What is a good interest rate for a car loan in India?

Car loan interest rates in India typically range from 7% to 15% per annum. Public sector banks like SBI offer rates starting around 8.75%, while NBFCs may charge 10-15%. Your credit score significantly affects the rate you get.

What is the maximum tenure for a car loan?

Most banks offer car loans for up to 7 years (84 months). Longer tenures reduce your monthly EMI but increase total interest paid. A 5-year tenure is the most common choice balancing EMI affordability and interest cost.

How much down payment should I make on a car loan?

Banks typically finance 80-90% of the on-road price. A larger down payment (20-30%) reduces your loan amount, lowers EMI, and also reduces total interest. It also improves your chances of loan approval.

Does my credit score affect car loan EMI?

Yes. A credit score above 750 usually qualifies you for the lowest available interest rates, directly reducing your EMI. Scores below 650 may lead to higher rates or loan rejection.

What is the loan-to-cost ratio shown in this calculator?

The loan-to-cost (LTC) ratio is the percentage of the car's total cost that you are financing through a loan. For example, if the car costs ₹10L and you borrow ₹8L, the LTC is 80%. Banks prefer LTC below 90%.

Car Loan Calculator

Estimate monthly EMI and total interest for your car loan instantly.

Car Loan Details

Car On-Road Price₹8,00,000

₹50K₹20L

Down Payment₹1,50,000

₹0₹6,40,000

Interest Rate (% p.a.)

Tenure (Months)

Monthly EMI

₹13,651

Loan Amount

₹6,50,000

Total Interest

₹1,69,073

Total Payment

₹8,19,073

Loan-to-Cost Ratio

Acceptable — most banks will approve

81.3%

Amortization Schedule — First 12 Months

Month	EMI	Principal	Interest	Balance
1	₹13,651	₹8,505	₹5,146	₹6,41,495
2	₹13,651	₹8,573	₹5,078	₹6,32,922
3	₹13,651	₹8,641	₹5,011	₹6,24,281
4	₹13,651	₹8,709	₹4,942	₹6,15,572
5	₹13,651	₹8,778	₹4,873	₹6,06,794
6	₹13,651	₹8,847	₹4,804	₹5,97,947
7	₹13,651	₹8,917	₹4,734	₹5,89,030
8	₹13,651	₹8,988	₹4,663	₹5,80,041
9	₹13,651	₹9,059	₹4,592	₹5,70,982
10	₹13,651	₹9,131	₹4,520	₹5,61,851
11	₹13,651	₹9,203	₹4,448	₹5,52,648
12	₹13,651	₹9,276	₹4,375	₹5,43,372

Showing first 12 months of 60-month schedule.

Car Loan Calculator का उपयोग कैसे करें

1
Enter the total on-road price of the car you want to purchase.
2
Enter the down payment amount you plan to pay upfront.
3
Set the annual interest rate offered by your bank or NBFC.
4
Choose the loan tenure in months (12 to 84 months).
5
View your monthly EMI, total interest, and total repayment amount instantly.
6
Scroll down to see the 12-month amortization schedule with principal and interest breakup.

Car Loan Calculator के बारे में

Planning to buy a car on finance? The Car Loan Calculator helps you estimate your monthly EMI, total interest payable, and view a detailed amortization schedule before you walk into the dealership.

What You Get

Monthly EMI — calculated using the standard reducing balance formula
Total interest — the exact amount you pay above the principal over the loan tenure
Loan-to-Cost ratio — shows what percentage of the car price you are financing, with a health indicator
12-month amortization table — month-by-month breakdown of principal, interest, and remaining balance

Smart Defaults for India

The calculator comes pre-loaded with realistic defaults for Indian car buyers: on-road price range up to ₹20 lakhs, interest rates from 7% to 18%, and tenure options from 12 to 84 months. Slider controls make it easy to adjust values and see results update in real time.

Car loan rates in India typically range from 8.75% (SBI) to 15% (NBFCs). Your credit score, down payment, and loan amount all affect the rate you get. Use this tool to compare different scenarios and find the most affordable option.