Car loans run 1-7 years at rates of 8.5-12% p.a. (new) or 11-15% (used). Pick your bank's rate preset, enter the on-road price (or out-the-door cost after down-payment), and see your monthly EMI plus the total interest you'll pay over the loan tenure. Includes processing-fee impact (usually 0.5-1% of loan amount).
When to use this
Use to compare: short vs long tenure (shorter = higher EMI but much less total interest), new vs used car loan rates, dealer financing vs your bank's pre-approved offer, and the actual all-in cost of the car once interest and processing fees are factored in.
Frequently Asked Questions
Should I take a 3-year or 7-year car loan?
Shorter is almost always better. A 7-year car loan can mean paying interest after the car's resale value is lower than the outstanding loan. 3-5 years is the sweet spot - manageable EMI without ending up underwater.
Is a higher down payment worth it?
Almost always yes. Every ₹1 lakh extra down-payment removes ~₹13-14K of interest over a 5-year loan at 9% p.a. The 'Prepayment Savings' panel shows the equivalent if you'd rather front-load the prepayment instead of the down-payment.
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