ICICI Bank, Axis cut car loan rates for new customers

The competition in the car loan market is hotting up with ICICI Bank, country's largest private sector lender and Axis Bank slashing their car loan rates for new customers.

The competition in the car loan market is hotting up with ICICI Bank, country's largest private sector lender and Axis Bank slashing their car loan rates for new customers.

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While ICICI Bank has cut its car loan rates by 0.25-0.5 per cent depending upon the size and tenure of the loan, Axis Bank today announced a reduction of 0.5-0.75 per cent for loans having 3-5 years maturity for new customers.

"ICICI Bank has cut its car loan rates by 0.25-0.5 per cent to 9.5-11.5 per cent, depending upon the category and tenure of loans," a source close to the development told PTI.

Confirming the move, an ICICI spokesperson said,"Our auto rates are in line with competition."

Prior to this, the bank had revised its rates downwards in October last year as part of a festive offer.

The reduction in car loan rates by biggies like ICICI Bank and Axis are likely to put pressure on other banks to follow the suit in the near future.

"Based on customer research and interactions as well as market feedback we feel that this is the appropriate time to offer the new rates for our customers," Axis Bank's President-Retail Banking, Manju Srivatsa said.