During financing period, the car loan scheme will take care of the vehicle’s insurance and maintenance requirement


Image: ICICI Headquarters in Bandra kurla, Mumbai, India. Photo: courtesy of Sumedh~commonswiki/Wikipedia.

Indian banking and financial services company ICICI Bank has collaborated with automobile leasing & mobility solutions company, TranzLease to introduce a new car equated monthly instalment (EMI) scheme.

The new next-gen auto facility, named SMART EMI, is designed to take care of the insurance and maintenance requirement of the customer’s vehicle during their financing period.

Additionally, the new EMI provides customers with an option to either return the car to the leasing company or own the car at the end of the tenure by paying an agreed resale value.

In case of returning the car, a special bonus will be rewarded to the customers, the bank noted.

ICICI, in a statement, said: “The amount of ‘SMART EMI’ is much lower than regular car loan EMI as the estimated resale value of the car is deducted upfront.”

Claimed to offer lower EMI compared to that of a regular car loan EMI, the SMART EMI eliminates the unbudgeted and unexpected expenses for customers.

TranzLease MD and CEO Anindya Chakraborty said: “In today’s age where consumers want a car but uneasy about the associated hassles, risks, costs of ownership, ‘SMART EMI’ comes as a solution that allows the love of car without the chaos.”

SMART EMI currently available in Mumbai and Delhi-NCR regions

Currently available for both corporates and salaried individuals in Mumbai and Delhi-NCR regions, the offering is planned to be made available for self-employed customers and in other regions such as Pune, Bengaluru, Hyderabad and Chennai, in near future.

Said to be the first of its kind in the country, the SMART EMI will be offered to the cars of almost all manufacturers.

ICICI Bank secured assets head Ravi Narayanan said: “It marks the Bank’s entry into this burgeoning car financing segment. We are pleased to offer this specialised and unique experience to the car enthusiasts and are happy to introduce ‘SMART EMI’ facility.

“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.”

Recently, ICICI Bank has launched an improved version of its ‘ICICI Bank Student Travel Card’, to offer additional benefits to the students.