Calculate your car loan EMI, total interest and full repayment schedule. Compare different tenures to find the most affordable option.
Monthly EMI
₹16,801
Total Interest
₹2.08 L
Total Payment
₹10.08 L
Tenure
60 months
Principal vs Interest
Personalised EMI for ₹8.0L over 60 months. Rates as of May 2026.
| Bank / NBFC | Interest Rate | Your EMIat starting rate | Monthly Savings | |
|---|---|---|---|---|
PNB Punjab National Bank BESTLowest starting rate | 7.60%p.a. | ₹16,068/month | + ₹636/mo₹38,131 total | Apply |
BoB Bank of Barodaup to 11.35% | 7.60%p.a. | ₹16,068/month | + ₹636/mo₹38,131 total | Apply |
KMB Kotak Mahindra Bankup to 14% | 8.25%p.a. | ₹16,317/month | + ₹387/mo₹23,215 total | Apply |
SBI State Bank of IndiaIndia's largest bank | 8.65%p.a. | ₹16,471/month | + ₹233/mo₹13,968 total | Apply |
HDF HDFC Bankup to 10% | 8.95%p.a. | ₹16,587/month | + ₹117/mo₹6,998 total | Apply |
ICI ICICI Bankup to 14% | 8.95%p.a. | ₹16,587/month | + ₹117/mo₹6,998 total | Apply |
AXS Axis Bankup to 13.5% | 9.15%p.a. | ₹16,665/month | + ₹39/mo₹2,336 total | Apply |
TAT Tata Capitalup to 15% | 9.25%p.a. | ₹16,704/month | Lowest Rate 🏆 | Apply |
Rates shown are indicative starting rates (best-case, salaried applicants). Actual rate depends on credit score & eligibility. Affiliate links — we may earn a commission at no cost to you.
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A longer tenure lowers the EMI but sharply increases total interest. On an ₹8L car loan, stretching from 3 to 7 years cuts the EMI by ₹12,568/month but costs ₹1.55L more in interest — and you stay in debt while the car keeps depreciating.
| Tenure | Monthly EMI | Total Interest | Total Payment | Interest as % of Loan |
|---|---|---|---|---|
| 3 years | ₹25,624 | ₹1,22,451 | ₹9,22,451 | 15.3% |
| 4 years | ₹20,100 | ₹1,64,806 | ₹9,64,806 | 20.6% |
| 5 years | ₹16,804 | ₹2,08,232 | ₹10,08,232 | 26.0% |
| 6 years | ₹14,620 | ₹2,52,673 | ₹10,52,673 | 31.6% |
| 7 years | ₹13,056 | ₹2,96,725 | ₹10,96,725 | 37.1% |
Loan: ₹8,00,000 at 9.5% p.a. reducing balance. Rule of thumb: keep car loan tenure at or below 5 years and total EMI (all loans) under 40% of net monthly income.
Every extra lakh of down payment saves roughly ₹26,000 in interest and lowers the EMI by ₹2,100/month. It can also qualify you for a better rate (lower loan-to-value ratio).
| Down Payment | Loan Amount | Monthly EMI | Total Interest | Interest Saved vs 10% |
|---|---|---|---|---|
| 10% (₹1L) | ₹9,00,000 | ₹18,904 | ₹2,34,261 | — |
| 20% (₹2L) | ₹8,00,000 | ₹16,804 | ₹2,08,232 | ₹26,029 |
| 30% (₹3L) | ₹7,00,000 | ₹14,703 | ₹1,82,203 | ₹52,058 |
| 40% (₹4L) | ₹6,00,000 | ₹12,603 | ₹1,56,174 | ₹78,087 |
| 50% (₹5L) | ₹5,00,000 | ₹10,502 | ₹1,30,145 | ₹1,04,116 |
Car price ₹10L (on-road), 9.5% p.a., 5-year tenure. Aim for a minimum 20% down payment — it reduces interest, avoids negative equity (owing more than the depreciated car is worth), and improves approval odds.
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A car depreciates 10–15% in Year 1. On a ₹10L car, that's ₹1–1.5L lost in value before the first service. Factor depreciation into your buy-vs-lease decision — the total cost of ownership often exceeds the sticker price by 40–60% over 5 years when you include loan interest, insurance, fuel and maintenance.
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Car loan rates in India range from 8.5% to 12%+ depending on the bank, your credit score and whether it's a new or used vehicle. Maruti, Hyundai and other OEM tie-ups sometimes offer special rates.
Banks typically allow EMI up to 40% of net monthly income. At ₹50,000 net income, maximum EMI is ~₹20,000. At 10% for 5 years, you can get approx. ₹9.2L car loan.
Yes. A larger down payment reduces your loan amount, EMI, total interest, and also improves your chances of loan approval. Aim for at least 20% down payment.
Banks fund 80-90% of the on-road price. The standard advice: put down at least 20% as down payment. Higher down payment means lower loan amount and less total interest. For a Rs 10L car, a 30% down payment saves approximately Rs 15,000-20,000 in total interest over a 5-year loan compared to a 10% down payment.
If you have the cash, paying outright is almost always better - you avoid 9-12% interest. However, if the same cash invested in equity earns more than the car loan rate, borrowing makes mathematical sense. In practice, a car is a depreciating asset losing 10-15% per year. Prefer cash if available; take a loan only if necessary.
For salaried employees: PAN card, Aadhaar, last 3 months salary slips, last 6 months bank statements, ITR for last 2 years if required, and Form 16. For self-employed: PAN, Aadhaar, ITR for last 2 years, CA-certified profit and loss statements, and bank statements. Some lenders process car loans in 2-4 hours digitally for existing bank customers.
Car loan rates in 2026: SBI (7.25-8.75%), HDFC (7.95-9.40%), ICICI (8.85-10.90%), Bajaj Auto Finance (7.5-17.5%). Rates depend on CIBIL score, car age (new vs used), loan amount and tenure. Used car loans are typically 1-3% higher than new car loans. Pre-owned cars above 5 years are often not financed by large banks.
On a Rs 10 lakh car at 10% for 5 years: 10% down (Rs 1L loan = Rs 9L) costs Rs 2.14L in total interest. 30% down (Rs 7L loan) costs Rs 1.66L in interest — saving Rs 48,000. Additionally, lower loan-to-value ratio often qualifies you for a 0.5-1% lower rate, saving another Rs 15,000-20,000. A higher down payment also means lower EMI (Rs 17,012/month vs Rs 19,127/month), improving monthly cash flow.
Calculate how much interest and time you save by making a lumpsum prepayment on your existing loan.
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