Private sector lender ICICI Bank on Wednesday announced two new schemes for instant approval of car and two-wheeler loans in a digital and paperless manner.
The Insta Auto Loan would allow pre-approved customers to avail of the final sanction letter of a car loan instantly and digitally for amounts up to Rs 20 lakh, for a tenure of up to seven years. The facility will be available to about 20 lakh pre-approved customers, who are mostly salaried.
The second initiative named Insta Two-Wheeler Loan, offers over 1.2 crore pre-approved customers the facility to get instant sanction of loan up to Rs 2 lakh for a tenure of up to three years.
“Both the facilities will offer 100 per cent of the on-road price of the vehicle,” the bank said in a statement. This would allow customers to negotiate with the dealers and buy the vehicle immediately.
Customers would no longer have to visit the branch office to get the final sanction letter, but would be able to generate the same on the Internet banking platform. It would have a validity of 15 days.
“We believe that this initiative will help the bank consolidate its position in vehicle loans,” said Ravi Narayanan, Head - Secured 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 opening of Public Provident Fund account facility.
According to Anup Bagchi, Executive Director, ICICI Bank, the lender will use data analytics income estimation and steadiness as well as use credit bureau scores to ensure the customer is not over-leveraged before pre-approving them for the scheme.
The bank’s vehicle loans portfolio currently stands at about 16 per cent of its retail book and it has been registering a year-on-year growth of about 17 per cent to 18 per cent. “There is demand for financing. We expect more growth,” Bagchi said.