How to Use This Car Loan EMI Calculator
Enter the loan amount you need — this is typically the on-road price minus your down payment. Set the interest rate quoted by your bank (you can get pre-approved offers before visiting the dealership). Choose your preferred tenure between 1 and 7 years. The calculator instantly shows your monthly EMI, total interest you'll pay, and the full year-by-year repayment schedule. Try different combinations to find the tenure that balances affordable EMIs with minimum total interest.
Car Loan EMI for Common Loan Amounts (9.5% p.a.)
Quick reference for monthly car loan EMI at 9.5% p.a. across popular loan amounts and tenures. Adjust the calculator above for your exact rate.
| Loan Amount | 3 Years | 5 Years | 7 Years |
|---|---|---|---|
| ₹3 Lakh | ₹9,608 | ₹6,302 | ₹4,903 |
| ₹5 Lakh | ₹16,009 | ₹10,503 | ₹8,172 |
| ₹8 Lakh | ₹25,615 | ₹16,805 | ₹13,075 |
| ₹10 Lakh | ₹32,018 | ₹21,006 | ₹16,344 |
| ₹12 Lakh | ₹38,422 | ₹25,207 | ₹19,613 |
| ₹15 Lakh | ₹48,027 | ₹31,509 | ₹24,516 |
At 9.5% p.a. Figures are indicative — use the calculator above for your exact rate.
Car Loan Interest Rates in India 2026
Car loan rates in India vary by lender, vehicle type (new vs used), and your credit profile. The table below shows indicative rates for new car loans from major lenders.
| Bank | New Car Rate (p.a.) | Used Car Rate (p.a.) | Max Tenure |
|---|---|---|---|
| SBI | 8.75% onwards | 11.25% onwards | 7 years |
| HDFC Bank | 8.50% onwards | 13.75% onwards | 7 years |
| ICICI Bank | 9.10% onwards | 14.00% onwards | 7 years |
| Axis Bank | 9.20% onwards | 14.50% onwards | 7 years |
Updated April 2026. Rates are indicative — contact your lender for personalised offers.
Car Loan Eligibility in India
To qualify for a car loan you generally need to be aged 21–65, with a minimum net monthly income of ₹15,000–₹20,000 depending on the lender. A CIBIL score of 700+ is recommended for the best rates. Salaried employees, self-employed professionals, and business owners are all eligible. Banks typically finance 80–90% of the on-road price, with the remaining 10–20% as your down payment. The loan amount is also limited by your repayment capacity — total EMIs should not exceed 40–50% of your monthly income.
New vs Used Car Loan EMI
New car loans attract lower interest rates and longer tenures (up to 7 years) since the vehicle serves as better collateral. Used car loans come with higher rates and shorter tenures (typically 3–5 years), which means higher EMIs for the same amount borrowed. However, a used car's lower sticker price often results in a smaller overall loan amount. Before buying, compare the total cost of ownership — including EMI, down payment, and insurance — for both options using this vehicle loan EMI calculator.
Tips to Get a Lower Car Loan Rate
A credit score above 750 is the single most powerful factor in securing a low car loan interest rate. Get pre-approved loan offers from your existing bank before visiting the dealership — walk-in rates at the showroom are rarely the best available. A higher down payment reduces your loan-to-value ratio, which lenders reward with lower rates. Festival season (Navratri, Diwali) typically brings promotional rates from banks and manufacturers. Compare at least three lenders using this auto loan EMI calculator before accepting any offer.