ICICI sees growth in auto loans despite a fall in vehicle sales
As on December 31, 2018, the bank had an outstanding auto loan book of Rs 53,000 crore.
Mumbai: Despite a slowdown in vehicle sales volume, the country's second largest private lender ICICI Bank is confident of achieving a steady growth in the auto loans. The bank’s vehicle loans portfolio currently stands at about 16 per cent of its retail book. As on December 31, 2018, the bank had an outstanding auto loan book of Rs 53,000 crore.
"Growth (in sales volumes) is low but financing penetration is increasing. For instance, our vehicle loan growth is around 18 per cent, which is much higher than the general growth, because of financing penetration," said Anup Bagchi, Executive Director, ICICI Bank.
To catalyse the pace of its auto loan growth, the Bank on Wednesday announced the launch of two facilities to provide its customers with final sanction letters for car and two-wheeler loans instantaneously, in a fully digital manner.
The first service, called ‘Insta Auto Loan’, enables over 20 lakh pre-approved customers to avail the final sanction letter of a car loan instantly and digitally upto Rs 20 lakh for a tenure of upto seven years. The second initiative, named ‘Insta Two-Wheeler Loan’, offers over its 1.2 crore pre-approved customers the facility to get instant sanction of loan upto Rs 2 lakh for a tenure of upto three years. Both the facilities will offer 100 per cent of the on-road price of the vehicle which would allow customers to negotiate with the dealers and buy the vehicle immediately said the Bank.