Car Loan EMI Calculator — EMI, Interest & Schedule

It shows three things live as you move the sliders: your monthly EMI, the total interest you will pay over the tenure, and the total amount (principal + interest). Click "Show Amortization Schedule" to see the year-wise breakup of principal paid, interest paid and outstanding balance.

No — it only reduces the monthly EMI. A longer tenure means you pay interest for more months, so total interest rises sharply. For a ₹10L loan at 9%: 3 years = ₹1.45L interest, 5 years = ₹2.45L, 7 years = ₹3.31L. The 7-year plan costs 2.3× more interest than 3 years.

As of FY 2025-26: SBI 8.85%–9.35%; HDFC 9.0%–9.75%; ICICI 9.1%–10.1%; Axis 9.25%–10.0%; Kotak 8.75%–9.5%; Bank of Baroda 8.75%–9.5%. Rates depend on your credit score (750+ gets best rates), employment type, loan-to-value ratio and whether the car is new or used. Used car loans carry 0.5%–2% higher rates.

Tenure usually ranges from 1–7 years. Shorter tenure = higher EMI but much lower total interest. Keep the EMI below 15–20% of your net monthly income. For a ₹10L loan at 9%: 3 years EMI = ₹31,800 (₹1.45L interest); 5 years = ₹20,758 (₹2.45L); 7 years = ₹15,840 (₹3.31L). Avoid 7 years unless cash-flow constrained.

Maintain a CIBIL score of 750+, make a larger down payment (lower LTV), keep a stable income and low existing EMIs, and compare offers across banks. Salaried applicants at banks where they hold a salary account, and those buying a new car, generally get the best rates.

Banks typically finance 80–90% of the on-road price of a new car; you pay the remaining 10–20% as down payment. The maximum also depends on income — your EMI should not exceed 40–50% of net monthly income. Example: net income ₹60,000/month → max EMI ~₹24,000 → max loan ~₹13.5 lakh at 9% for 7 years.

Typically: PAN and Aadhaar, address proof, income proof (salary slips or ITR for self-employed), bank statements for the last 6 months, and Form 16 for salaried applicants. A CIBIL score above 700 is generally required, and 750+ gets the best rates.

LTV is the portion of the car price the bank finances. Most banks offer up to 85–90% of the on-road price for new cars and around 80% for used cars. A lower LTV (bigger down payment) reduces your loan amount, EMI and total interest, and often earns a better rate.

For a personal-use car, no. The interest is deductible only if the car is used exclusively for business, where it can be claimed as a business expense under "Profits and Gains from Business or Profession." Self-employed persons and businesses can also claim 15% WDV depreciation on a business car. Salaried employees get no deduction on a personal car loan.

Section 80EEB allowed a deduction of up to ₹1.5 lakh on interest for loans taken to buy an electric vehicle, but only for loans sanctioned between 1 April 2019 and 31 March 2023. Loans sanctioned after that window do not qualify. Confirm your loan sanction date and eligibility on incometax.gov.in.

Yes. Most banks allow part-prepayment or full foreclosure after a few EMIs. Foreclosure charges are typically 2–5% of the outstanding on fixed-rate loans (often nil on floating-rate loans for individuals). Prepaying early saves the most interest because more of your early EMIs go toward interest.

If your car loan rate (say 9.5%) is higher than the after-tax return you can reliably earn on an investment, prepaying is usually the better financial choice as it is a guaranteed saving. If you can earn more elsewhere and have an emergency buffer, investing may win. Prepaying early in the tenure saves the most interest.