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What is the CIBIL™ score needed for the ICICI Car loan?

ICICI Bank considers the credit score issued by CIBIL™ as the basis to issue any loan application. The bank requires the applicants to have a minimum CIBIL™ score of 750 for the applicant to be considered for loan application. Apart from the requirement of a minimum credit score, the bank also has set many other eligibility parameters that have to be met by the applicants. These eligibility parameters include,

  • Age of the applicant
  • Income of the applicant
  • Work experience of the applicant
  • Employment status of the applicant
  • Residential status of the applicant
  • Relationship with the bank

The applicants have to meet all the above eligibility criteria set by the bank or any other condition set by the bank at their discretion. These stringent conditions ensure that the loan sanctioned is viable and the applicant has sufficient repayment capacity for the loan taken.

If the loan instalments cannot be paid on a timely basis by the applicants, then it negatively affects the credit score of the borrower. A negative impact on the credit score is considered to be harmful in the long run. The borrower may find difficulty in getting approval of any loans or credit cards or may even face a reduction in their existing credit limit.

What is CIBIL™ score?

The credit score is one of the main points of reference that is looked at by the lender when reviewing a loan application or a credit card application. The credit score of a person tells the lender about the financial health of the applicant. This helps the bank to make a sound decision of sanctioning the loan application for an applicant.

There are four credit rating agencies that provide credit score for individual and businesses in India. These agencies are,

  • CIBIL™
  • Equifax
  • Experian
  • CRIF Highmark  

ICICI bank refers to the credit score issued by CIBIL™ while reviewing the loan application for car loans or any other loan products of the bank. The credit score issued by CIBIL™ ranges from 300 to 900. When the credit score of a person is closer to 300, it is considered to be poor and is grounds for rejection of the loan application. On the other hand, a credit score that is closer to 900 is considered to be good. An applicant having a good credit score can get the sanction of loan application easily.

What are the highlights of the ICICI Bank car loans?

ICICI Bank car loans are available at quite affordable rates to eligible borrowers. The bank requires the applicants to submit the necessary documents along with a duly filled application form to get the sanction of the loan. The highlights of the ICICI Bank car loans are mentioned below.

Particulars

Details 

Amount of Loan

100% of the vehicle on-road price

Rate of Interest

13.75% approximately

Tenure

7 years

Processing Fees

Starting from Rs.3,500 to Rs.8,500

Prepayment Charges

5% of principal outstanding

About ICICI Bank

ICICI Bank (Industrial Credit and Investment Corporation of India) is among the top four banks in the country. It has a huge domestic presence as well as an international presence with subsidiaries and representative offices in many countries across the globe. ICICI Bank provides many products and services to its customer worldwide like insurance, credit, loans, deposits, savings schemes, NRI banking, internet and mobile banking among others for its retail and corporate customers.

ICICI Bank provides many loan products that are available to the customers at competitive rates of interest and for a flexible tenure. Applicants can get these loans at minimal documentation relatively faster as compared to other loan products.

FAQs - CIBIL™ score for ICICI car loan

1. What are the outcomes of a low credit score?

A. The outcomes of lower credit score of a person are,

  • Non-preference of such person by the lenders while considering a loan application or credit card application
  • Reduced credit limit
  • Lenders may issue the loan at their discretion but such loan will be at a higher rate of interest than that for a person with a good credit score
  • Availability of loan at a lower loan amount
  • No possibility of negotiation in processing fees

2. What are some of the common mistakes that negatively impact the credit score of a person?

A. The most common mistakes that negatively impact the credit score of a person are,

  • Nonpayment of existing credit card dues or Loan EMIs
  • Frequent delays in payment of credit card dues or Loan EMIs
  • Frequently paying only the minimum amount due on credit cards
  • Utilizing the credit ratio more than the preferred ratio of 30% to 50% of the credit limit.
  • Applying for multiple loans and credit cards in a short span of time
  • Non-reporting of errors or fraudulent transactions in the credit report of the person
  • Closing an old credit card or the only line of credit

3. What is the minimum CIBIL™ score needed for the ICICI bank Car loan?

A. The minimum CIBIL™ score needed for the ICICI bank Car loan is 750.

4. What are the credit rating agencies in India that issue credit score for individuals?

A. There are four credit rating agencies in India that issue the credit score for individuals, namely,

  • CIBIL™
  • Equifax
  • Experian
  • CRIF Highmark

5. Can part payments of prepayments improve the credit score of a person?

A. Yes. Making part payments or prepayments of the loan amount has a positive impact on the credit score of a person.

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