Find the EMI on a new or used car loan. Enter the loan amount after your down payment, the rate, and the tenure to see the EMI and the total interest.
How much down payment should I make?
Most lenders finance 80% to 90% of the on-road price, so 10% to 20% down is the minimum. Paying more down is almost always worth it: every extra ₹1,00,000 down on a 5 year loan at 9.5% saves about ₹26,000 in interest and lowers the EMI by ₹2,100.
Do banks lend on the ex-showroom price or the on-road price?
It varies, and it matters. Ex-showroom is the base price. On-road adds RTO registration, road tax, insurance, and accessories, which together add roughly 10% to 15%. A bank that funds 85% of ex-showroom leaves you covering far more cash than one that funds 85% of on-road.
What tenure should I pick for a car loan?
Three to five years for most buyers. A seven year loan cuts the EMI but you will owe more than the car is worth for years, because cars lose roughly 15% to 20% of their value in year one alone. Never take a tenure longer than you plan to keep the car.
Why are used car loan rates higher?
The collateral is worth less and falls in value faster, so the lender prices the extra risk. New car loans commonly sit near 9% to 11%, while used car loans run 12% to 16%. Change the rate in the form to compare the two properly.
Can I prepay a car loan?
Yes, but check the charge first. Most car loans are fixed rate, and the RBI ban on foreclosure charges applies only to floating rate loans. Lenders commonly charge 3% to 6% of the outstanding principal, which can wipe out the interest you hoped to save.
Is the interest on a car loan tax deductible?
Not for a salaried person buying a personal vehicle. If you are self-employed and the car is used for business, the interest and the depreciation can be claimed as a business expense. Keep the usage records if you plan to claim it.