Car Loan Calculator

Unlike home loans, many fixed-rate car loans carry prepayment or foreclosure charges (typically 2% to 6% of the outstanding principal). However, some banks offer floating-rate car loans or zero prepayment penalties after a specific period (e.g. 12 months). Check with your lender.

Ex-showroom price is the cost of the car at the dealership excluding registration, road tax, and insurance. The on-road price is the final amount you pay to drive the car out, which includes ex-showroom price, road tax, registration charges, insurance, GST, and handling fees.

A Car Loan Calculator helps you estimate your monthly EMI, total interest outgo, total cost of purchase (vehicle price + interest), and down payment percentage based on the vehicle price, down payment, rate, and tenure.

A down payment of at least 20% of the on-road price is highly recommended. It reduces the interest outgo, keeps the EMI affordable, and prevents you from going "underwater" on a rapidly depreciating asset.

Most banks offer a maximum tenure of 7 years for new cars, and up to 5 years for used cars. Longer tenures reduce the EMI but significantly increase the total interest paid.

Some lenders offer 100% financing on the ex-showroom price of the vehicle for corporate employees or select customers with excellent credit profiles. However, you will still need to pay for registration, road tax, and insurance upfront.

New car loans have lower interest rates and longer tenures, making borrowing cheaper. Used car loans are more expensive but the overall purchase price of a used car is much lower, meaning you borrow less. Compare the total cost of ownership in both cases.

Typically required documents include: 1) Identity and Address Proof, 2) Salary slips of the last 3 months, 3) Bank account statements of the last 6 months, 4) Form 16 or Income Tax Returns, and 5) Car booking receipt or proforma invoice.

Yes, a higher credit score (750+) increases approval chances, ensures faster processing, and helps you secure the lowest available interest rates.

Car loans are secured loans where the vehicle itself acts as collateral (hypothecated to the bank). If you fail to repay, the lender has the legal right to repossess and auction the car to recover the outstanding dues.