Car Loan Calculator
Calculate your monthly EMI for car loans with on-road price and down payment options.
Monthly EMI
₹16,607
Loan Amount
₹8,00,000
Total Interest
₹1,96,420
Total Cost of Ownership
₹12,04,420
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What is a Car Loan?
A car loan is a secured loan where the vehicle itself serves as collateral. Banks and NBFCs in India offer car loans for both new and used vehicles. The loan covers the on-road price minus the down payment you make upfront. Typical car loan tenures range from 1 to 7 years, and interest rates generally fall between 7% and 12% per annum for new cars.
Down Payment & LTV
Most lenders require a down payment of 10% to 20% of the on-road price. The remaining amount is financed as a loan. A higher down payment reduces the loan amount and total interest, resulting in lower EMIs. Some lenders offer up to 100% on-road price financing for select models and borrower profiles.
Tips to Reduce Car Loan Cost
Make a higher down payment to reduce the principal. Choose a shorter tenure — though the EMI will be higher, you pay significantly less interest overall. Compare offers from multiple banks and negotiate processing fees. Consider prepayment or foreclosure once you have surplus funds, as most banks now do not charge prepayment penalties on floating rate car loans.