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India Car Loan Calculator (EMI)

Your monthly EMI, using the reducing-balance method every Indian bank uses.

On-road price

Rs.

Down payment

Rs.

Loan tenure (months)

Interest rate (p.a.)

Processing fee

What you entered

On-road price: Rs. 10,00,000Down payment: Rs. 2,00,000Interest rate: 9.5%Tenure: 60 months

1
Loan amount (on-road price − down payment)
Rs. 10,00,000.00 − Rs. 2,00,000.00= Rs. 8,00,000.00
2
Monthly interest rate
9.5% ÷ 12= 0.7917%
3
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Rs. 8,00,000.00 × 0.7917% × (1+r)^60 ÷ (...)= Rs. 16,801.49
4
Total payment over the tenure
Rs. 16,801.49 × 60 months= Rs. 10,08,089.34
5
Total interest paid
Rs. 10,08,089.34 − Rs. 8,00,000.00= Rs. 2,08,089.34
6
One-time processing fee
Rs. 8,00,000.00 × 1%= Rs. 8,000.00

Result

Monthly EMI: Rs. 16,801

Financing Rs. 8,00,000 at 9.5% for 60 months costs Rs. 2,08,089 in interest, plus a one-time processing fee of Rs. 8,000 — total payment comes to Rs. 10,08,089.

Car loan EMI at 9.5% with 20% down payment

Each row puts 20% down on the on-road price and finances the balance at 9.5%. The EMI columns give the monthly instalment for each tenure; the last column is total interest on the 60-month case.

On-road price	Loan amount	EMI 36 months	EMI 48 months	EMI 60 months	EMI 84 months	Total interest over 60 months
Rs. 5,00,000	Rs. 4,00,000	Rs. 12,813	Rs. 10,049	Rs. 8,401	Rs. 6,538	Rs. 1,04,045
Rs. 8,00,000	Rs. 6,40,000	Rs. 20,501	Rs. 16,079	Rs. 13,441	Rs. 10,460	Rs. 1,66,471
Rs. 10,00,000	Rs. 8,00,000	Rs. 25,626	Rs. 20,099	Rs. 16,801	Rs. 13,075	Rs. 2,08,089
Rs. 15,00,000	Rs. 12,00,000	Rs. 38,440	Rs. 30,148	Rs. 25,202	Rs. 19,613	Rs. 3,12,134
Rs. 20,00,000	Rs. 16,00,000	Rs. 51,253	Rs. 40,197	Rs. 33,603	Rs. 26,150	Rs. 4,16,179

On-road price is the figure to use, not ex-showroom: it already includes RTO registration, road tax and the first year of insurance, which together add roughly 10 to 15% to the sticker. Stretching an Rs. 8,00,000 loan from 36 to 84 months halves the EMI from Rs. 25,626 to Rs. 13,075 and roughly triples the interest, and because a car depreciates faster than the loan amortises you spend most of a long tenure owing more than the vehicle is worth. Insurance renews annually and is not in these figures. Unlike a home loan, interest on a car loan is not tax deductible for salaried buyers, though it may be a business expense for the self-employed.

On-road price, not just the sticker price

Indian car loans are usually sized against the on-road price — the ex-showroom price plus RTO registration, road tax, and insurance — not the ex-showroom price alone, so your loan amount is often meaningfully higher than what's advertised.

The processing fee is paid once, not financed

Most Indian lenders charge a 0.5-1% processing fee on the loan amount upfront, deducted from the disbursed amount or paid separately — it doesn't affect your EMI, but it's a real cost worth budgeting for alongside your down payment.

Choosing the right tenure

Car loan tenures in India range from 1–7 years. Shorter tenure (3 years) means higher EMI but much less total interest. Longer tenure (7 years) lowers EMI but you pay 50–80% more interest. Banks often push longer tenures to make expensive cars seem affordable — always check total interest, not just EMI.

Frequently asked questions

How is car loan EMI calculated in India?

EMI = P × r × (1+r)^n / [(1+r)^n − 1], where P = loan amount, r = monthly interest rate, n = tenure in months. For ₹8 lakh loan at 9% for 5 years: EMI = ₹16,607. Total payment = ₹9,96,420. Total interest = ₹1,96,420. All Indian banks use reducing balance, not flat rate.

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

New cars: 8.5–10.5% (SBI, HDFC, ICICI offer the lowest). Used cars: 11–15%. Electric vehicles: some banks offer 1–2% lower rates. Rates vary by credit score (750+ CIBIL gets the best rates), loan amount, and tenure. Always compare 3–4 lenders before accepting a dealer-arranged loan.

How much down payment for a car loan in India?

Banks typically finance 80–90% of the on-road price, so you need 10–20% down payment. A ₹10 lakh on-road car needs ₹1–2 lakh down. Some banks offer 100% financing for new cars to salaried applicants with high income, but a larger down payment lowers EMI and total interest significantly.