Car Loan EMI Calculator

Car loan EMI is the fixed monthly instalment you pay to repay your vehicle loan. It includes both principal repayment and interest. The EMI amount depends on the loan amount (usually 80-90% of car price), interest rate, and chosen tenure.

Car loan interest rates in India range from 7.5% to 14% per annum. New car loans are cheaper (7.5%-10%) than used car loans (10%-16%). Banks like SBI, HDFC, and ICICI offer the best rates for new cars if you have a CIBIL score of 750+.

Most banks finance 80-90% of the on-road price for new cars and 60-75% for used cars. So for a ₹10 lakh car, you need a minimum down payment of ₹1-2 lakh. A larger down payment reduces your EMI and total interest paid.

A 3-year car loan has higher EMI but saves significantly on interest. For a ₹8 lakh loan at 9%, the 3-year EMI is ₹25,433 (total interest: ₹1.16L), while 5-year EMI is ₹16,607 (total interest: ₹1.96L). You save ₹80,000 by choosing 3 years. Most financial advisors recommend not exceeding 5 years for car loans.

Yes, but at higher interest rates. Most banks need 700+ for car loans. NBFCs like Mahindra Finance and Shriram Finance may approve at 650+ but charge 2-4% higher interest. Improving your CIBIL to 750+ before applying can save you lakhs over the loan tenure.

New car loans can have tenure up to 7 years (84 months), though most banks offer up to 5-6 years. Used car loans are limited to 3-5 years depending on the car age. The car age + loan tenure usually cannot exceed 8-10 years.

Car loan EMIs are NOT tax deductible for personal use vehicles. However, if the car is used for business purposes and is registered in the business name, the interest component can be claimed as a business expense under the Income Tax Act.

Bank loans are almost always cheaper than dealer-arranged financing. Dealers often add 1-2% markup to the interest rate as their commission. Get a pre-approved car loan from your bank before visiting the showroom — this also gives you better negotiating power on the car price.