How to Calculate Car Loan EMI
Enter the loan amount (car price minus down payment), the annual interest rate offered by your bank/NBFC, and the tenure in months or years. The calculator shows your exact monthly EMI.
Current Car Loan Rates in India (2025)
- SBI Car Loan: 8.75–9.5% per annum
- HDFC Car Loan: 8.8–9.9% per annum
- ICICI Car Loan: 9.0–10.25% per annum
- Axis Bank: 8.7–10.0% per annum
Car Loan EMI Examples (9% Interest, 5 Years)
- ₹5 lakh car loan → ₹10,379/month
- ₹8 lakh car loan → ₹16,607/month
- ₹12 lakh car loan → ₹24,910/month
- ₹20 lakh car loan → ₹41,517/month
Tips Before Taking a Car Loan
- Make at least 20% down payment to reduce EMI burden
- Compare rates from at least 3 lenders before finalizing
- Check for processing fees, prepayment penalties, and foreclosure charges
- Ensure EMI is under 15% of monthly take-home salary
Frequently Asked Questions
What is the interest rate on car loans in India?
Car loan rates from banks in India range from 8.75% to 12% per annum in 2025, depending on the lender, vehicle type, and applicant's credit score.
How much car loan can I get on a ₹50,000 salary?
Banks allow maximum EMI of 40–50% of income. At ₹50,000 salary, you could qualify for an EMI of ₹20,000–25,000, supporting a loan of roughly ₹10–12 lakh for 5 years at 9%.
Can I prepay a car loan?
Yes, most banks allow prepayment. Some charge a prepayment penalty (1–5% of outstanding amount). Check your loan agreement for terms.
What is a good tenure for a car loan?
3–5 years is recommended. Longer tenures reduce EMI but significantly increase total interest paid. Cars depreciate, so shorter tenures are financially wiser.