Car Loan EMI Calculator

Calculate your car loan EMI, on-road price, and total cost. Get accurate estimates for new and used car loans from all major Indian banks.

Price of the car before taxes and registration

Minimum 10% for new, 25% for used cars recommended

New car: 7.6%-12% | Used car: 12%-16% (2024-2025)

Choose between 1 to 7 years (3-5 years recommended)

Additional Costs (Optional)

Understanding Car Loans in India

What is a Car Loan?

A car loan (also called auto loan or vehicle loan) is a secured loan provided by banks and NBFCs to help you purchase a new or used car. You repay the loan through fixed monthly installments (EMIs) over 1-7 years. Banks typically finance 80-90% of the on-road price for new cars and 65-75% for used cars.

Current Interest Rates (2024-2025)

New Car Loans

8.70% - 12.00%

SBI: 9.20% | HDFC: 9.90% | ICICI: 10.75%

Used Car Loans

12.00% - 16.00%

Varies by car age (0-3 yrs: 12-13% | 3-5 yrs: 14-16%)

Rates vary by credit score, loan amount, and lender. Good credit (750+) can save 1-2% on interest!

Real-Life Examples

First-Time Buyer - Hatchback

Car: Maruti Swift (Ex-showroom: ₹8 Lac, On-road: ₹9.2 Lac)

Loan: ₹7.36 Lac at 9.5% for 5 years (20% down payment)

Monthly EMI: ₹15,498 | Total Interest: ₹1.93 Lac

Tip: Choose 3-year tenure (EMI: ₹23,453) to save ₹72,000 in interest!

Upgrading Family - SUV

Car: Hyundai Creta (Ex-showroom: ₹15 Lac, On-road: ₹17.5 Lac)

Loan: ₹12 Lac at 10% for 5 years (30% down payment)

Monthly EMI: ₹25,485 | Total Interest: ₹3.29 Lac

Smart Move: 30% down payment saves ₹1.4 Lac vs 10% down payment!

Budget Buyer - Used Car

Car: 3-year-old Honda City (Price: ₹7 Lac)

Loan: ₹5.25 Lac at 13% for 4 years (25% down payment)

Monthly EMI: ₹13,989 | Total Interest: ₹1.47 Lac

Caution: Used car rates are 3-4% higher. Check car condition thoroughly!

Understanding On-Road Price Components

Component Typical % Example (₹10L Car) Notes
Ex-Showroom Price Base ₹10,00,000 Price before taxes
Road Tax/RTO 5-20% ₹1,00,000 Varies by state (Delhi: 10%, Maharashtra: 13-18%)
Insurance (1st Year) 1.5-3% ₹25,000 Comprehensive coverage mandatory
Registration & Misc 1-1.5% ₹12,000 Number plate, handling, etc.
Total On-Road Price ~115-125% ₹11,37,000 Actual amount you pay

New Car vs Used Car Loan Comparison

Feature New Car Loan Used Car Loan
Interest Rate 8.70% - 12% 12% - 16%
Loan Amount Up to 90% of on-road price Up to 70-75% of car value
Maximum Tenure 7 years 5 years (depends on car age)
Processing Fee 2.5% - 4% 3% - 5%
Documentation Standard Extensive (valuation, RC check, etc.)

Smart Car Loan Strategies

Higher Down Payment

Pay 25-30% upfront instead of minimum 10-15%. Reduces EMI burden and saves ₹50K-1L in interest for a ₹10L car!

Shorter Tenure

Choose 3-4 years over 6-7 years. Cars depreciate fast - don't pay for a car longer than it's worth!

Compare Rates

1% difference on ₹5L loan = ₹15,000 extra over 5 years. Shop around for best rates!

Improve Credit Score

750+ score gets 1-2% lower rates. Pay credit card bills on time for 6 months before applying!

Important Things to Remember

  • Cars are depreciating assets - They lose 15-20% value in first year, 50% in 3 years
  • Insurance renewal costs - Budget ₹15K-20K annually after 1st year
  • Maintenance costs increase - After warranty (3-5 years), service costs rise significantly
  • Fuel + maintenance - Budget ₹3K-8K monthly depending on usage
  • Avoid 7-year loans - You'll be underwater (owe more than car's worth) after 4 years
  • Rule of thumb - Car loan EMI should not exceed 15% of monthly income

Important Disclaimer

For Informational Purposes Only: This calculator provides estimates based on the inputs you provide. Actual loan terms, EMI amounts, interest rates, on-road prices, and additional charges may vary based on lender policies, location, dealer charges, and current regulations.

Not Financial/Legal Advice: The information and calculations provided here are NOT professional financial or legal advice. Do not make vehicle purchase or financing decisions based solely on these calculations.

Consult Professionals: Always consult with certified financial advisors and dealers for actual quotes before making any car loan or vehicle purchase decisions.

On-Road Price Variations: RTO charges, road tax, and insurance costs vary significantly by state, city, vehicle type, and individual circumstances. The calculations provided are estimates only.

No Liability: QuickTools India assumes no responsibility for any financial decisions or actions taken based on the calculations or information provided on this tool.