Car Loan EMI Calculator
Calculate EMI for your car loan.
Car Loan Amount
Interest Rate
Tenure (Years)
Total Payable
₹6,15,496
Car Loan EMI Calculator
Car Loan EMI Calculator helps you plan your car purchase by estimating monthly payments.
How does this Car Loan EMI Calculator work?
The calculator uses the following formula:
E = P x r x (1+r)^n / ((1+r)^n - 1)
- E = Equated Monthly Installment (EMI)
- P = Car Loan Amount
- r = Monthly interest rate (Annual rate / 12 / 100)
- n = Loan tenure in months
- This standard formula is used by all banks.
How to use this Car Loan EMI Calculator effectively
- Enter the car loan amount.
- Input the interest rate offered by the bank.
- Select the loan tenure.
- The calculator will show the EMI you need to pay for your dream car.
Commonly asked questions
What is Car Loan EMI?
It is the fixed monthly amount you pay to repay your car loan, comprising principal and interest.
Can I get 100% funding?
Some banks offer 100% ex-showroom funding, but you usually need to pay for registration and insurance.
What is the maximum tenure?
Car loan tenures usually range from 1 to 7 years.
Is interest fixed or floating?
Most car loans come with fixed interest rates, but some lenders offer floating rates.
Can I prepay my car loan?
Yes, but banks often charge a prepayment penalty (foreclosure charges) on fixed-rate car loans.
Does the car model affect interest rate?
Sometimes, lenders may offer special rates for specific models or electric vehicles (EVs).
What documents are required?
KYC, income proof (salary slips/ITR), and bank statements are typically required.
Is insurance mandatory?
Yes, comprehensive car insurance is mandatory for the loan tenure.
What is hypothecation?
The car remains hypothecated to the bank until the loan is fully repaid. You cannot sell it without an NOC.
Can I transfer my car loan?
Yes, balance transfer is possible if you find a lender with a lower interest rate.
Does credit score matter?
Yes, a score of 750+ helps in getting the best interest rates.
Can I take a loan for a used car?
Yes, used car loans are available but usually come with higher interest rates.
What is LTV ratio?
Loan-to-Value ratio is the percentage of the car's value that the bank funds. Typically 85-90% of on-road price.
Are there processing fees?
Yes, banks charge a processing fee, usually a percentage of the loan amount.
Can I change the tenure later?
You can request for tenure change, but it is at the bank's discretion and may involve rescheduling charges.
Is a co-applicant needed?
A co-applicant can improve eligibility but is not mandatory unless your income is insufficient.
What happens after repayment?
You get an NOC from the bank, which you must submit to the RTO to remove hypothecation from the RC.
Can I get a loan against my car?
Yes, some lenders offer a top-up loan or loan against car for existing customers.
How to reduce car loan EMI?
Pay a higher down payment or choose a longer tenure (though this increases total interest).
Is there a tax benefit?
For individuals, no. But for business owners, interest paid can be claimed as a business expense.