Car Loan EMI in India
Car loan EMIs in India depend on the vehicle price, your down payment, the lender's interest rate, and the repayment tenure you choose. Most banks finance 80–90% of the on-road price, with tenures ranging from 1 to 7 years. Interest rates for new car loans typically start around 8.5–10% p.a. for borrowers with strong credit, while used car loans attract higher rates — often 12–18% p.a. Use this car loan EMI calculator to model different combinations before finalising your purchase.
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, use this vehicle loan EMI calculator to compare the total cost of ownership — including EMI, down payment, and insurance — for both options.
How to Get a Lower Car Loan Interest Rate
A credit score above 750 is the single most powerful factor in securing a low car loan interest rate. Pre-approved loan offers from your existing bank often carry better terms than walk-in rates at the dealership. Making 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.