Car Loan EMI Calculator

Calculate your monthly EMI, total interest and on-road cost for any car loan in India.

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Enter car price above to calculate your EMI

How car loan EMI is calculated

EMI is calculated using the reducing balance method. The interest is charged on the outstanding principal each month.

EMI Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P = Loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months
Example (₹8L, 8.5%, 60 months)
Loan = ₹6,40,000 (after 20% down)
r = 8.5 ÷ 12 ÷ 100 = 0.00708
EMI ≈ ₹13,148/month · Total interest ≈ ₹1,48,880

Tips for getting the best car loan

Negotiate the rate

Banks offer rates from 7.5% to 12%. A difference of 1% on a ₹8L loan over 5 years saves ~₹22,000. Compare online aggregators before visiting the dealer.

Larger down payment

A 30% down payment vs 20% reduces your loan principal by ₹80,000 on a ₹8L car, saving significant interest. Try to put down as much as you can afford.

Watch the tenure

A 7-year loan has a lower EMI but much higher total interest. A 3-year loan costs ₹50,000+ less in interest — if you can afford the higher monthly payment.

Frequently asked questions

What is the typical car loan interest rate in India?

Car loan interest rates in India typically range from 7.5% to 12% p.a. Public sector banks like SBI and Bank of Baroda tend to offer lower rates (7.5–9%), while private banks and NBFCs may charge 9–12%. Your credit score, income, and the car model also affect the rate.

How much down payment is required for a car loan?

Most lenders finance 80–90% of the on-road price, requiring a 10–20% down payment. A higher down payment reduces your EMI and total interest. Some banks offer 100% financing for salaried individuals with excellent credit scores.

What is the maximum tenure for a car loan?

Car loan tenure in India typically ranges from 12 to 84 months (1–7 years). The most common tenure is 60 months (5 years). Longer tenures reduce the EMI but significantly increase total interest paid.

What documents are needed for a car loan?

Typically: identity proof (Aadhaar/PAN), address proof, income proof (salary slips/ITR for 2 years), 6 months bank statements, and the vehicle proforma invoice. Self-employed individuals need additional documents like business proof and GST returns.

Can I prepay my car loan without penalty?

RBI guidelines prohibit foreclosure charges on floating-rate loans. For fixed-rate car loans, banks may charge 2–6% of the outstanding principal as foreclosure fee. Check your loan agreement. Partial prepayment is usually allowed and can significantly reduce total interest.