🚗 Car Loan EMI Calculator India 2025

🏠

Home Loan

8.40–10.5%

🚗

Car Loan

7.99–12%

💳

Personal

10.5–24%

🎓

Education

8.15–15%

Loan Amount

₹

Down Payment optional

₹

Interest Rate

8.50%

Tenure

20 yrs

Processing Fee optional

True Cost (with fee)

Enter % above to see true cost

Processing Fee optional

₹

Monthly Salary take-home

₹

Monthly EMI

—

📅 Tenure Comparison

🏦 Bank Rate Comparison 2025-26

* Indicative rates. Actual depends on credit score and profile.

💰 Prepayment Simulator

Enter any extra monthly payment — see exact interest saved and time cut.

Extra payment per month

₹

Without prepayment—

With prepayment—

⏱ Time saved—

💰 Interest saved —

📊 Payment Breakdown

⭐ CIBIL Score → Interest Rate Guide

Your credit score directly affects the rate you get. Here's what each score range means for your EMI:

💹 Invest While You Repay

Even ₹2,000/month in SIP alongside your EMI builds serious wealth. Start on Groww — India's most trusted platform.

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About This Calculator

Planning to buy a new car? Use this free car loan EMI calculator to know your exact monthly instalment before stepping into a dealership. Enter the on-road price minus your down payment, the bank's interest rate, and your preferred tenure.

In India, car loans typically range from ₹2 lakh (entry hatchback) to ₹30 lakh+ (premium sedan/SUV). Most banks finance 80–90% of the on-road price for a tenure of 1–7 years.

📊 Car Loan EMI — Real Example (₹7 Lakh, 7 Years)

Meet Priya, 28, a marketing executive in Pune earning ₹8 LPA. She wants to buy a Maruti Suzuki Brezza (on-road ₹12.5 lakh). She's paying ₹3 lakh as down payment and financing ₹9.5 lakh... wait, let's use ₹7 lakh on a mid-range car at 8.80%.

Bank	Rate (2025-26)	EMI (7 yr)	Total Interest
SBI Car Loan	8.75%	₹10,930	₹2.18 lakh
HDFC Car Loan	8.80%	₹10,953	₹2.20 lakh
ICICI Car Loan	9.00%	₹11,044	₹2.28 lakh
Axis Bank	9.25%	₹11,159	₹2.37 lakh
Kotak Bank	8.90%	₹10,999	₹2.24 lakh

Tip: Always negotiate the rate. A 0.25% difference on ₹7 lakh over 7 years saves ₹6,000–8,000. Dealers often have bank tie-ups with negotiated rates — ask explicitly.

💡 5 Smart Tips Before Taking a Car Loan in India

Pay 20–30% down: Higher down payment = lower principal = lower EMI and less total interest. For a ₹10L car, ₹2L down vs ₹1L down saves ~₹1,200/month.
Shorter tenure = less interest: 5-year loan vs 7-year loan on ₹8L saves ₹1.2 lakh in interest, but EMI is ₹2,200 higher. Find your balance.
Check processing fee: Some banks charge 1–2% as processing fee. On ₹8L that's ₹8,000–16,000 upfront — factor this into total cost.
Compare dealer financing: Manufacturer schemes (Maruti Finance, Hyundai Finance) sometimes offer lower rates during festive season — check against banks.
Used car loans cost more: Used car loan rates are 2–4% higher than new car loans. Factor this when comparing new vs used.

📋 Car Loan EMI Table (8.80%, Various Amounts & Tenures)

Loan Amount	3 Years	5 Years	7 Years
₹3 lakh	₹9,511	₹6,222	₹4,726
₹5 lakh	₹15,851	₹10,370	₹7,877
₹7 lakh	₹22,192	₹14,518	₹11,027
₹10 lakh	₹31,703	₹20,740	₹15,753
₹15 lakh	₹47,554	₹31,110	₹23,630
₹20 lakh	₹63,405	₹41,480	₹31,506

Frequently Asked Questions

What is the EMI on a ₹10 lakh car loan for 7 years? ▼

At 8.80% interest rate, the EMI on a ₹10 lakh car loan for 7 years is approximately ₹15,753 per month. Total interest paid over 7 years is about ₹3.23 lakh.

Which bank gives the lowest car loan interest rate in India? ▼

SBI currently offers car loan rates starting at 8.75% p.a. for new cars, making it one of the lowest. HDFC Bank, ICICI Bank, and Kotak Bank also offer competitive rates. Rates vary based on your CIBIL score and loan amount.

Can I get a 0% car loan in India? ▼

Zero-interest car loans are promotional offers from manufacturers (not banks). They typically come with hidden costs — no discount on the car price, mandatory accessories, or higher insurance. Calculate the true cost before accepting.

What documents are needed for a car loan in India? ▼

You typically need: KYC documents (Aadhaar, PAN), income proof (last 3 months salary slips + Form 16), bank statements (6 months), and the car's proforma invoice from the dealer.

What is the maximum car loan tenure in India? ▼

Most banks offer car loan tenure up to 7 years (84 months). Some banks like SBI and HDFC also offer 8-year tenure for higher loan amounts above ₹15 lakh.

How much car loan can I get on my salary? ▼

As a rule of thumb, your total EMI (all loans) should not exceed 40–50% of your net monthly salary. On ₹40,000 net salary, you can afford ₹15,000–20,000 EMI, which qualifies you for a ₹8–10 lakh car loan over 7 years.