🚗

Car Loan EMI Calculator

Calculate car loan EMI for any vehicle price with current auto loan interest rates.

₹1,000₹100.00 Cr
1.00%36.00%
1 mo30 yr
Loan starts:First EMI: May 2026

Monthly EMI

₹14,531

Total Payment

₹8.72 L

Total Interest

₹1.72 L

Principal

80.29%

Interest

19.71%

Principal
Interest

Total EMIs

60

Loan closes

Apr 2031

Break-even

Year 1

Interest : Principal

19.71% : 80.29%

About Car Loan EMI Calculator

Car loan interest rates in India range from 8.5%–12% depending on the vehicle type (new/used), loan tenure, and your credit score. New car loans typically get better rates than used car loans. Banks finance up to 90% of the on-road price; ex-showroom price is used for rate calculation.

Related Calculators

Frequently Asked Questions

What is the current car loan interest rate in India?

New car loan rates range from 8.5% (SBI, HDFC for top-rated borrowers) to 10.5% for average profiles. Used car loans are typically 1–3% higher. NBFCs like Bajaj Finance and Mahindra Finance offer fast approvals but at slightly higher rates (11–14%).

How much car loan can I get on a 60,000 salary?

With 60,000 net monthly income and no existing EMIs, most banks approve car loans of 5–8 lakh for a 5-year tenure. Loan-to-Value (LTV) is capped at 85–90% of the on-road price, so you need to arrange the remaining 10–15% as a down payment.

Should I choose 3, 5, or 7 years for a car loan?

A 5-year tenure is the sweet spot for most buyers - EMI is manageable and total interest is reasonable. 7-year tenures reduce EMI but you may end up owing more than the car's resale value (negative equity) in the first 2–3 years, which can be a problem if you want to sell early.

Is it better to pay cash or take a car loan for a new car?

If your savings earn less than the car loan rate (8.5–10%), pay cash. If they earn more (e.g., equity SIP at 12%+), taking a loan and keeping the cash invested makes financial sense. Factor in the peace of mind of owning the car outright vs the opportunity cost of the cash.

What is the difference between on-road price and ex-showroom price for car loans?

Ex-showroom price is the manufacturer's listed price. On-road price includes registration, insurance, and accessories and is typically 10–15% higher. Banks lend a percentage of the on-road price. Always calculate your down payment based on on-road price, not ex-showroom.

Does a car loan affect my CIBIL score?

Yes - timely car loan EMIs build your credit history and improve your CIBIL score over time. Missing even one EMI drops your score by 50–100 points and stays on your report for 3 years. A car loan is also useful for first-time borrowers to establish a credit history.