Car loan EMI for India in 2026: a ₹6 lakh new-car loan at 9.00% for 5 years = ₹12,455/month with ₹1.47 lakh total interest. Aim to keep the EMI below 15% of your monthly take-home, the down payment at 20–25% of on-road price, and the tenure under 60 months to avoid being underwater on rapid first-year depreciation.
About this calculator
A car loan calculator tells you the monthly EMI for financing a vehicle, along with the total interest paid over the loan tenure. Unlike a simple EMI calculator, this tool factors in your down payment and one-time insurance premium to show the real total cost of owning the car — a figure that can be 40–60% higher than the on-road price alone.
Car loan rates in India range from about 8.5% to 12% depending on the lender, your credit profile, and the car model. The calculator lets you experiment with different down payment amounts to see how putting down more upfront drastically reduces both the loan amount and long-term interest cost.
Common uses
- Calculate car loan EMI before visiting a dealership to avoid overpaying
- See the real total cost of owning a car including loan interest and insurance
- Compare different down payment scenarios to find the optimal upfront amount
- Check how a longer tenure affects your monthly EMI versus total interest paid
- Model financing options for new and used cars at different loan rates
Frequently asked questions
How much down payment is typical for a car loan in India?
Most banks finance 80–90% of the on-road price for new cars, requiring a 10–20% down payment. For used cars, the LTV is lower — typically 70–80%. Making a larger down payment (25–30%) significantly reduces your loan amount and total interest, and may qualify you for a better interest rate.
What is included in the on-road price of a car?
The on-road price includes: ex-showroom price, GST (28% on most passenger vehicles plus cess), road tax (varies by state), registration charges, and insurance premium. This total can be 15–25% higher than the ex-showroom price depending on the state and car category.
Can I get a car loan at 0% interest?
Manufacturers and dealers sometimes offer 0% EMI schemes, but these usually come with conditions. The discount you could have negotiated on the car price is often built into the 0% offer, effectively hiding the financing cost. Always compare the 0% EMI option against a standard loan plus the available cash discount.
What happens if I miss a car loan EMI?
Missing an EMI impacts your CIBIL score negatively, triggers penalty interest (usually 2% per month on the overdue amount), and may result in a legal notice after multiple defaults. Repeated defaults allow the lender to repossess the vehicle. Contact your lender immediately if you anticipate difficulty — most banks offer a restructuring option for genuine hardship cases.