Find your monthly car loan EMI, total interest payable and full amortisation schedule for new or used vehicles.
Pay at least 20% down to keep EMI manageable, reduce interest and avoid being "underwater" (loan > car value) if you sell early.
A 3-year loan saves significant interest vs 5 years. Your car depreciates faster than you repay - keep tenure ≤ 60 months.
HDFC, SBI, ICICI, Axis, dealer financing - rates vary 0.5–2%. Get at least 3 quotes. Even 0.5% savings on a ₹6L loan = ₹8,000+ over 5 years.
Loan is on on-road price (ex-showroom + RTO + insurance). Request itemised on-road quote; some dealers add margin in "accessories" not on official list.
India is the third-largest automobile market in the world and became the third-largest passenger vehicle market globally in 2023, surpassing Japan according to the Society of Indian Automobile Manufacturers (SIAM). Over 70% of new car purchases in India are financed through auto loans, primarily from banks like SBI, HDFC Bank, ICICI Bank, and Axis Bank, as well as NBFCs such as Bajaj Finance and Mahindra Finance. A car loan EMI (Equated Monthly Instalment) depends on three factors - the principal amount borrowed, the annual interest rate, and the loan tenure. This calculator applies the standard reducing-balance EMI formula used by all RBI-regulated lenders.
As of 2024, car loan interest rates in India typically range from 8.5% to 14% per annum depending on the lender, borrower credit score, vehicle type, and down payment. Loan tenures range from 12 to 84 months (7 years), with 5 years being the most common choice. A higher down payment reduces both EMI and total interest outgo significantly. For instance, on a Rs. 8 lakh loan at 10% for 5 years, the EMI works out to approximately Rs. 17,000 per month, with total interest of around Rs. 2.2 lakh over the entire term.
Beyond EMI, car buyers should budget for RTO registration fees (6-20% of vehicle value depending on state), comprehensive insurance (typically 2-4% of IDV annually), and road tax. Some states like Kerala and Maharashtra levy higher road taxes than others. Processing fees charged by lenders typically range from 0.5% to 2% of loan amount and should be included in the true cost-of-ownership calculation.