Car Loan EMI Calculator
Calculate your car loan EMI, total cost and ownership estimate
About Car Loans in India
- New car loan rates: Typically 8-12% p.a. depending on bank and borrower profile
- Used car loan rates: Typically 12-18% p.a. — higher due to higher risk
- Loan-to-Value: Banks typically finance 80-100% of on-road price for new cars, 70-80% for used cars
- Tenure: Maximum 7 years for new cars, 5 years for used cars
- No tax benefit: Car loans for personal use do NOT qualify for any tax deduction under the Income Tax Act
- Business use: If car is used for business, interest can be claimed as business expense and depreciation is available
- Processing fee: Usually 0.5-2% of loan amount
- Foreclosure: No penalty for floating rate loans (RBI rule); fixed rate loans may charge 2-4%
About Car Loan EMI Calculator
The Car Loan EMI Calculator computes the monthly EMI for new and used car loans, helping you plan your vehicle purchase within budget. Current car loan interest rates range from 8.7% to 11.5% for new cars and 10.5% to 15% for used cars. The calculator shows the total cost of the loan including interest, down payment requirements, and helps compare offers from different banks and NBFCs.
Car loans typically have tenures of 3-7 years with loan-to-value ratios of 80-100% for new cars and 70-85% for used cars. The EMI depends on the loan amount, interest rate, and tenure — a longer tenure reduces EMI but increases total interest. Our calculator also factors in processing fees, insurance costs, and provides an amortization schedule showing how each EMI is split between principal and interest repayment.
Key Features
- EMI for new and used car loans
- Down payment and loan-to-value computation
- Total cost of loan with interest and fees
- Amortization schedule generation
- Bank-wise rate comparison
Frequently Asked Questions
What is the interest rate for car loans in India?
As of 2026, car loan interest rates in India range from 8.7% to 11.5% for new cars and 10.5% to 15% for used cars, depending on the lender, borrower profile, and vehicle type. SBI offers rates starting from 8.7%, while private banks and NBFCs may charge higher. Pre-approved customers and those with high CIBIL scores get the best rates.
How much down payment is required for a car loan?
For new cars, most banks finance 80-100% of the on-road price, meaning down payment can be as low as zero for eligible borrowers. For used cars, banks typically finance 70-85% of the valuation, requiring 15-30% down payment. However, a larger down payment reduces your EMI burden and total interest cost significantly.
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