Car Loan EMI Calculator — Monthly Payment & Total Interest
Updated: 3 June 2026 | New & Used Car Loans | Amortization Schedule
Use this car loan EMI calculator to instantly calculate your monthly EMI, total interest payable, and year-wise repayment schedule. Adjust the loan amount (₹1L–₹50L), interest rate, and tenure (1–7 years) to compare options. Car loan rates in India currently range from 8.75%–10.5% depending on the lender and your credit profile.
₹8,00,000
₹1L₹50L
9.5%
6%20%
5 Years
1 yr7 yrs
Monthly EMI
₹16,765
Total Interest
₹2.06L
Total Amount
₹10.06L
8.75%
Lowest car loan rate currently offered by Indian banks (SBI, Bank of Baroda, Kotak).
Keep EMI below 15-20% of net monthly income. 750+ CIBIL score gets best rates.
Keep EMI below 15-20% of net monthly income. 750+ CIBIL score gets best rates.
Car Loan EMI — Quick Reference (at 9.5% interest)
| Loan Amount | 3 Years EMI | 5 Years EMI | 7 Years EMI | Total Interest (5yr) |
|---|---|---|---|---|
| ₹3 lakh | ₹9,600 | ₹6,287 | ₹4,943 | ₹77,220 |
| ₹5 lakh | ₹16,000 | ₹10,479 | ₹8,236 | ₹1.29L |
| ₹8 lakh | ₹25,600 | ₹16,765 | ₹13,177 | ₹2.06L |
| ₹10 lakh | ₹32,000 | ₹20,956 | ₹16,472 | ₹2.57L |
| ₹15 lakh | ₹48,000 | ₹31,435 | ₹24,707 | ₹3.86L |
| ₹20 lakh | ₹64,000 | ₹41,913 | ₹32,943 | ₹5.15L |
Car Loan Interest Rates — Top Banks (2025)
| Bank / NBFC | Interest Rate | Max Tenure | Max LTV |
|---|---|---|---|
| SBI Car Loan | 8.85% – 9.35% | 7 years | 90% on-road |
| HDFC Bank | 9.0% – 9.75% | 7 years | 90% |
| ICICI Bank | 9.1% – 10.1% | 7 years | 90% |
| Axis Bank | 9.25% – 10.0% | 7 years | 85% |
| Kotak Mahindra | 8.75% – 9.5% | 7 years | 90% |
| Bank of Baroda | 8.75% – 9.5% | 7 years | 90% |
| Union Bank | 8.8% – 9.4% | 7 years | 85% |
| Used car (avg) | 10.5% – 14% | 5 years | 80% |
Frequently Asked Questions
How is car loan EMI calculated?
Car loan EMI = P × r × (1+r)^n / [(1+r)^n – 1], where P = loan amount (principal), r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Example: ₹8 lakh loan at 9.5% for 5 years (60 months): monthly rate = 9.5/12/100 = 0.00792; EMI = 800000 × 0.00792 × (1.00792)^60 / [(1.00792)^60 – 1] = ₹16,765/month. Total paid = ₹10.06 lakh; total interest = ₹2.06 lakh.
What is the current car loan interest rate in India (2025)?
Car loan interest rates in India as of 2025: SBI Car Loan: 8.85%–9.35%; HDFC Bank: 9.0%–9.75%; ICICI Bank: 9.1%–10.1%; Axis Bank: 9.25%–10.0%; Kotak Mahindra: 8.75%–9.5%; Bank of Baroda: 8.75%–9.5%. Rates depend on your credit score (750+ gets best rates), employment type (salaried vs self-employed), loan-to-value ratio, and whether the car is new or used. Used car loans typically carry 0.5–2% higher rates.
What is a good car loan tenure?
Car loan tenure typically ranges from 1–7 years. Shorter tenure (3 years): higher EMI but lower total interest paid. Longer tenure (7 years): lower EMI but significantly more interest. Recommendation: Keep EMI below 15–20% of net monthly income. For a ₹10L car loan at 9%: 3 years EMI = ₹31,800 (total interest ₹1.45L); 5 years EMI = ₹20,758 (total interest ₹2.45L); 7 years EMI = ₹15,840 (total interest ₹3.31L). Avoid 7-year tenure unless cash-flow constrained — you pay 2.3x more interest vs 3 years.
Is car loan interest tax deductible?
Car loan interest is generally NOT tax deductible for personal use vehicles. Exception: If the car is used exclusively for business purposes, the interest can be claimed as a business expense under the head "Profits and Gains from Business or Profession." Self-employed individuals and business owners can deduct car loan interest if the vehicle is used for business. Salaried employees cannot claim any tax deduction on car loan interest. Also note: depreciation on a business car (15% WDV) can also be claimed as a business expense.
What is the maximum car loan amount a bank will give?
Banks typically finance 80–90% of the on-road price of a new car (loan-to-value ratio). The remaining 10–20% is your down payment. Maximum loan amount also depends on your income: EMI typically should not exceed 40–50% of net monthly income. Eligibility example: Net income ₹60,000/month → max EMI ₹24,000 → max loan ~₹13.5 lakh at 9% for 7 years. Salary slips, bank statements (6 months), Form 16, and CIBIL score above 700 are required for best car loan approval.
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