PocketCar Loan EMI Calculator
Estimate monthly payments for auto finance. Compare different bank interest rates and tenures to find the most economical car loan deal.
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Monthly EMI
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Total Interest Payable
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Total Payment
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Car Loan Calculation Formula
Like other retail loans, car loans in India use the reducing balance EMI formula:
EMI = P × r × (1 + r)n / [ (1 + r)n - 1 ]
Where P is loan principal, r is monthly rate, and n is tenure in months.
Worked Example
If you take a car loan of ₹8,00,000 for 5 years at 9.5% interest rate:
- Loan Principal: ₹8,00,000
- Monthly Interest Rate: 9.5 / 12 / 100 = 0.007916
- Tenure: 60 months
- Monthly EMI: ₹16,800
- Total Interest Payable: ₹2,07,987
- Total Repayment Cost: ₹10,07,987
Frequently Asked Questions
What is a typical interest rate for a car loan in India?
In 2026, bank car loan interest rates for new cars range from 8.8% to 11% p.a. Pre-owned car loans generally have higher rates ranging from 12% to 15% p.a.
What is the maximum tenure for a car loan?
Most banks in India offer a maximum tenure of 7 years (84 months) for new car loans. Used car loans are typically capped at 5 years.
How does CIBIL score affect car loans?
A higher CIBIL score (above 750) qualifies you for the lowest advertised interest rates, faster approvals, and up to 90-100% on-road price financing.
Can I prepay my car loan early?
Yes, you can prepay or close your car loan early. However, some banks levy foreclosure charges of 1% to 3% on the outstanding principal if closed within the initial 1-2 years.
What is the difference between on-road and ex-showroom price?
Ex-showroom price is the base price of the car at the dealership. On-road price includes life tax, registration, insurance, TCS, and handling charges. Banks usually finance 80-90% of the on-road price.