ICICI Bank introduces Floating Rate for car loans

New Delhi, Sep 24: Country's second largest bank ICICI Bank today launched its 'Floating Rate Repayment Product' for loans on cars, commercial vehicles, construction equipment and professional equipment.

''This makes ICICI Bank the first among private banks and NBFCs to offer this product to retail loan customers,'' said a statement.

ICICI Bank is a leader in providing vehicle loans and it was essential to launch a product, which is the only private bank giving customers the choice of a Floating or Fixed rates for loan products in the segment, it added.

The floating rate that the Bank is offering is linked to the Floating Reference Rate-FRR, the benchmark used by the Bank for pricing floating rate loans to its retail customers. Currently the floating rate is available to customers at 50 bps lower than the equivalent fixed rate product.

''Customers must also keep in mind that in the auto loan market, the customer rates vary as at times there are special incentives and discounts available from the manufacturers, or dealers and finance commission,'' ICICI Bank (Head-Vehicle Loans) N R Narayanan said.

UNI