Max 7-8 years for most banks. Shorter = less interest.
Typically 0.5%–1% of loan amount
💰 Your Car Loan EMI
Monthly EMI
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Loan Amount
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Total Interest
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Total Payment
₹0
Processing Fee
Car Price / Loan Amount—
Down Payment—
Net Loan Amount—
Interest Rate—
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📊 Principal vs Interest — Year-wise Breakdown
PrincipalInterest
🏦 Car Loan Interest Rate Comparison — April 2026
Bank
Interest Rate
EMI on ₹10L / 7yr
Total Interest
Union Bank
9.00%
₹15,807/mo
₹3.28L
⭐ SBI Car Loan
9.15%
₹15,867/mo
₹3.33L
Bank of Baroda
9.15%
₹15,867/mo
₹3.33L
ICICI Bank
9.25%
₹15,908/mo
₹3.36L
HDFC Bank
9.50%
₹16,009/mo
₹3.44L
Kotak Bank
9.50%
₹16,009/mo
₹3.44L
Axis Bank
9.75%
₹16,114/mo
₹3.53L
Rates as of April 2026. Vary by credit score, model, and down payment. Check bank website before applying.
💡 Prepayment Savings Calculator
See how much interest you save by making a lump sum prepayment.
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💰 How Much Car Loan Can I Get on My Salary?
Monthly Salary
Max EMI (40%)
Max Loan (7yr@9.15%)
Car Budget
₹20,000
₹8,000
₹5.0 Lakh
₹6-7L (with down payment)
₹30,000
₹12,000
₹7.6 Lakh
₹9-10L
₹50,000
₹20,000
₹12.6 Lakh
₹14-16L
₹75,000
₹30,000
₹18.9 Lakh
₹21-24L
₹1,00,000
₹40,000
₹25.2 Lakh
₹28-32L
₹1,50,000
₹60,000
₹37.9 Lakh
₹40-45L
Car Loan Guide — Complete Information
Car loans in India are available from all major banks and NBFCs. The loan covers 80-90% of the on-road price. You pay the remaining 10-20% as down payment. Interest is calculated on reducing balance — so early EMIs pay more interest, later EMIs pay more principal.
Best tip: Negotiate the on-road price down first, then the interest rate. A ₹50,000 reduction in car price saves more than 0.25% interest rate reduction on a 7-year loan.
Documents Required for Car Loan
Identity proof (Aadhaar/PAN), Address proof, 3 months salary slips, 6 months bank statement, Form 16, Car quotation from dealer. Self-employed need ITR of last 2 years.
❓ Frequently Asked Questions
What is the car loan interest rate in India 2026?▼
SBI offers 9.15%, Union Bank 9.0% (lowest), ICICI 9.25%, HDFC 9.5%, Axis 9.75%. Final rate depends on your CIBIL score. Score above 750 = best rate. Below 650 = loan may be rejected or higher rate applied.
How much car loan can I get on ₹30,000 salary?▼
On ₹30,000 salary, max EMI is about ₹12,000 (40% of salary). This qualifies you for roughly ₹7.5-8L car loan at 9.15% for 7 years. With ₹1-2L down payment, you can afford a ₹9-10L car.
Is 7 years car loan a good idea?▼
7 years keeps EMI low but you pay 33% more interest than a 5-year loan. Example: ₹10L at 9.15% — 5yr EMI ₹20,798, total interest ₹2.48L vs 7yr EMI ₹15,867, total interest ₹3.33L. Choose shorter tenure if EMI is affordable.
Can I prepay car loan without penalty?▼
Most banks allow part-prepayment after 6-12 months of EMI payments. SBI, HDFC, ICICI charge no prepayment penalty for floating rate loans. Fixed rate loans may have 2-5% foreclosure charge. Check your loan agreement before prepaying.