Car loan EMI calculator Know your EMI before you buy

An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until the car loan is repaid. Each EMI covers that month's interest on what you still owe, and the rest pays down the loan, so early EMIs are mostly interest and later ones mostly principal.

A ₹10 lakh car loan at 9% costs ₹20,758 a month over 5 years, ₹16,089 over 7 years and ₹31,800 over 3 years. Over 5 years you pay ₹2,45,501 in interest.

Banks calculate car loan EMI on a reducing balance, charging interest only on what you still owe, and this calculator does the same. Some dealers quote a flat rate instead, charged on the full loan for the whole tenure. It looks lower than it is: over five years, a 5% flat rate costs the same as 9.15% on a reducing balance.

New car loan rates at SBI run from 8.55% to 9.50% a year, on the bank's rate card last updated on 15 October 2026. Electric cars start at 8.45%, and used cars run from 10.60% to 15.75%. Other banks set their own rates, and the rate you are offered depends on your credit score, the car and the tenure.

There is no single minimum, but a score of 750 or more gets you the lowest rates. SBI's published new car loan rates run from 8.55% for scores of 800 and above to 9.4% for scores of 650–699, for tenures of 3 to 5 years. Below that, expect a higher rate or a larger down payment.

Usually 10 to 20% of the on-road price. Many lenders finance up to 80 to 90% of the on-road price, which includes registration and insurance, and some offer more to strong applicants. Putting down 20% or more keeps the EMI and the total interest lower, and leaves you owing less than the car is worth as it loses value.

Most new car loans run for up to 7 years; SBI's New Car Loan Scheme, for example, allows repayment over up to 7 years. A longer tenure lowers the EMI, but you pay interest for longer. Compare tenures on this page to see the trade-off on your own loan.

Usually, yes, and prepaying cuts interest because every rupee repaid stops attracting interest from that month on. Under the RBI's Pre-payment Charges on Loans Directions, 2025, lenders cannot charge a prepayment fee on floating-rate loans taken by individuals for non-business use, for loans sanctioned or renewed from 1 January 2026. Many car loans are fixed-rate, where the lender's own charges apply; they must be stated in your sanction letter and Key Facts Statement.

A fixed rate stays the same for the whole loan, so your EMI never changes. A floating rate moves with the lender's benchmark rate, so the EMI or the tenure can change over the loan. Most car loans in India are fixed-rate; floating-rate loans to individuals cannot carry prepayment charges under the RBI's 2025 directions.

No. This calculator covers the loan alone. Insurance, registration, road tax and the lender's processing fee are paid separately unless you add them to the loan, in which case include them in the car price above.

Usually proof of identity and address (KYC), your PAN card, recent bank statements and proof of income: salary slips or Form 16 if you are salaried, income tax returns if you are self-employed. You will also need the dealer's quotation for the car. Each lender publishes its own list, so check it before you apply.

The lender adds a late-payment charge to the missed amount, reports the delay to the credit bureaus, and your credit score falls. Repeated misses can lead to the car being repossessed, since it is hypothecated to the lender until the loan is closed. If you expect to miss a payment, speak to your lender before the due date.

Collect the No Objection Certificate (NOC) and Form 35 from your lender, then apply at your RTO to remove the lender's hypothecation from the registration certificate (RC). Update your insurer as well, so the policy is in your name alone. Until the hypothecation is removed, the RC still shows the lender as having an interest in the car.

It should be within a few rupees. Lenders may round each EMI, charge a few days' interest between disbursal and your first EMI, or set a different first-EMI date. Use this to plan; your sanction letter has the final figures.