ICICI Bank launches SMART EMI Car Loan, an easy-on-the-pocket leasing scheme

ICICI bank has launched an innovative car loan product that finances the car’s maintenance and insurance. Here are the details.

Kavya Balaji Dec 3, 2019

Car leasing schemeICICI Bank has just announced the launch of its innovative car loan scheme which enables customers to drive a new car home at a lower cost and with higher convenience. Termed as ‘SMART EMI’, this loan will take care of the insurance and maintenance requirement of the vehicle during the loan period. This Equated Monthly Installment (EMI) facility has been launched in association with TranzLease, an automobile leasing and mobility solutions company.

SMART EMI is a more of a leasing scheme rather than a car loan scheme. Under the scheme, the estimated resale value of the car will be deducted upfront. You will be given the option to either own the car at the end of the tenure by making payment of an agreed resale value or you could simply return the car to the leasing company. If you return the car, ICICI Bank will reward you with special bonus. The amount of ‘SMART EMI’ will be much lower than regular car loan EMI, says ICICI Bank.

Here’s a table that will tell you how you can save using SMART EMI scheme.

Particulars SMART EMI * Traditional Loan *
Tenor of car usage 36 36
EMI that customer pays 32,725/- 40,996/-
Full tenor comprehensive insurance Included Pay separately
Full tenor comprehensive maintenance Included Pay separately
Risk Cover from:
–          Unbudgeted maintenance cost Cover No cover
–          Risk of fluctuation in resale value Full cover No cover
End of tenor options Buy Back / Surrender Sell on your own
Surrender bonus Available Not applicable
Online car lifecycle management Full digital platform Not available

 * Ex-showroom price Rs. 14.22 lakh. Source: ICICI Bank

This scheme will be available for both corporates and salaried individuals. ICICI Bank is planning to roll this out to self-employed customers soon. As a pilot, ICICI Bank has launched the scheme in Mumbai and Delhi-NCR. It will soon be available in Pune, Bengaluru, Hyderabad and Chennai.

Speaking on the launch, Ravi Narayanan, Head – Secured Assets, ICICI Bank said, “A first-of-its-kind innovative financing option developed for the car enthusiasts to help them to take home a car of their choice on lease without having to worry about financing, insurance and maintenance. The choice of car ranges from an array of entry level hatchback to the luxury segment sedans and SUVs. We believe, with introduction of this new proposition, customers will have a unique and hassle-free vehicle purchase experience.”

You can avail of this facility by simply visiting ICICI Bank’s website. Once you visit the site, just select a car of your choice and look at the various EMI options available. You could even compare it with traditional auto loans. After the delivery of the car, you will get access to a personalised car portal through which you can manage the entire car life-cycle from the date of purchase to the date of sale.

Here are simple steps for availing the ‘SMART EMI’ facility

• Visit https://www.icicibank.com/Personal-Banking/loans/car-loan/cl-smart-emi.page?#toptitle and search for the car of your choice
• Check out the various ‘SMART EMI’ options for the chosen car
• Generate a digital brochure instantly
• Compare the ‘SMART EMI’ scheme with loan options
• Select the loan tenure
• Book the car by calling ‘SMART EMI’ customer care at +91 8130680080
• Get online access to the scheme after the car is taken
• The online portal will include cloud repository of all car documents, insurance, maintenance, accident management, referral and points programme.

Looking for pre-approved car loans from ICICI Bank? Then, read this article for more information – ICICI Bank Offers Full Finance For Pre-Approved Car Loans

Kavya Balaji

Kavya Balaji is a senior contributing writer with RupeeIQ. With more than 14 years of experience in the finance space, Kavya loves everything to do with personal finance. She feels financial literacy is important for every household and likes to stick to simple language for explaining personal finance stories. She is a consultant with investment management companies. In spare time, she reads murder mysteries.

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