Car Loan EMI Calculator
Calculate monthly EMI for your dream car with down payment options
💡 Tip: Click value to edit directly. Supports shorthand (5L, 2.5Cr) or exact numbers (725000)
💡 Tip: Click value to edit directly. Supports shorthand (5L, 2.5Cr) or exact numbers (725000)
Popular Car Categories
Loan Amount
Down Payment
Total Interest
Total Cost of Car
Car Purchase Breakdown
Car Loan Summary
Year-wise Growth Projection
Car Loan Guide
Car loans are secured loans where the vehicle serves as collateral. They typically offer lower interest rates than personal loans and longer repayment periods, making your dream car more affordable.
Key Features:
- Lower Interest Rates: 8-15% annual interest (secured by the car)
- Higher Loan Amount: Can finance up to 90% of car value
- Flexible Tenure: Repayment period from 1-7 years
- Quick Processing: Faster approval due to asset backing
- Tax Benefits: Interest deduction available for business use
Down Payment Strategy:
- Higher Down Payment: Reduces EMI and total interest
- Lower LTV Ratio: Better interest rates with more down payment
- Minimum 10%: Most lenders require at least 10% down payment
- Optimal Range: 20-30% down payment is ideal
Frequently Asked Questions
What is the maximum loan amount I can get for a car?
Most lenders offer up to 90% of the car's on-road price. The exact amount depends on your income, credit score, and the lender's policies.
Can I get a car loan for a used car?
Yes, but used car loans have higher interest rates (12-16%) and shorter tenures. The car's age and model affect loan eligibility.
What documents are required for a car loan?
Identity proof, address proof, income proof (salary slips/ITR), bank statements, and car quotation/invoice are typically required.
Can I prepay my car loan without penalty?
Most banks allow prepayment after 6-12 months without penalty. Check your loan agreement for specific terms and conditions.
What happens if I default on car loan payments?
The lender can repossess the car after due legal process. Your credit score will also be negatively impacted, affecting future loan eligibility.