two lakh pre-approved customers for a period of up to seven years and insta two-wheeler loans up to `2 lakh to close to 1.2 crore pre-approved customers for a period of up to three years on the entire on-road price of the vehicle.

“We believe that this initiative will help the bank consolidate its position in vehicle loans,” said Ravi Narayanan, head-secured assets, ICICI Bank. The validity for the sanction letter will be 15 days.

The lender also sees a large market for the second-hand, or used car, space and plans to offer up to `16 lakh instant loans to customers opting to buy second-hand cars.

The bank in March launched a secured home loan product ‘Instant Home Loan’ for pre-approved salaried customers that promises digital final sanction letters with a validity of six months and instant loans up to `1 crore for a tenure of up to 30 years. For final disbursal, the customer will have to visit the branch.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.