Calculate Your Car Loan EMI
Note: This calculator provides estimated EMI for car loans. Actual EMI may vary based on the lender's terms, processing fees, and your credit score. Interest rates typically range from 7-15% for new cars and 9-16% for used cars.
Your Car Loan Summary
₹10,501
Pay this amount every month for 60 months
₹5,00,000
Loan amount for your car
₹1,30,056
Interest payable over 5 years
₹6,30,056
Principal + Interest
Loan Breakdown
Buying a car is one of the most significant financial decisions you'll make. Whether you're planning to purchase a new car or a used vehicle, a car loan EMI calculator helps you understand exactly how much you'll pay each month, making budgeting and financial planning easier.
With The Tutor Bridge Car Loan EMI Calculator, you can instantly calculate monthly installments for your dream car. Simply enter the loan amount, interest rate, and repayment tenure to get a complete breakdown of your car loan—including monthly EMI, total interest, and overall cost.
Perfect for students planning their first car purchase, young professionals upgrading their ride, or families buying a new vehicle—our calculator provides accurate estimates in INR based on current market rates from major Indian banks and NBFCs.
What is a Car Loan EMI Calculator?
A car loan EMI calculator is an online tool specifically designed to help you calculate the monthly installment (EMI) for auto loans. It considers the loan amount, interest rate, and tenure to give you an accurate estimate of your car loan repayment.
Why use a car loan EMI calculator?
- Know your exact monthly payment before visiting the dealership
- Compare loan offers from different banks and NBFCs
- Understand total interest cost on your car loan
- Plan your budget to ensure affordable EMI payments
- Decide between new car and used car financing options
- Determine the optimal down payment for lower EMI
Car Loan Example:
You want to buy a car worth ₹8,00,000. You pay ₹2,00,000 as down payment, so you need a loan of ₹6,00,000 at 9% interest for 5 years.
Monthly EMI
₹12,455
Principal
₹6,00,000
Total Interest
₹1,47,304
Total Amount
₹7,47,304
Types of Car Loans in India
New Car Loan
Finance a brand new car from showrooms and authorized dealers.
- • Interest: 7-11% p.a.
- • Tenure: 1-7 years
- • Loan up to 90% of car value
Used Car Loan
Buy a pre-owned car from dealers or private sellers.
- • Interest: 9-16% p.a.
- • Tenure: 1-5 years
- • Loan up to 80% of car value
Electric Vehicle (EV) Loan
Special financing for electric cars with subsidized rates.
- • Interest: 6-10% p.a.
- • Government subsidies available
- • Lower interest than regular cars
Refinance Car Loan
Refinance existing car loan for better interest rates.
- • Lower EMI or tenure
- • Switch lenders for better terms
- • Prepayment of existing loan
How to Get the Best Car Loan Deal
Improve Your Credit Score
A credit score of 750+ gets you the lowest interest rates. Pay bills on time and reduce credit card balances.
Higher Down Payment
Pay 20-30% down payment to reduce loan amount, lower EMI, and get better interest rates.
Compare Multiple Lenders
Banks, NBFCs, and dealer financing—compare all options. Even 0.5% difference saves thousands.
Choose Right Tenure
Shorter tenure means higher EMI but lower total interest. Balance affordability with cost savings.
Consider Total Cost
Look beyond EMI—factor in processing fees, insurance, maintenance, and fuel costs.
Prepayment Options
Choose loans with no prepayment penalty so you can pay off early and save on interest.
💡 Pro Tip: Use our calculator to compare different down payment and tenure scenarios. A ₹1 lakh higher down payment can save you ₹20,000+ in interest over 5 years!
Car Loan FAQs
1. What is the typical down payment for a car loan in India?
Most lenders require 10-20% down payment for new cars and 20-25% for used cars. Higher down payment means lower EMI and better interest rates.
2. What is the maximum car loan tenure available?
New car loans can have tenure up to 7 years (84 months), while used car loans typically go up to 5 years (60 months). Longer tenure reduces EMI but increases total interest.
3. How is car loan interest calculated?
Car loans use the reducing balance method where interest is calculated on the outstanding principal. As you pay EMI, the principal reduces, so interest decreases over time.
4. Can students get car loans in India?
Yes, students with income proof (part-time job, internship) or a co-applicant (parent/guardian) can get car loans. Some banks offer special student car loan schemes with flexible terms.
5. Should I take loan from bank or car dealership?
Banks/NBFCs: Usually lower interest but stricter eligibility. Dealer financing: Quick approval, may include freebies, but often higher rates. Compare both before deciding.
6. What documents are needed for car loan?
Documents required: ID proof, address proof, income proof (salary slips/bank statements), passport photos, car quotation/invoice. Self-employed individuals need ITR and business proof.
7. Can I prepay my car loan without penalty?
Most banks allow part or full prepayment after 6-12 months without penalty. Check loan terms before applying. Prepaying saves significant interest costs.
8. Does car insurance affect my loan EMI?
Insurance is mandatory and separate from EMI. However, some lenders offer to club insurance premium with the loan, slightly increasing EMI but removing upfront insurance cost.
9. New car vs used car loan - which is better?
New car: Lower interest (7-11%), longer tenure, full warranty. Used car: Higher interest (9-16%), shorter tenure, lower loan amount. Choose based on budget and needs.
10. What is the processing fee for car loans?
Processing fees range from 0.5% to 2% of loan amount (usually ₹2,000 to ₹10,000). Some lenders waive it during festive seasons or for premium customers.
Smart Tips for Car Loan Buyers
Budget for total cost: EMI + insurance + fuel + maintenance should not exceed 15-20% of your monthly income.
Negotiate the car price first: Get the best deal on car price before discussing financing. A 5% discount saves more than 1% interest rate reduction.
Read the fine print: Check for hidden charges, prepayment penalties, late payment fees, and bounce charges.
Consider resale value: Popular car models have better resale value and easier loan approval for the next buyer if you sell.
Opt for comprehensive insurance: Third-party alone is cheaper but comprehensive protects your loan investment better.
Don't max out loan amount: Keep some savings for emergencies. Car depreciation means you shouldn't be overleveraged.
For students: Consider waiting until you have stable income or get parents as co-applicants for better rates.