Car Loan EMI Calculator
Auto-loan EMI — Indian banks fund up to 100% of on-road price for new cars, 70–80% for used. Rates 8.75–11%, 3–7 year tenure.
🇮🇳All amounts in ₹ INR · India tax law · FY 2025–26
Loan inputs
Monthly EMI
₹16,801
Total interest
₹2,08,089
Total payment
₹10,08,089
Car loan in India
- New car: LTV up to 100% on-road price; rates 8.75–10%.
- Used car: LTV 70–80% of dealer valuation; rates 12–14%.
- EV-specific schemes from many PSU banks at 7.5–8%.
- No tax benefit unless car is used for business (then 24(b) on loan + depreciation).
Should you take a car loan?
Cars depreciate ~15% in year one. Compare loan EMI + interest against the opportunity cost of using the same amount as an equity SIP. For most buyers, a 20% down payment + 3-year loan is the financially-rational sweet spot.
Dealer in-house finance often quotes flat rate (looks low). 8% flat ≈ 14–15% reducing-balance APR. Always ask for the reducing rate.