Calculate car loan EMI and interest
EMI = P × r × (1+r)^n / ((1+r)^n - 1). For a ₹8 lakh loan at 9% for 5 years: EMI ≈ ₹16,607. Higher down payment or shorter tenure reduces total interest paid.
New car loans: 7-12%. Used car loans: 12-18%. Rates depend on lender, credit score, loan amount, and tenure. Banks offer lower rates than NBFCs. Manufacturer financing may offer promotional rates.
Banks typically finance 80-100% of on-road price for new cars, 70-80% for used cars. Loan amount is also limited by income—EMI shouldn't exceed 15-20% of monthly income.
Shorter tenure = higher EMI but less interest. 3-year loan costs significantly less in interest than 7-year. However, ensure EMI is comfortable. Cars depreciate fast, so avoid owing more than it's worth.
Yes, most car loans allow prepayment. Some have prepayment penalties (1-5% of outstanding) especially in early years. Prepaying saves interest. Check your loan agreement for specific terms.
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