Car Loan EMI Calculator

New-car loan rates range 7.5-10.5% from banks (8.5-12% from NBFCs). Used-car loans are 11-16% reflecting higher risk. Loan against car (existing car as collateral) is the cheapest at 9-12%. Rate varies with CIBIL score, lender category and OEM tie-ups.

Most lenders finance 80-90% of on-road price for new cars, 70-80% for used cars. Stronger credit profiles and electric vehicles often get 100% finance. The calculator supports 0-95% finance-to-value (FTV) — adjust the down payment as per your budget.

Yes — some banks and OEM captives offer balloon EMI where the last 10-15% is a balloon payment. This reduces EMI in early years but creates a lump-sum obligation at the end. Calculator does not natively support balloon EMI — input the balloon-adjusted principal.

Personal-use car loans are not tax-deductible. Self-employed buyers using the car for business can claim interest under Section 37(1) up to the business-use percentage. The depreciation on the car (15% WDV for cars, 30% for second-hand) forms a separate deduction.

Banks typically charge 2-4% on foreclosure for used cars, 0-2% for new cars after 12 EMIs. Some lender-captives allow zero foreclosure. Calculator shows prepayment savings but does not factor foreclosure penalty — compare against the saving to decide.

Most banks require a CIBIL score of 750+. A score of 800+ gives 0.25-0.5% rate concession. Below 700, the application usually gets declined. Calculator does not use CIBIL — input the rate offered by lender to see EMI. Improving score before applying saves significant interest.