A car loan EMI calculator shows exactly how much you'll pay every month for your new or used car, before you walk into a showroom or bank. Enter the loan amount (on-road price minus your down payment), the interest rate, and the tenure to instantly see your monthly EMI, total interest, and total repayment.
Worked Example:
Loan = ₹8,00,000 | Rate = 8.75% p.a. | Tenure = 7 years
r = 8.75 ÷ 12 ÷ 100 = 0.007292
n = 7 × 12 = 84 months
EMI = 8,00,000 × 0.007292 × (1.007292)⁸⁴ ÷ ((1.007292)⁸⁴ − 1)
= ₹12,770 per month
What's the difference between new and used car loan interest rates?
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New car loans typically get lower rates (around 7.45%-9.00%) since the car itself is fresh collateral with a known depreciation curve. Used car loans usually carry higher rates, often 9.50%-14%, because resale value depreciates faster and lenders take on more risk.
Is down payment mandatory for a car loan?
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Most lenders finance 80-90% of the on-road price, so you typically need to arrange 10-20% as down payment from your own funds. A larger down payment lowers both your EMI and the total interest you pay.
Can I prepay or foreclose my car loan early?
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Yes, most banks allow part-prepayment or full foreclosure after a lock-in period (often 6-12 months), though some charge a foreclosure fee of 2-5% on the outstanding amount for fixed-rate loans. Floating-rate car loans usually have no prepayment penalty.
Does my CIBIL score affect my car loan approval and rate?
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Yes. A CIBIL score above 750 typically gets you the lender's best advertised rate and faster approval. Scores between 650-750 may still get approved but at a higher rate, while scores below 650 can lead to rejection or require a guarantor.