Car Loan EMI Calculator
Calculate your car loan EMI, total interest, and get a complete payment schedule. Compare rates from SBI, HDFC, ICICI and other banks.
Car Loan Rates from 8.65% (Jan 2026)
8.65%
Lowest Rate (SBI)
7 Years
Max Tenure
90%
Max Financing
15-20%
First Year Depreciation
Loan Details
Include registration, insurance, and accessories
Recommended: 20% or more of car price
Click to Apply Bank Rate
SBI Car Loan
8.65%
ICICI Bank
8.70%
HDFC Bank
8.75%
Axis Bank
8.99%
Kotak Mahindra
8.80%
IndusInd Bank
9.25%
Your EMI Details
Monthly EMI
₹16,442
per month for 5 years
Loan Amount
₹8,00,000
Total Interest Payable
₹1,86,494
Total Amount Payable
₹9,86,494
Total Cost of Car
₹11,86,494
Principal: ₹8,00,000
Interest: ₹1,86,494
| Year | EMI Paid | Principal | Interest | Balance |
|---|
Car Loan Interest Rates 2026 (All Banks)
| Bank / NBFC | New Car Rate | Used Car Rate | Processing Fee | Max Tenure |
|---|---|---|---|---|
| SBI | 8.65% - 9.50% | 10.25% - 11.50% | Nil - 0.40% | 7 Years |
| ICICI Bank | 8.70% - 10.30% | 10.50% - 12.00% | 0.50% - 2.50% | 7 Years |
| HDFC Bank | 8.75% - 10.80% | 11.00% - 13.00% | Up to ₹7,500 | 7 Years |
| Axis Bank | 8.99% - 12.00% | 12.00% - 15.00% | Up to ₹5,000 | 5 Years |
| Kotak Mahindra | 8.80% - 11.00% | 11.50% - 14.00% | Up to ₹8,500 | 7 Years |
| Bank of Baroda | 8.70% - 9.85% | 10.00% - 11.50% | Nil | 7 Years |
Pro Tip: Negotiate!
Banks often have flexibility on interest rates. Get quotes from 3-4 banks, and use the lowest quote to negotiate with your preferred bank. A 0.5% rate reduction on ₹8 lakh loan saves ₹12,000+ over 5 years.
How to Get the Lowest Car Loan Rate
- High Credit Score: 750+ CIBIL score gets you the best rates. Check your score for free on CIBIL website
- Salary Account Relationship: Banks offer 0.25-0.50% discount to existing salary account holders
- Higher Down Payment: Paying 30-40% down shows commitment and reduces lender risk
- Shorter Tenure: Some banks offer lower rates for 3-year loans vs 7-year loans
- Compare Online: Use aggregators like BankBazaar, PaisaBazaar to compare all offers
- Festival Offers: Banks offer special rates during Diwali, Navratri, and financial year-end
True Cost of a Car Loan
| Loan Tenure | EMI (₹8L @ 8.75%) | Total Interest | Total Payment |
|---|---|---|---|
| 3 Years | ₹25,280 | ₹1,10,080 | ₹9,10,080 |
| 5 Years | ₹16,442 | ₹1,86,494 | ₹9,86,494 |
| 7 Years | ₹12,637 | ₹2,61,468 | ₹10,61,468 |
Car Depreciation Reality
A ₹10 lakh car loses ₹1.5-2 lakh in value the moment you drive it out. After 5 years, it's worth only ₹3-4 lakh, while you've paid ₹12+ lakh (including interest). Always factor depreciation into your decision.
Car Loan vs Paying Cash: What's Better?
| Factor | Pay Cash | Take Loan |
|---|---|---|
| Total Cost | ₹10 lakh only | ₹11.86 lakh (with interest) |
| Opportunity Cost | Could have earned 12% in MF | Cash stays invested |
| Monthly Cash Flow | No EMI stress | ₹16K-25K EMI burden |
| Emergency Buffer | Cash depleted | Cash available for emergencies |
| Best When | You have 2x car price saved | Low rates, good investments |
The 20-4-10 Rule: Put 20% down payment, take loan for maximum 4 years, and ensure EMI is under 10% of your monthly income. If a ₹10 lakh car doesn't fit this formula, look at a cheaper car.
Frequently Asked Questions
Is there any tax benefit on car loan?
For personal use, NO tax benefit is available on car loans. However, if the car is used for business purposes and registered in business name, you can claim depreciation and interest as business expense. Self-employed individuals may benefit more than salaried employees.
Can I prepay my car loan?
Yes, most banks allow prepayment after 6-12 months. For floating rate loans, RBI has banned prepayment penalties, so you can prepay without extra charges. Fixed rate loans may have 2-5% prepayment penalty. Always check your loan agreement.
What documents are needed for car loan?
Required documents: 1) ID Proof (Aadhaar, PAN), 2) Address Proof, 3) Income Proof - Last 3 months salary slips & 6 months bank statement for salaried; ITR for self-employed, 4) Photograph, 5) Car quotation from dealer.
What is the minimum salary for car loan?
Most banks require minimum ₹15,000-25,000 monthly salary for car loans. However, they also check that EMI doesn't exceed 50-60% of your net salary. For a ₹8 lakh loan with ₹16,000 EMI, you'd need at least ₹35,000+ salary.
Should I take loan from bank or dealer?
Banks usually offer lower rates than dealer financing (which is through NBFCs). However, dealers sometimes have special tie-ups with 0% EMI schemes (interest is included in car price). Compare the total payout, not just interest rate or EMI.