Calculate your monthly car loan EMI and total interest cost in seconds.
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Car loans depreciate quickly relative to the asset financed, so it's worth keeping the tenure shorter where your budget allows — a 7-year car loan can mean paying significant interest on a vehicle that's lost much of its value well before the loan is paid off.
Car loans in India usually range from 1 to 7 years. Shorter tenures mean higher EMIs but lower total interest; longer tenures reduce the EMI but increase total interest paid.
Most lenders finance 80-90% of the car's on-road price, meaning you typically need to arrange 10-20% as a down payment, though this varies by lender and your credit profile.
Car loans for personal use generally do not offer tax benefits in India. However, if the vehicle is used for business purposes, interest paid may be claimed as a business expense — consult a tax professional for your specific situation.
Yes, used car loans typically carry higher interest rates than new car loans, often by 2-4 percentage points, since the collateral (the vehicle) depreciates faster and carries more risk for the lender.
Most lenders allow prepayment after a minimum lock-in period (often 6-12 months), though some charge a prepayment penalty. Check your loan agreement for specific terms before planning a prepayment.
A car loan EMI depends on the loan amount (vehicle price minus down payment), the interest rate your lender offers, and the repayment tenure you choose. This calculator lets you experiment with all three to find an EMI that comfortably fits your monthly budget.
Since car loan interest rates and terms vary noticeably between banks and NBFCs, use this calculator to compare offers side by side before signing a loan agreement. Pair it with our Loan Eligibility Calculator to check how much you can comfortably borrow given your income.
