Calculate your car loan EMI
Monthly EMI
₹10,500.93
Principal
₹5,00,000
79.4%
Interest
₹1,30,056
20.6%
Total Payment
₹6,30,056
Total
₹6,30,056
79.4%
20.6%
| Year | Principal | Interest | Total Payment | Balance |
|---|---|---|---|---|
| Year 1 | ₹82,022 | ₹43,990 | ₹1,26,011 | ₹4,17,978 |
| Year 2 | ₹90,162 | ₹35,849 | ₹1,26,011 | ₹3,27,817 |
| Year 3 | ₹99,110 | ₹26,901 | ₹1,26,011 | ₹2,28,706 |
| Year 4 | ₹1,08,947 | ₹17,064 | ₹1,26,011 | ₹1,19,759 |
| Year 5 | ₹1,19,759 | ₹6,252 | ₹1,26,011 | ₹0 |
| Total | ₹5,00,000 | ₹1,30,056 | ₹6,30,056 | - |
Planning to buy a new car? Use our free Car Loan EMI Calculator to estimate your monthly payments and plan your finances better.
A Car Loan is a secured loan that helps you finance the purchase of a new or used car. The vehicle itself serves as collateral, which is why interest rates are typically lower than personal loans. You can borrow up to 90% of the car's on-road price and repay over 1-7 years.
Car loans come with competitive interest rates starting from around 8% p.a. for new cars and slightly higher for used cars. Most banks and financial institutions offer flexible repayment options with minimal documentation.
Your Car Loan EMI depends on these main factors:
Car Loan EMI is calculated using this standard formula:
EMI = [P × R × (1 + R)^N] / [(1 + R)^N – 1]
Where:
8.65% - 9.15% p.a.
Processing Fee: ₹1,500
8.75% - 14.50% p.a.
Processing Fee: ₹2,500
8.90% - 14.50% p.a.
Processing Fee: ₹2,000
8.99% - 15.50% p.a.
Processing Fee: ₹3,000
9.25% - 15.50% p.a.
Processing Fee: ₹3,500
8.60% - 9.60% p.a.
Processing Fee: ₹1,000
Get your EMI calculation in milliseconds with precise formulas
Try different combinations of amount, rate, and tenure to find the best deal
Know exactly how much you need to set aside each month for EMI
View detailed breakdown of principal vs interest over the loan tenure
Rates vary between banks - compare before applying
If you have good credit score, negotiate for discounts
Shorter tenure = lower interest but higher EMI
Higher down payment reduces your loan burden
Look for processing fees, prepayment penalties
A Car Loan EMI Calculator is a free online tool that helps you calculate the monthly payment amount for your car loan. It considers the principal loan amount, interest rate, and tenure to give you accurate EMI calculations.
The minimum down payment for car loans in India typically ranges from 10% to 30% of the car's on-road price. Most lenders require at least 10% as down payment.
Car loan interest rates in India range from 8% to 15% p.a. depending on the lender, your credit score, and whether the car is new or used. New cars usually get lower rates than used cars.
Yes, most banks and NBFCs allow prepayment of car loans. However, some lenders charge a prepayment penalty of 2-5% on the outstanding principal. Check the terms before applying.
Car loan tenure typically ranges from 1 to 7 years (12 to 84 months). Some lenders may offer up to 10 years for premium cars.
Total interest is calculated by subtracting the principal loan amount from the total payment over the loan tenure. Total Payment = EMI × Number of Months. Total Interest = Total Payment - Principal Amount.
Yes, taking a car loan affects your credit score. Timely payments improve your score, while missed payments or defaulting can significantly damage it. A car loan, being a secured loan, can help build your credit history if managed properly.
Use our free Car Loan EMI Calculator to plan your finances and make informed decisions. Compare different loan offers and choose the one that best fits your budget and requirements.