Calculate Your New Car Loan EMI

Monthly Loan EMI
₹ 14,347
Fourteen Thousand Three Hundred And Forty Seven
Loan Amount
₹
One Lakh
1 Lac 2 Cr
Loan Tenure
Years
1 7
Rate Of Interest
%
8 25
Payment Breakdown:
Principal Amount
₹10,00,000
Interest Payable
₹7,21,651
Total Amount Payable
₹17,21,651

EMI Payment Schedule

Year Principal paid yearly
(A)		 Interest paid yearly
(B)		 Total Payment
(A + B)		 Balance Loan Paid
To Date

What is Car Loan EMI?

Car Loan EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your car loan. It includes both the principal loan amount and the interest charged by the lender. Calculating your EMI helps you plan your finances and choose a loan amount and tenure that suits your budget.

How is Car Loan EMI Calculated?

Car Loan EMI is calculated using the following formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

Where:

  • P = Principal loan amount
  • r = Monthly interest rate (Annual rate ÷ 12)
  • n = Number of monthly installments (tenure in months)

Key Features of Car Loans at LoanFatafat

Instant Approval

Get car loan approval within hours with minimal documentation and a seamless online process.

Competitive Interest Rates

Attractive interest rates starting from 7.5% per annum with flexible repayment options.

High Loan Amount

Avail car loans up to ₹50 lakhs based on your income and credit profile.

Flexible Tenure

Choose repayment tenure up to 7 years to make your monthly EMIs affordable.

Transparent Pricing

No hidden fees or charges. Full transparency in loan terms and conditions.

Quick Disbursal

Funds disbursed to your account within 24-48 hours of approval for a hassle-free experience.

Car Loan Interest Rates Comparison

Loan Amount Interest Rate Range Processing Fee Max Tenure
₹1,00,000 - ₹5,00,000 7.5% - 9.5% Up to 1.5% 5 Years
₹5,00,001 - ₹10,00,000 7.7% - 10% Up to 1% 6 Years
₹10,00,001 - ₹25,00,000 8% - 10.5% Up to 0.8% 7 Years
₹25,00,001 - ₹50,00,000 8.5% - 11% Up to 0.5% 7 Years

Factors Affecting Your Car Loan EMI

1. Credit Score

A high credit score (750+) can secure lower interest rates, reducing your EMI. Lower scores may lead to higher rates or loan rejection.

2. Income and Employment

Stable income and employment history influence loan eligibility and interest rates. Higher income allows for larger loan amounts.

3. Vehicle Type and Value

The loan amount depends on the vehicle's ex-showroom price. Lenders typically finance up to 80-90% of the car's value.

4. Debt-to-Income Ratio

A lower debt-to-income ratio increases your chances of securing competitive rates and higher loan amounts.

5. Loan Tenure

Longer tenures reduce monthly EMIs but increase total interest paid. Shorter tenures increase EMIs but save on interest.

Tips to Reduce Your Car Loan EMI

1. Improve Your Credit Score

Pay EMIs and credit card bills on time, reduce credit utilization, and clear outstanding debts to improve your score.

2. Compare Lenders

Evaluate interest rates, processing fees, and terms from multiple lenders to find the most cost-effective car loan.

3. Negotiate Rates

Leverage a good banking relationship or high credit score to negotiate better interest rates with your lender.

4. Opt for Longer Tenure

Choose a longer tenure to reduce monthly EMIs, but be mindful of the higher total interest paid over time.

5. Make a Higher Down Payment

Pay a larger down payment to reduce the loan amount, which lowers your EMI and total interest.

Ready to Apply for Your Car Loan?

Drive your dream car with competitive interest rates starting from 7.5% per annum. Apply now for instant approval and fast disbursal!

Apply Now - Get Instant Approval

Frequently Asked Questions

Get answers to common questions about car loans

A car loan is a secured loan provided by banks or NBFCs to finance the purchase of a vehicle. The vehicle serves as collateral. You receive a lump-sum amount and repay it through fixed monthly installments (EMIs) over a tenure of up to 7 years. Interest rates depend on your credit profile, income, and lender policies.

General eligibility criteria include:
  • Age: 21-60 years for salaried and self-employed individuals
  • Income: Minimum monthly income of ₹20,000 for salaried; stable business income for self-employed
  • Employment: At least 1 year with current employer for salaried; 2 years in business for self-employed
  • Credit Score: Preferably 750+ for better rates
  • Valid KYC documents: PAN card, Aadhaar card, address proof, and vehicle quotation
Requirements may vary by lender.

Loanfatafat.in offers instant approval within hours upon submitting all required documents. Funds are typically disbursed within 24-48 hours after verification, ensuring a quick and efficient process.

Required documents include:
  • Identity & Address Proof: Aadhaar Card, PAN Card, Voter ID/Passport/Driving License, and utility bills (not older than 3 months).
  • For Salaried Individuals: 3 months' salary slips, 6 months' bank statements, Form 16 or ITR for the last 2 years.
  • For Self-Employed Individuals: 2 years' ITR, 6 months' bank statements, business registration proof, or GST registration.
  • Vehicle Documents: Proforma invoice, vehicle quotation, and insurance details.
Documents are verified online for faster processing.

Yes, most lenders allow prepayment or foreclosure after a minimum period (typically 6-12 months). For floating-rate car loans, RBI mandates no prepayment penalties. Fixed-rate loans may incur a penalty (1-2% of outstanding amount). Confirm terms with your lender.

A CIBIL score of 750+ enhances your chances of loan approval and secures lower interest rates. Scores below 750 may result in higher rates or rejection. Loanfatafat.in provides a free CIBIL score check without affecting your credit rating.

Car loans may include processing fees (0.5-1.5% of loan amount), documentation fees, and GST on charges. Loanfatafat.in ensures transparency by detailing all fees upfront. Always review the loan agreement for clarity.