Car Loan EMI Calculator 2026

Calculate your exact car loan EMI instantly. Know the true monthly cost of your dream car. Compare rates from SBI, HDFC, ICICI and 15+ banks.

SBI: 8.85% HDFC: 9.40% ICICI: 9.30% Axis: 9.25%
Car Price / Loan Amount₹8,00,000
Interest Rate9.5%
Loan Tenure5 Years
Monthly EMI
₹16,762
Total Interest
₹2.06L
Total Payable
₹10.06L
Interest Ratio
26%
Best rates from 15+ banksApply for Car Loan →
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About Car Loans

Car Loan EMI — What You Need to Know

A car loan or auto loan is a secured loan where the vehicle itself acts as collateral. Banks typically finance 80-90% of the on-road price of the car. The remaining amount (down payment) is paid by you upfront.

🚗 Loan Amount

Banks finance up to 90% of on-road price for new cars. For used cars, financing goes up to 80% of the value. The minimum down payment is typically 10-20%.

📅 Tenure

Car loans typically have tenures from 1 to 8 years. Most buyers opt for 5-7 year tenures to keep monthly EMIs manageable.

🛡️ Insurance Required

Comprehensive car insurance is mandatory when taking a car loan. Factor in annual insurance premiums (typically ₹15,000-50,000) in your total cost.

💡 Foreclosure

Most banks allow car loan foreclosure after 6-12 EMIs. Pre-closure charges range from 2-6% of outstanding principal.

Rate Comparison

Car Loan Interest Rates 2026

BankInterest RateMax FinancingMax Tenure
SBI Car Loan8.85% onwards90% on-road7 years
HDFC Bank9.40% onwards100% ex-showroom7 years
ICICI Bank9.30% onwards100% ex-showroom8 years
Axis Bank9.25% onwards95% on-road7 years
Kotak Mahindra9.50% onwards90% on-road5 years
Bank of Baroda8.90% onwards90% on-road7 years

FAQ

Car Loan EMI — Common Questions

What is the EMI for a ₹10 lakh car loan?+
For a ₹10 lakh car loan at 9.5% interest for 5 years, the monthly EMI is approximately ₹20,953. Use our calculator above to compute for any car price and tenure.
Can I get 100% car loan financing?+
Some banks like HDFC and ICICI offer up to 100% ex-showroom price financing for new cars. However, on-road price includes registration, insurance and accessories which you typically pay yourself.
What is the minimum salary for a car loan?+
Most banks require a minimum monthly salary of ₹20,000-25,000 for car loans. The car loan EMI should not exceed 20-25% of your monthly take-home salary.
Is car loan better than using savings?+
If your savings earn less than 9% returns, paying cash is better. If your investments earn more than the car loan interest rate, take the loan and keep your savings invested.