Calculators · Car loan
Drive the car, not the debt.
Set the on-road price you plan to finance, the rate and tenure — and see the exact monthly instalment before you visit a showroom. Dealers quote flat rates; this is the honest reducing-balance math.
Car loan EMIs in India
New car loans typically price at 8.5%–12% p.a. from banks, and used-car loans at 11%–16%. Most lenders finance 80–90% of the on-road price for new cars, and 70–80% of the valuation for used ones, with tenures up to 84 months.
The sweet spot for most buyers is 48–60 months: short enough that you're not paying interest on a depreciating asset for seven years, long enough to keep the EMI comfortable. On a ₹8 Lakh loan at 9.5%, that's the difference between roughly ₹20,100 (48 months) and ₹16,800 (60 months) a month.
Watch out for dealership flat rates
Showroom finance desks often quote a "7% flat" rate that sounds cheaper than a bank's 9.5% — but a 7% flat rate on a 5-year loan is roughly 12.5% on a reducing balance. Always convert a flat quote before comparing; our flat vs reducing calculator does it in one step.
Also compare the processing fee, foreclosure charges and whether the rate is fixed or floating. A zero-foreclosure-fee loan is worth a slightly higher rate if you plan to prepay.
Common questions.
What is the EMI for a ₹8 Lakh car loan?
At 9.5% p.a. for 60 months, about ₹16,800 per month with roughly ₹2.08 Lakhs total interest. At 48 months the EMI is about ₹20,100 but interest drops to around ₹1.65 Lakhs.
What interest rate do car loans charge in India?
New car loans typically run 8.5%–12% p.a. and used-car loans 11%–16%, depending on your credit profile, the car's age and the lender.
How much car loan can I get?
Lenders usually finance 80–90% of a new car's on-road price, capped by your repayment capacity — total EMIs within 40–50% of monthly income.
Is a dealership flat rate cheaper than a bank loan?
Usually not. A 7% flat rate equals roughly 12.5% reducing over 5 years. Convert any flat quote to its reducing-balance equivalent before comparing.