ICICI Bank to offer cheaper car loans

[alibhai]

Bangalore: In a move to increase the customer demand, ICICI Bank has slashed its car loan rates by 50-75 basis points (bps). "We had several car loan segments for which prices were in the range of 12.5-14.5 percent. There has been a recalibration of car categories, which has led to adjustments in prices for certain car segments. Now, the customer rate would be in the range of 12-14 per cent after a 50-75 bps change," said a bank's Spokesperson to Rupee Times.


For the last 12-15 months, the bank as part of its loan-book restructuring, went slow in auto loan, home and corporate loans segments. The bank focused on high-risk segments like credit cards, personal loans and two-wheeler loans. The retail loan portfolio of the bank stood at $20 billion (Rs. 96,000 crore) at the end of June 2009, comprising 12 percent of auto loans. The bank is targeting five percent growth in its loan book during the current financial year.

Recently, IDBI Bank had also announced auto loan and deposit rate cuts. The bank reduced the interest rates on its domestic deposits by up to 50 bps across various maturity buckets. The bank has also cut lending rates for its auto loans. With this revision, the rate of interest on auto loans by IDBI Bank for tenure of three years would range from 10.50 percent to 12 percent.

[oliversmith]

The emi car loan calculator that uses a compound interest formula has a constant monthly payment amount. The payments every month should be down by the borrower in order to pay the principal amount plus the interest of the loan. A person who usually applies for a loan has challenges regarding income and expenses. What monetary organizations made is make the payment for the loan in installments.
http://www.rightcar.com/forum/car-finance/38-car-loan-basics