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Purchasing a used car is common practice in India. Consumers choose pre-owned cars for its affordability. Some new drivers also prefer to get a used car to practice driving before investing in an expensive model. No matter what the reason for purchasing a used car is, banks in India have a separate loan product for this purpose. Used Car Loans is a segment of considerable allocation in any bank’s portfolio.

ICICI Bank, the leading private sector bank in India, offers its customers with used car loans to purchase pre-owned cars, SUVs and Jeeps. Existing customers of ICICI Bank can also get additional benefits with regards to the interest rates and processing fees.

Loan AmountInterest RatesRepayment TenureProcessing Fees Eligibility criteria
Upto 80% of Car value14.25%Up to 60 months2% of the loan amount or Rs.15,000 (whichever is lower)Salaried, Self-Employed Professionals and Self-Employed Non-Professionals

Features of ICICI Bank Used Car Loan

Icici Bank Used Car Loan

Quick processing and faster approvals: ICICI Bank makes sure that your loan processing is quick and hassle-free. Customers have an option to apply for the loan online on the ICICI Bank website. Loan processing takes place with minimal documentation in a short time. Online applications are approved as quickly as 10 minutes.

Pre-Approved offers for existing customers: Existing customers of ICICI Bank get pre-approved offers for car loans. The customer can utilize these pre-approvals for a faster loan process. You can log on to your ICICI Bank account to generate your pre-approval letter.

The higher loan amount and repayment tenures: ICICI Bank offers used car loans of up to 80% of the car value. You can also get up to 5 years of repayment tenure to repay the loan.

Attractive interest rate: ICICI Bank offers one of the best interest rates for its used car loans. Further, based on the eligibility criteria and the repayment capability of the customer, this interest rate can go down further.

Car Finder feature: ICICI Bank has a ‘Car Finder’ feature that makes the car buying experience more convenient, complete and decisive experience for its customers. This feature allows you to view a list of all available cars, their features, and specs in a 360degree view, compare them with other

Check eligibility instantly: The ICICI Bank website has an EMI & Eligibility calculator that allows you to check your eligibility and calculate the tentative EMI for your required loan amount. This helps the customers to calculate the monthly cash outflow and repayment capability before applying for the loan.

How to apply for ICICI Bank Used Car Loans?

  • Applicants can approach their nearest branch of ICICI Bank to apply for a used car loan.
  • Internet users can conveniently apply for this loan on the ICICI Bank website. Both customers and non-customers can apply online under the Car Loans page.
  • Applicants can send an SMS, CAR to 5676766, to get dedicated car loan services.

Documents needed to apply for ICICI Bank Used Car Loan

  • Application form
  • KYC Documents
    • Photographs
    • Identity Proof
    • Address Proof
    • Age Proof

Bank Statements

  • Signature Verification

Income Proof

  • Latest Salary Slip / Form 16
  • Income Tax returns of 2 previous financial years along with complete financial/audit report.
  • Income Tax Returns of 2 previous financial years.

Other Documentation

  • Business Stability proof / Ownership proof
  • Employment Stability Proof
  • Partnership deed and Letter signed by all partners authorising one partner
  • Companies and Societies: Resolution by Board of Directors (or such managing body) and Memorandum and Articles of Association

Fees & service charges associated with ICICI Bank Used Car Loans


Non Refundable Loan Processing Fees

2% of loan amount or Rs.15,000 (whichever is lower)

Documentation Charges

Rs.550 + GST

Registration Certificate Collection Charges

Rs.450 + GST

Stamp Duty


Prepayment Charges

5% on principal outstanding or interest outstanding for unexpired period of loan (whichever is lower)

Part Pre payment charges

6% + GST on amounting getting prepaid in part, subject to the below conditions: 

Minimum prepayment will be equivalent to 1 EMI amount

Maximum prepayment will be equivalent to 25% of principal outstanding

Prepayment is allowed only twice during the loan tenor with a gap of 12 months.

Charges for late payment of loans

2% per month on the outstanding instalment

Swap Charges

Rs. 500 per transaction

Bounce Charges

Rs. 500 per transaction

Amortisation Schedule Charges

Rs. 500 per schedule

Statement of Account Charges

Rs. 200 per statement

Prepayment Statement Charges

Rs. 200 per statement

Duplicate No Objection Certificate (NOC)/No Due Certificate (NDC) Charges

Rs. 500 per NOC/NDC

NOC for conversion from Petrol to LPG/CNG

Rs. 500 per NOC

Revalidation of NOC Charges

Rs. 500 per NOC

NOC to convert from Private to Commercial & Commercial to Private Registration

Rs. 2,000 per NOC

Valuation charges for Used Car

Rs. 800 + GST

Loan Cancellation Charges

Rs. 3,000 per loan

Miscellaneous charges viz. charges incurred in filing legal suit, repossession charges, Non Maintenance of Mode of Payment (NMMP) charge, pick-up charges) wherein customer requests for a pickup of the payment, professional charges for availing services of professionals i.e. title search, valuation, etc., charges incurred in SARFAESI proceedings, paper advertisement charges, auction charges for repossessed asset, security guard charges for protection of repossessed assets, yard charges for parking the repossessed asset in authorised yard, enforcement charges for availing logistical support during repossession, charges incurred in sending different notices, charges levied for deposition of cash/cheque in branches for the purpose of paying loan dues and any other charges (as applicable) that are not budgeted or specified, but are incurred by the bank on behalf of the customer.

At actuals

Factors affecting my eligibility for a Used Car loan with ICICI Bank

A pre-existing relationship with the bank – ICICI Bank offers special benefits for existing customers. If you have an existing loan relationship with the bank and you have maintained a healthy repayment history, it gives an added advantage for any new loan you apply with them.

Value of the Pre-owned vehicle being purchased – Once you have identified the vehicle you want to purchase, a surveyor will be sent to assess the vehicle’s value. Based on his evaluation and the value he fixes for the vehicle, the loan amount will be derived.

Nature of job – Your current income level plays an important role in processing your loan. Banks want to ensure that the borrower has a regular and steady income to afford the EMIs. Salaried individuals or pensioners, businessmen, professionals, corporates, and business entities are allowed to apply for a car loan with the bank.

Credit score – A healthy credit score ensures a higher loan amount and a better rate of interest. A good credit score shows the credibility of the borrower, which is an important factor for the banker. Your creditworthiness assures the banker about the repayment of the loan. Hence, be updated on your latest credit score. You can improve it by repaying any outstanding loans or credit card bills. Having a repayment history that is clean and regular ensures your loan approval.

Co-applicants – It is a wise move to add co-applicants on your loan application, even if the car is not purchased on their name. Any earning member of the family, like your father, mother, siblings or spouse can be added on the loan application to increase the income level. Higher the income level, the more the loan amount awarded.

ICICI Bank Used Car Loans FAQs

1. What is the best rate of interest I can get for a car loan with ICICI Bank?

Numerous factors affect the interest rate you get on your car loan. Currently, ICICI Bank is offering interest rates in the range of 8.89% to 14.5% for car loans.

2. What is the age eligibility to apply for ICICI Bank Used Car loan?

You must be at least 21 years of old and less than 65 years of age to apply for a used car loan with ICICI Bank.

3. Do I need a guarantor to avail this loan?

Not necessary. The purchased vehicle is hypothecated to the bank and serves as security until the loan is repaid.

4. Can I prepay my ICICI Bank Used Car loan?

Yes, you can prepay the loan after completing at least 6 continuous EMIs. In fact, ICICI Bank allows full preclosure as well as part-prepayments for car loans.

5. How do I know I am eligible for a car loan?

Your car loan eligibility depends on your occupation, salary, age and existing liabilities. Before applying for the car loan, you can visit your nearest ICICI Bank branch and check your eligibility with the executives there. You can also check your eligibility instantly on the bank’s website. The website has an EMI Eligibility Calculator, where you can key in your details such as your employment status, total years of employment, your age and other required details. The calculator will then tell you if you are eligible for a car loan and what is the amount that you could avail.

6. How long does it take the bank to pass my loan?

ICICI Bank promises a very quick loan processing time for its car loans. With the online application feature, your car loan application could be approved within 10 minutes. Once the documentation on your application is complete, the bank will take around a week to disburse the funds in your account. Existing customers could get their loan amount disbursed within minutes of approval.

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