Car / Auto Loan EMI Calculator

Financial

Calculate EMI for car and vehicle loans in India.

%

Car loan rates: 8.5–12% p.a.

months

Monthly EMI

₹26,571

Principal

₹8,00,000

Total Interest

₹1,56,572

Total Payable

₹9,56,572

About Auto Loans in India

How car loan EMI is calculated

Car loan EMI is calculated using the reducing balance method: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate, and n is tenure in months. The same formula applies for two-wheelers and commercial vehicles.

Typical car loan terms

Loan tenure: 1–7 years (most lenders offer up to 5 years)

Down payment: minimum 10–20% of vehicle on-road price

Loan amount: up to 80–90% of on-road price

Processing fee: 0.5–2% of loan amount

Current rates: 8.5–12% for new cars, 12–18% for used cars

New vs Used car loans

New car loans: lower interest rates, longer tenure available

Used car loans: higher rates due to depreciating collateral

Electric vehicles: banks offer lower rates for EVs (7.5–9%)

Always compare on-road price vs ex-showroom price when planning down payment

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