ICICI Bank Car Loan Interest Rate November 2026: 8.40% Over 36 Months

How the ICICI Bank car loan interest rate is set

The grid, effective from 1 June 2026, has two rows: new car loans of more than 36 months at 8.40% onwards, on CIBIL score and car model; new car loans of less than 36 months at 10.25% onwards, on CIBIL score and car segment. Exactly 36 months sits in neither row as printed, so ask before you fix the tenure.

No score bands are printed, only factors: car segment, CIBIL score, relationship with the bank, tenure and the RBI repo rate. With no ceiling, a thinner file learns its rate only when the offer arrives.

Used cars start at 9.75% p.a. The bank's dedicated used car rates page shows a blank template where the rate should be, so we take the figure from its main car loan page; see our used car loan guide.

Fixed or floating, and why it matters

ICICI doesn't label the loan. A floating-rate bank loan must track an external benchmark such as the repo rate, 5.50% since 7 October 2026, and if sanctioned on or after 1 January 2026 it carries no exit charge under the RBI's 2025 directions on pre-payment charges. ICICI prints 2% to 3% exit charges in the first 24 months, which the RBI allows only on a fixed-rate loan. Your Key Facts Statement's "interest rate type" line settles it.

What 8.40% means in EMIs

Take ₹15 lakh at 8.40%. Over 5 years the EMI is ₹30,703 and the interest ₹3,42,153; over 7 years the EMI drops to ₹23,679 but interest climbs to ₹4,89,067, so the two extra years cost ₹1,46,914 (₹4,89,067 less ₹3,42,153). For a loan under 36 months, run the car loan EMI calculator at 10.25%.

Fees and charges on a ₹10 lakh loan

The processing fee on a new car loan is up to ₹8,500 plus GST whatever the size. A used car loan pays 2% of the amount or ₹20,000, whichever is lower, plus GST: the full ₹20,000 on ₹10 lakh. Add documentation charges of ₹500, an RC collection fee of ₹600 and stamp duty at your state's rate. Before GST and stamp duty, a new car buyer pays at most ₹9,600 (8,500 plus 500 plus 600).

Closing early or paying down

Exit charges fall with time. Foreclose within 12 months and you pay 3% plus GST of what you prepay; from month 13 to 24, 2% plus GST; after 24 months, nothing. Part prepayment costs 3% plus GST up to 24 months, then nothing, with no waiting period, no cap on amount or number and no minimum gap. With ₹9 lakh owed, closing in month 10 costs ₹27,000 plus GST (3% of ₹9,00,000); in month 18, ₹18,000 (2% of ₹9,00,000); from month 25, nil.

Other charges

A late EMI draws a penal charge of 5% a year plus GST on the overdue instalment, the separate fee the RBI now requires in place of the old 24% penal interest. A bounced NACH debit costs ₹500 plus GST. Our car loan fees guide sets these against other lenders.

Eligibility and documents

ICICI lends to salaried and self-employed individuals and says an existing relationship with the bank "is beneficial".

Loan size follows the car, up to 100% of the on-road price, with no rupee cap. Tenure is 12 to 84 months on a new car, up to 7 years on a used one.

No document checklist is printed; keep KYC, income proof, bank statements and the dealer's quotation ready. Not published: a minimum CIBIL score, loan limits, a self-employed income floor for new cars, and any EV terms.

How to apply for an ICICI Bank car loan

Three doors. The quickest is pre-approval: for the "select ICICI Bank customers" it has screened, the Insta Digital Car Loan appears in iMobile, net banking or the car loan portal. You set the amount and tenure, eSign, download a delivery note and hand it to the dealer, who is paid directly, up to 100% of the on-road price within your offer. ICICI prints no sanction time in hours or days.

Everyone else uses the online form on the bank's rates page, a branch, or the dealer's finance desk. Start at our car loan hub if you haven't shortlisted lenders yet.

How to choose the right car loan

Fix the tenure first; at ICICI it moves the floor by 1.85 points. Then read the Key Facts Statement, due before signing since 1 October 2024: APR with its computation, rate type, every fee, the schedule and exit charges, valid for three working days. Compare the APR, not the headline, with the car loan interest rates of every lender we track.

Who the ICICI Bank car loan suits, and how it compares

At 8.40% ICICI holds the 14th lowest published floor of the 30 lenders we track, level with HDFC Bank and just under the 8.5% median; the lowest, UCO Bank's 7.70%, needs a CIBIL score of 825 or more. ICICI suits an existing customer with a strong score who wants a 4 to 7 year loan, full on-road funding and a free exit after two years. Look elsewhere for a 3-year loan, where 10.25% applies, for a published ceiling or rate type, or for an electric car rate.

Against HDFC Bank, Karnataka Bank and Federal Bank

HDFC Bank starts at the same 8.40% onwards with no ceiling, but caps a new car loan at ₹25 lakh and runs to 8 years against ICICI's 7. Its fee is 0.5%, between ₹3,500 and ₹8,000. On exits ICICI wins: HDFC takes 5% of the outstanding at any point, ICICI nothing after 24 months. HDFC does publish an electric car rate, 8.15% onwards.

Karnataka Bank alone prints a full range, 8.35% to 11.85% p.a., floating on an external benchmark, the row set by CIBIL score. Funding stops at 90% of the on-road price, the fee is 0.5% between ₹2,500 and ₹10,000, and individuals pay no foreclosure charge.

Federal Bank prints a rate type: 8.50% to 10.25% p.a. fixed or 10.15% floating on its repo-linked rate for new cars, 11.50% to 15.25% fixed for used. Its fee schedule was unreadable when we checked, so we record no fee figure.

Common mistakes

• Taking a 2 or 3 year tenure to save interest, then paying from 10.25% instead of 8.40%.
• Treating the 8.35% in the page title as the offer; your KFS says what you get.