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
Enter the rate from your lender's quote. Used-car loans are usually priced higher than new-car loans.
Choose between 1 to 7 years (3-5 years recommended)
Monthly EMI
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On-Road Price
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Loan Amount
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Total Interest
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Total Months
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Down Payment %
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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.
A car loan rate depends on the lender, your credit score, your income and employment type, the loan amount and the loan-to-value ratio. Ask whether the quoted rate is fixed for the whole tenure or floating. A floating rate moves with the lender's benchmark, while a fixed rate gives a predictable EMI.
Used-car loans usually cost more than new-car loans because the car is worth less as security and its value is harder for the lender to judge. Older cars and longer tenures tend to push the rate up further.
Lenders revise rates often and run festive or dealer-linked offers, so compare current written quotes from two or three lenders rather than relying on a published table, including older versions of this page.
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!
| 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 |
| 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.) |
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!
| What to check | Why it matters |
|---|---|
| Rate type and tenure | A fixed rate keeps the EMI steady. A longer tenure lowers the EMI but raises the total interest, so check both numbers. |
| Processing and documentation fees | Charged once, usually with GST on top. Add them to the cost of the loan when comparing offers. |
| Prepayment and foreclosure charges | RBI rules bar prepayment penalties on floating-rate loans taken by individuals for non-business purposes. Fixed-rate car loans can carry a foreclosure charge, so read the terms if you plan to close early. |
| Amount financed | Lenders fund a share of the on-road or valuation price. A larger down payment lowers both the EMI and the total interest. |
| Dealer-arranged offers | Low or zero-interest schemes are sometimes paid for through a higher car price or fewer discounts. Compare the final on-road price with and without the scheme. |
| Bundled add-ons | Check whether insurance, extended warranty or accessories have been added to the loan amount, since you pay interest on them too. |
General guidance as of October 2026. Confirm current rates and charges with the lender.
| Loan Amount | 3 Years Tenure | 5 Years Tenure | 7 Years Tenure |
|---|---|---|---|
| ₹5 Lakhs | ₹16,016 | ₹10,501 | ₹8,192 |
| ₹8 Lakhs | ₹25,626 | ₹16,802 | ₹13,107 |
| ₹10 Lakhs | ₹32,033 | ₹21,002 | ₹16,384 |
| ₹15 Lakhs | ₹48,049 | ₹31,503 | ₹24,575 |
| ₹20 Lakhs | ₹64,065 | ₹42,004 | ₹32,767 |
Linked to bank's repo rate (RLLR)
Remains constant throughout tenure
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.
The rules and rates used on this page come from these official bodies. Rates and limits change, so confirm the current figure on the official site before you act on a number here.