ICICI Bank expects speedy loan growth riding in instant loans
After launching an instant loan to customers seeking to buy ICICI Bank cars and wheels, auto loans expect to quicken growth momentum. Pre-approved ICICI customers can now send an approval letter for a car or auto loan which can be used to get the full loan for these vehicles within 15 days.
The bank has initially extended this facility for salaried customers having a steady cash flow into their accounts. It will use their income estimates, analyses their monthly expenses and use credit bureau scores to extend this facility.
“These analytical markers form the basis of our assessment. We already offer instant personal loans, home loans, credit cards and PPF options and auto and two-wheeler loans have been added to these products. This will help us improve credit delivery and quicken the pace of growth in this segment,” said Anup Bagchi, executive director at ICICI Bank.
Vehicle loans constitute 16% of the bank’s retail loan portfolio and totalled about Rs 53,000 crore at the end of December. For now, the bank is offering the instant auto loan of up to Rs 20 lakh for two million pre-approved customers for a tenure of up to seven years. The in two-wheeler loan of up to Rs 2 lakh is being offered to 12 million pre-approved customers for a tenure of up to three years.