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Car Loan EMI Calculator
Calculate EMI for your dream car
₹
Loan Amount₹8,00,000
₹0₹5,00,00,000
%
Interest Rate10%
0%30%
Total Tenure5Y 0M
0Y 0M30Y 0M
Monthly EMI
₹0
Principal Amount
₹8,00,000
Total Interest
₹0
Total Amount
₹0
Principal & Interest %
Car Loan EMI Calculator: Everything You Need to Know
Why Use a Car Loan EMI Calculator?
India is the world’s 4th largest car market, with car ownership growing rapidly. A car loan EMI calculator helps you quickly estimate your monthly payments, total interest, and total repayment, so you can plan your purchase and finances with confidence.
How Can a Car Loan EMI Calculator Help?
- Instant Results: Get your EMI and repayment details in seconds—no manual calculations needed.
- Error-Free: Online calculators use standard formulas, ensuring accuracy every time.
- Better Planning: Know your monthly outflow and adjust loan amount, tenure, or interest rate to fit your budget.
- Breakdown: See a clear split of principal, interest, and total payable amount.
- Amortization Schedule: View a month-wise breakdown of principal and interest for the entire loan tenure.
How to Calculate Car Loan EMI
The EMI is calculated using this standard formula:
EMI = [P × R × (1+R)n] / [(1+R)n – 1]Where:
- P = Principal loan amount
- R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Loan tenure in months
Example Calculation
For a ₹10 lakh car loan at 10% annual interest for 7 years (84 months):
EMI ≈ ₹16,602. Total repayment: ₹13,94,568. Interest paid: ₹3,94,568.
Amortization Schedule
An amortization schedule shows the principal and interest paid each month until the loan is fully repaid. Early payments go mostly toward interest; later payments reduce the principal faster.
How to Use This Car Loan EMI Calculator
- Enter your loan amount, interest rate, and tenure.
- Click to view your EMI and full payment schedule.
- Adjust values to compare different loan options.
Advantages of Using Our Online Car Loan EMI Calculator
- Free & Unlimited: Use as often as you like, no registration needed.
- Secure: Your data is never stored or shared.
- Accurate & Fast: Get instant, reliable results for any car loan scenario.
Frequently Asked Questions (FAQs)
What is a car loan?+
A car loan is a type of secured loan provided by banks and financial institutions to help individuals purchase a new or used vehicle. The car itself acts as collateral until the loan is repaid.
Who is eligible for a car loan?+
Eligibility usually depends on income, employment status, age, credit score, and repayment capacity. Both salaried and self-employed individuals can apply.
What types of vehicles can I purchase with a car loan?+
You can use a car loan to buy new cars, used cars, or in some cases, even two-wheelers and commercial vehicles, depending on the lender’s policy.
What is the minimum and maximum loan amount?+
The loan amount depends on the lender, your income, and the value of the vehicle. Typically, banks finance up to 80-100% of the ex-showroom or on-road price of the car.
What is the tenure for a car loan?+
Car loan tenure generally ranges from 1 to 7 years.
Can I get a car loan for a used (second-hand) car?+
Yes, many banks and NBFCs offer loans for pre-owned or used cars, though interest rates might be slightly higher than for new cars.
What is a Car Loan EMI?+
EMI stands for Equated Monthly Installment. It is the fixed monthly payment made towards repaying the car loan, comprising both principal and interest.
How is Car Loan EMI calculated?+
Car loan EMI is calculated using the principal amount, interest rate, and tenure. Many banks and financial websites offer online EMI calculators for quick estimation.
Can I change my car loan EMI amount?+
You can change your EMI by making a part prepayment or by restructuring your loan tenure with the lender’s approval.
What happens if I miss an EMI payment?+
Missing an EMI may result in penalties, higher interest, and can negatively impact your credit score. Continual defaults can lead to repossession of the car by the lender.
Is there a penalty for prepaying my car loan?+
Some lenders may charge a prepayment penalty, especially on fixed-rate car loans. Check your loan agreement for details.
What documents are required for a car loan?+
Common documents include identity proof, address proof, income proof (salary slips or IT returns), bank statements, and car-related documents (invoice, registration).
How long does it take to get a car loan sanctioned?+
Car loans are usually processed quickly—often within 1-3 days—if all documents are in order.
Can I apply for a car loan jointly?+
Yes, you can apply with a co-applicant (such as a spouse or immediate family member) to increase your loan eligibility.
What is the difference between fixed and floating interest rates on car loans?+
Fixed Rate: The interest rate remains unchanged throughout the loan tenure.
Floating Rate: The interest rate may change based on market conditions.
Floating Rate: The interest rate may change based on market conditions.
What other charges are involved in a car loan?+
Apart from interest, lenders may charge processing fees, documentation charges, prepayment penalties, late payment fees, and foreclosure charges.
What is a car loan EMI calculator?+
A car loan EMI calculator is an online tool that helps you estimate your monthly installments based on the loan amount, interest rate, and tenure.
How accurate are EMI calculators?+
EMI calculators provide a close estimate. Actual EMIs may differ slightly depending on additional charges, insurance, or lender-specific terms.
Can I get tax benefits on a car loan?+
No, car loans do not offer any tax benefits for salaried individuals. However, self-employed individuals may claim tax benefits if the car is used for business purposes.
Can NRIs apply for a car loan in India?+
Some banks do offer car loans to Non-Resident Indians (NRIs), subject to specific eligibility criteria.
What is a car loan top-up?+
A top-up loan is an additional loan that you can avail over your existing car loan, subject to eligibility and lender approval.
Can I transfer my car loan to another bank?+
Yes, you can opt for a balance transfer to another lender to get better interest rates or services, subject to terms and conditions.
Conclusion
A car loan EMI calculator is an essential tool for anyone planning to buy a car on finance. It helps you make informed decisions, compare offers, and manage your budget with ease.