ICICI Bank Launches Express Car Loan for Savings Account Holders
ICICI Bank allows their savings account holders to apply for a pre-approved loan to buy a car. This financing option does not require the applicant to show any money upfront, and the amount of the loan is disbursed within four working hours. The customer’s creditworthiness is assessed using an algorithm defined by the banking institution.
The Indian institution unveils a pre-approved loan facility exclusively for their savings account customers. This guarantee allows them to finance up to 100% of the car’s overall price, including on-road price of the car (car plate, shipping, and road taw for a year). Customers may be granted up to 2 million rupees (nearly €23,500), disbursed within four working hours, to be repaid within 7 years or more.
Customers can visit a branch (or send a text message) to have their eligibility assessed using their account number. They must fill in an application form and provide supporting documents. Their creditworthiness is then calculated using an algorithm based on various financial partners, building on the customer’s credit score and quality of the relation with the bank. ICICI Bank relies on this data to approve the loan, or not.
Borrowers may then visit any car dealership in the country where they chose and buy a car.
Comments – ICICI Bank: full focus on meeting customers’ expectations
ICICI Bank claims they are the first institution in India to come up with such a car financing option, especially as they include the on-road price of the car, as well. This option helps them stand out with innovative, promptly available products and services. The point is also to secure their loyalty, and bet on the current festive season. ICICI also announced a partnership with the ride-hailing company Ola to propose instant loans to their car drivers, based on running their professional data through a specific algorithm.
They also try to stand up to increasingly pressuring competition from both traditional and alternative players. Car manufacturers, including Renault, for instance, have financing offers for their Kwid car models. The Indian credit market also sees initiatives from other players, which also contribute to developing the market, LendenClub, for instance.