Car Loan EMI Calculator
Estimate your monthly car loan payments. Check affordability for your new car purchase with our Car Loan EMI Calculator.
Loan Details
EMI Breakdown
Monthly EMI
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Drive Your Dream Car Smartly
Buying a car is exciting, but the financial commitment is real.
Budgeting Rule: 20-4-10
- 20% Down Payment: Try to pay at least 20% upfront.
- 4 Years: Try to limit the loan tenure to 4 years to avoid paying excessive interest on a depreciating asset.
- 10% Income: Your car expenses (EMI + Fuel + Insurance) should not exceed 10% of your monthly gross income.
Hidden Costs
Remember that the Ex-Showroom Price is not the final price.
- + Registration (RTO)
- + Insurance (Mandatory 3rd Party + Own Damage)
- + Accessories & Handling Charges
- + Extended Warranty Always calculate your EMI based on the estimated Loan Amount, not just the car sticker price.
Frequently Asked Questions
What is the maximum tenure for a car loan?
Most banks offer car loans for a tenure of up to 7 years (84 months). Some lenders may offer up to 8 years for specific premium car models.
Is a fixed or floating rate better for car loans?
Car loans typically come with fixed interest rates. This is beneficial as your EMI remains constant, allowing for better monthly budgeting.
Can I get 100% financing for a car?
Some banks offer 100% funding on the 'Ex-Showroom Price' for select customers with high credit scores. However, you usually still have to pay for insurance and registration.
What determines my Car Loan Interest Rate?
Your CIBIL score, income level, relationship with the bank, and the car model (new vs. used) determine your rate. New cars get lower rates than used cars.
Is foreclosure allowed in Car Loans?
Yes, you can pay off the loan early. However, most banks charge a foreclosure penalty ranging from 2% to 5% of the outstanding principal.
How does Down Payment affect my EMI?
A higher down payment reduces the loan amount, which directly lowers your monthly EMI and the total interest paid over the tenure.
Can I negotiate the interest rate?
Yes! If you have a credit score of 750+ or a long-standing relationship with the bank, you can negotiate for a lower rate or a waiver on processing fees.
Is insurance included in the loan amount?
Usually, banks fund 85-90% of the On-Road price (which includes insurance). Some may fund insurance too, but paying it upfront saves you from paying interest on it.
What is Hypothecation?
Hypothecation means the car is pledged as collateral to the bank until you repay the loan. You cannot sell the car without removing the hypothecation from the RC.
Difference between Car Loan and Lease?
In a loan, you own the car after repayment. In a lease, you pay a monthly rental to use the car for a few years and then return it, buy it, or upgrade.