Car Loan EMI Calculator — India
Estimate your monthly car-loan EMI in rupees using current bank rates for new and used cars. See total interest over the tenure. No signup, no tracking.
Current rates (≈ April 2026 — RBI repo 5.25%; verify with your bank)
| Lender / type | Typical rate | Notes |
|---|---|---|
| SBI | 8.5–9.5% | Lowest for salaried/govt |
| HDFC Bank | 9.0–10% | Fast approval |
| ICICI Bank | 9.0–10% | Up to 100% on-road finance |
| Axis Bank | 9.25–10.5% | Flexible tenure |
| Kotak Mahindra Prime | 9.5–11% | Used-car specialist |
Major lenders
- SBI — often the lowest car-loan rates, especially for salaried and government employees
- HDFC Bank — fast approval and up to 100% on-road price financing for select models
- ICICI Bank — competitive new-car rates and pre-approved offers
- Axis Bank — flexible tenures up to 7 years
- Kotak Mahindra Prime — strong for used-car loans
The real cost — a worked example
Example: ₹10,00,000 car, 20% down (₹2,00,000), financing ₹8,00,000 at 9.5% for 5 years
- Monthly payment: ₹16,801
- Total paid over 5 years: ₹1,008,089
- Total interest: ₹208,089
- Effective price (car + interest): about ₹12.08 lakh including the down payment.
New vs used car loan tips
- New car loans ≈ 8.5–10% p.a.; used car loans ≈ 10–12% with shorter tenures.
- Maximum tenure is usually 7 years — a longer tenure lowers the EMI but raises total interest.
- A higher down payment and a CIBIL score of 750+ unlock the best advertised rates.
Frequently Asked Questions
How is car loan EMI calculated in India?
Using the reducing-balance formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the financed amount, r the monthly rate and n the months. The same formula applies at SBI, HDFC, ICICI and every bank.
What is the current car loan rate in India?
New-car loans are roughly 8.5–10% per year as of April 2026; used-car loans 10–12%. SBI is often cheapest for salaried borrowers. Your CIBIL score and the model affect the rate.
What is the maximum car loan tenure?
Usually up to 7 years for new cars and 5 years for used. A longer tenure reduces the EMI but increases total interest — keep it as short as your budget allows.
How much down payment should I make?
Banks finance up to 85–100% of the on-road price. A larger down payment lowers your EMI, total interest, and the risk of going 'underwater' as the car depreciates.
Can I prepay or foreclose my car loan?
Yes. Most banks allow foreclosure after a few EMIs; some charge a small fee. Prepaying early saves the most interest because the early EMIs are interest-heavy.