🚗 Car Loan Amortization Schedule
Interest rate range: 8.75% - 12.50% p.a. - Tenure: 1 - 7 years
Monthly EMI
Rs. 16,607
Rs. 8.00 lakh at 9%
Total Interest
Rs. 1.96 lakh
5 year term
Total Repayment
Rs. 9.96 lakh
Principal + Interest
Adjust to your loan details
Loan type
Monthly EMI
₹16,607
Total Interest
₹1.96 L
19.71% of total
Total Repayment
₹9.96 L
Break-even Year
Year 1
principal > interest
Amortization Schedule
60 EMIs total
Principal vs Interest paid each year
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance | % Paid |
|---|---|---|---|---|---|
| 1break-even | ₹8 L | ₹1.33 L | ₹66,616 | ₹6.67 L | 17% |
| 2 | ₹6.67 L | ₹1.45 L | ₹54,171 | ₹5.22 L | 35% |
| 3 | ₹5.22 L | ₹1.59 L | ₹40,559 | ₹3.64 L | 55% |
| 4 | ₹3.64 L | ₹1.74 L | ₹25,670 | ₹1.90 L | 76% |
| 5 | ₹1.90 L | ₹1.90 L | ₹9,384 | ₹0 | 100% |
Inside a Rs. 8.00 lakh car loan at 9%
Interest paid in Year 1
Rs. 66,616
33% of the year's EMIs
Principal repaid in Year 1
Rs. 1.33 lakh
67% of the year's EMIs
Principal overtakes interest
Month 1
from the start
This worked example uses the current typical market rate of 9% for a car loan over 5 years, computed from the full amortization schedule. Total interest over the term is Rs. 1.96 lakh — about 25% of the Rs. 8.00 lakh borrowed. Because interest is front-loaded, the principal portion of your EMI only overtakes the interest portion from the very first EMI, so prepaying in the early years has an outsized effect.
Car Loan EMI and total interest by loan amount
| Loan Amount | Monthly EMI | Total Interest | Total Repayment |
|---|---|---|---|
| Rs. 4.00 lakh | Rs. 8,303 | Rs. 98,180 | Rs. 4.98 lakh |
| Rs. 6.00 lakh | Rs. 12,455 | Rs. 1.47 lakh | Rs. 7.47 lakh |
| Rs. 8.00 lakh (this page) | Rs. 16,607 | Rs. 1.96 lakh | Rs. 9.96 lakh |
| Rs. 10.00 lakh | Rs. 20,758 | Rs. 2.45 lakh | Rs. 12.45 lakh |
| Rs. 15.00 lakh | Rs. 31,138 | Rs. 3.68 lakh | Rs. 18.68 lakh |
All rows assume 9% for 5 years. EMI and interest scale in direct proportion to the loan amount — a Rs. 15.00 lakh car loan costs about Rs. 31,138/month versus Rs. 8,303/month for Rs. 4.00 lakh. Enter your exact amount, rate, and tenure in the calculator above for a precise month-by-month schedule.
Typical car loan rate & tenure
Car Loan interest rates in India typically sit at 8.75% - 12.50% p.a., with a mid-market reference rate of about 9% used for the figures on this page. Tenures usually run 1 - 7 years. A longer tenure reduces the monthly EMI but increases the total interest, while a shorter tenure does the opposite — pick the shortest tenure your monthly budget comfortably supports.
Car Loan - Key Facts
- -Typically 80-90% of car's on-road price is financed
- -Fixed interest rate - EMI stays constant throughout
- -No prepayment penalty for most banks after 6 months
- -New car loans have lower rates than used car loans
- -Depreciation reduces car value faster than loan balance in first 2 years
Tax Benefit
No direct tax benefit for personal car loans. Business car loans can claim depreciation.
Frequently Asked Questions
What is the EMI on a Rs. 8.00 lakh car loan at 9%?▾
A Rs. 8.00 lakh car loan at 9% p.a. for 5 years has a monthly EMI of Rs. 16,607. Over the full term you repay Rs. 9.96 lakh — the Rs. 8.00 lakh principal plus Rs. 1.96 lakh in interest.
How much of the first year goes to interest on a car loan?▾
In year 1 of this Rs. 8.00 lakh car loan, about Rs. 66,616 of your EMIs goes to interest and only Rs. 1.33 lakh reduces the principal — roughly 33% interest. This front-loading is why the outstanding balance falls slowly at the start and prepaying early saves the most.
When does the principal overtake interest on a car loan?▾
For this Rs. 8.00 lakh car loan at 9%, the principal portion of the EMI first exceeds the interest portion from the very first EMI. Before that crossover, more than half of every EMI is interest.
What is the total interest on a Rs. 8.00 lakh car loan?▾
At 9% over 5 years, the total interest on a Rs. 8.00 lakh car loan is about Rs. 1.96 lakh — roughly 25% of the amount borrowed. A shorter tenure or any prepayment cuts this figure sharply.
How does the EMI change with the loan amount for a car loan?▾
EMI scales in direct proportion to the loan amount at a given rate and tenure. At 9% for 5 years, a Rs. 4.00 lakh car loan costs about Rs. 8,303/month while a Rs. 15.00 lakh one costs about Rs. 31,138/month. See the by-amount table above for the full range.
What is the typical tenure for a car loan?▾
Car Loan tenures in India typically run 1 - 7 years. A longer tenure lowers the EMI but raises the total interest paid; the schedule and figures on this page assume 5 years.
What is the current car loan interest rate?▾
Car Loan interest rates currently range from 8.75% - 12.50% p.a. depending on the lender, loan amount, tenure, and your credit score. Major lenders include SBI, HDFC Bank, ICICI Bank, Bank of Baroda, Axis Bank. Check the current rate directly with your lender before applying.
Is there a tax benefit on a car loan?▾
No direct tax benefit for personal car loans. Business car loans can claim depreciation.