Calculator
Car Loan EMI Calculator
Plan a car purchase fully — on-road price, monthly EMI, total interest, and the all-in cost of owning the vehicle for the loan tenure.
Monthly EMI
₹16,801
for 5 years
On-road Price (Est.)
₹11,40,000
Ex-showroom + ~11% RTO + 3% insurance
Total Cost of Ownership
₹12,08,089
Down payment + total EMIs
Total Interest
₹2,08,089
Monthly EMI
₹16,801
Frequently asked questions
New-car loan rates in 2026 range from 8.5% to 13.5%. PSU banks offer 8.5%–9.75%, private banks 9%–11%, and NBFCs 11%–13.5%. Used-car loans are 200–300 bps higher. Manufacturer captive financiers (Maruti, Tata, Mahindra Finance) often have promotional rates 50–100 bps lower for select models.
Lenders typically allow 40%–50% of net income as EMI. On ₹30,000 take-home, that is ₹12,000–₹15,000 EMI capacity. At 9.5% over 5 years, this supports a ₹6 lakh loan — roughly enough for a budget hatchback after 15%–20% down payment.
20%–25% is the sweet spot. Below 15%, lenders may decline or charge a higher rate. Above 30%, the EMI savings start tapering. Cars depreciate fast — a higher down payment also keeps you out of "negative equity" if you sell early.
Yes. Foreclosure typically attracts 3%–5% of the outstanding principal as penalty for fixed-rate loans. RBI has eliminated foreclosure charges for floating-rate retail loans, but most car loans are fixed-rate, so the penalty applies. Always run the math — early closure usually still saves money on long tenures.
What you actually pay for a new car
The ex-showroom price is just the start. RTO registration adds roughly 11% (varies by state and engine size), comprehensive insurance another ~3% of the showroom price for the first year, and accessories / extended warranty / dealer fees can pile on another 2%–4%. Budget the full on-road number, not the brochure number.
How much should you finance?
A useful rule: down payment at least 20%, EMI not more than 15% of monthly income, total tenure not more than 5 years. Cars lose ~15% of value in year 1 and ~10% each year after — financing for too long means owing more than the car is worth.
Choosing the lender
- Captive financiers (Maruti, Tata, Mahindra) often run festival promotions with rates 50–100 bps below banks.
- PSU banks offer the cheapest rack rates but slower processing.
- Private banks and NBFCs are fastest, often pre-approved if you have an existing relationship.
Disclaimer: On-road estimate uses 11% RTO + 3% insurance which is indicative only. Actual on-road varies by state, vehicle category, and insurance plan. Confirm with the dealer before booking.
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