Car Loan EMI Calculator
Car Loan EMI Calculator
Plan your car purchase by calculating monthly installments and interest costs
What is Planning your Car Finance?
A Car Loan EMI (Equated Monthly Installment) is the amount you pay every month to the bank for borrowing money to buy a vehicle. Car loans in India are typically 'Reducing Balance' loans, where the interest is calculated on the remaining principal every month.
The Mathematical Formula
EMI = [P x r x (1+r)^n] / [(1+r)^n - 1]. Where P is the loan amount (Price - Down payment), r is the monthly interest rate, and n is the tenure in months.
📊 Practical Example
"For a ₹10 Lakh car, if you pay ₹2 Lakhs as a down payment and borrow ₹8 Lakhs for 5 years at 9%: Your EMI will be ₹16,607. Total interest paid over 5 years will be ₹1,96,400."
⚠️ Common Mistake
Ignoring the 'On-road Price'. Loans are often calculated on the Ex-showroom price, but you have to pay for Registration, Insurance, and Road Tax yourself. Ensure your down payment covers these costs or include them in the total loan amount.
Typical Car Loan Rates (2024-25)
| Bank Type | Interest Rate | Best for |
|---|---|---|
| Public Banks (SBI/BoB) | 8.70% - 9.50% | Lowest rates |
| Private Banks (HDFC/ICICI) | 9.00% - 11.00% | Fast processing |
| NBFCs / Dealerships | 10.50% - 14.00% | Low CIBIL scores |
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