This calculator provides estimates based on the information you provide. The actual loan terms, interest rates, and fees may vary based on your credit score, income, car model, and the lender's policies. Please consult with your bank or financial institution for exact loan terms and conditions.
EMI Calculation Formula
The EMI (Equated Monthly Installment) is calculated using the following formula:
Use the slider or type the amount you want to borrow (₹1,00,000 to ₹50,00,000)
2
Set Interest Rate
Enter the annual interest rate offered by your lender (typically 8% to 25%)
3
Choose Loan Tenure
Select the repayment period in years or months (1 to 7 years)
4
Add Processing Fee
Include any upfront processing fees (usually 0% to 2% of loan amount)
Sample Calculation Example
Let's calculate EMI for a ₹8,00,000 car loan:
Loan Amount:₹8,00,000
Interest Rate:10.5% per annum
Loan Tenure:5 years (60 months)
Processing Fee:0% (₹0)
Monthly EMI:₹17,196
Total Interest:₹2,31,760
Total Payment:₹10,31,760
Frequently Asked Questions (FAQs) for Car Loan
A car loan is a secured loan provided by banks and financial institutions to purchase a new or used car. The car itself serves as collateral, and the loan amount typically covers 80-90% of the car's on-road price.
Eligibility criteria include: Age between 21-65 years, stable income source, good credit score (700+), sufficient down payment (10-20% of car value), and no existing loan defaults. Some lenders have minimum income requirements.
Required documents include: Identity proof, address proof, income proof, bank statements, employment proof, and car quotation/invoice. Additional documents may be needed for income verification and credit assessment.
Car loan interest rates in India typically range from 8% to 25% per annum, depending on your credit score, income, car model, and the lender. New car loans usually have lower rates than used car loans.
Loan amounts usually range from ₹1,00,000 to ₹50,00,000, depending on your income, car value, and repayment capacity. Most lenders offer up to 80-90% of the car's on-road price, with the remaining as down payment.
Processing fees typically range from 0% to 2% of the loan amount, with a minimum of ₹500 to ₹5,000. Some lenders offer zero processing fee promotions, especially for new car purchases.
Yes, most lenders allow prepayment after 6-12 months of loan disbursement. Prepayment charges of 2-4% may apply. Some lenders offer free prepayment after a certain period or for specific amounts.
Car loan tenure can extend up to 7 years, depending on the car model and your age. Longer tenures result in lower EMIs but higher total interest payments. Most borrowers opt for 3-5 years tenure.
Yes, most lenders offer car loans for used cars, but with different terms. Used car loans typically have higher interest rates, shorter tenures, and lower loan-to-value ratios compared to new car loans.
Defaulting on car loan payments can result in late payment charges, negative impact on credit score, and potential repossession of the vehicle. It's important to contact your lender immediately if you face financial difficulties.
Yes, you can transfer your car loan to another bank offering lower interest rates. This process involves processing fees and may require vehicle re-registration. Ensure the savings justify the transfer costs.
Most lenders require comprehensive car insurance for the loan tenure. The insurance premium is often included in the loan amount. You may also need to purchase additional insurance products offered by the lender.