Mumbai: India’s largest private sector bank ICICI on 24 September launched floating rate repayment for auto and equipment loans from this month. The floating rate currently is 0.5% lower than the fixed rate product.
ICICI is the first private bank in the country to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans.
The floating rate is linked to the Floating Reference Rate (FRR), the benchmark used by the bank for pricing floating rate loans to its retail customers, bank said here in a statement.
“With floating rate loans we are taking another step in the direction of providing innovative solutions to the customer. We expect floating rate loans to appeal to customers who hold a positive outlook on the interest rates,” vehicle loans head N R Narayanan said.
Also, 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, the bank stated.
ICICI Bank is the market leader in the vehicle loan space including — car loans, commercial vehicle loans and two wheeler loans.