Calculate your car loan EMI, total interest, and repayment schedule for a new or used car.
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View bank rate comparisonCar loans use the same reducing-balance EMI formula as home loans, but typically carry a higher interest rate and a shorter tenure (usually 1–7 years), since a car depreciates in value while a home usually appreciates. Most lenders finance 80–90% of the on-road price, so you'll need to arrange the rest as a down payment.
A shorter tenure means a higher EMI but far less total interest paid — worth considering since cars lose value quickly, and you don't want to be paying off a loan on a car worth much less than the outstanding balance.
Yes, used car loans usually carry a higher interest rate (often 1-3% more) than new car loans, and lenders finance a smaller percentage of the vehicle's value.
It's the percentage of the car's on-road price a lender will finance — commonly 80-90% for new cars. You pay the remaining amount as a down payment.
Some banks charge a foreclosure fee (typically 2-5% of the outstanding amount) on car loans, unlike home loans where floating-rate prepayment is free for individuals. Check your loan agreement.