Car Loan EMI Calculator

New car loans in India usually carry interest of about 8% to 12% a year, because the loan is secured against the vehicle. Your exact rate depends on your credit score, income, the lender and whether the car is new or used — used-car loans are riskier for the lender and often price 1–4% higher. Enter the rate your bank quotes into the car loan EMI calculator to see the real monthly EMI.

Most car loans run for 5 to 7 years. A shorter tenure means a higher monthly EMI but far less total interest and quicker ownership, while a longer tenure lowers the EMI at the cost of paying interest for more years on a depreciating asset. As a rule, pick the shortest tenure whose EMI fits comfortably within your monthly budget so the car does not cost far more than its sticker price.

Yes. The EMI is charged on the loan amount, which is the on-road price minus your down payment. Putting down 20–30% upfront reduces the principal, so both your monthly EMI and the total interest fall, and it lowers the risk of owing more than the car is worth. Try different down payments in the calculator to see how much each one trims from your monthly car loan EMI.

Usually yes. Prepaying reduces your outstanding principal, which cuts the interest charged over the rest of the tenure — most effective in the early years when the interest share of each EMI is highest. Fixed-rate car loans may levy a foreclosure charge of around 3–6% of the outstanding amount, so weigh that fee against the interest you would save before closing the loan early.