ICICI is the first private bank in the country to offer both floating and fixed rate on car loans, commercial vehicle loans, construction equipment loans and professional equipment loans.

The floating rate is linked to the Floating Reference Rate (FRR), the benchmark used by the bank for pricing floating rate loans to its retail customers, bank said in a statement.

"With floating rate loans we are taking another step in the direction of providing innovative solutions to the customer. We expect floating rate loans to appeal to customers who hold a positive outlook on the interest rates," Vehicle Loans Head N R Narayanan said.

Also, in the auto loan market, the customer rates vary as at times there are special incentives and discounts available from the manufacturers, or dealers and finance commission, the bank stated.