Your details
About the Car Loan EMI Calculator
Car loans are secured against the vehicle, so rates sit well below personal loans — typically 8.5% to 11% for salaried buyers at banks. Lenders fund 80–100% of the ex-showroom price; insurance, registration and accessories usually come out of your pocket.
Remember that a car is a depreciating asset. A seven-year tenure lowers the EMI but leaves you owing more than the car is worth for most of the loan, which makes an early sale awkward.
The formula
Every bank and NBFC in India uses this reducing-balance formula. Interest is charged only on the outstanding balance, so the interest share of each EMI falls as the loan runs down while the principal share rises.
Things worth knowing
Frequently asked questions
Usually 80–100% of the ex-showroom price. Registration, insurance and accessories are generally excluded, so plan for 10–20% from your own funds.
Rarely. Dealers earn a commission on the loans they arrange. Get a sanction from your own bank first and use it as leverage.
Salaried individuals cannot. If the car is registered to a business and used for business purposes, the interest is a deductible expense and depreciation can be claimed.
Explore every calculator
55 free tools across loans, tax and investments — all with the full working shown.