Car loan EMI for ₹3 lakh to ₹20 lakh
The monthly EMI at 9.5% a year on the amount you borrow, after your down payment.
| Loan | 3 years | 4 years | 5 years | 6 years | 7 years |
|---|---|---|---|---|---|
| ₹3 Lakh | ₹9,610 | ₹7,537 | ₹6,301 | ₹5,482 | ₹4,903 |
| ₹5 Lakh | ₹16,016 | ₹12,562 | ₹10,501 | ₹9,137 | ₹8,172 |
| ₹7 Lakh | ₹22,423 | ₹17,586 | ₹14,701 | ₹12,792 | ₹11,441 |
| ₹8 Lakh | ₹25,626 | ₹20,099 | ₹16,801 | ₹14,620 | ₹13,075 |
| ₹10 Lakh | ₹32,033 | ₹25,123 | ₹21,002 | ₹18,275 | ₹16,344 |
| ₹12 Lakh | ₹38,440 | ₹30,148 | ₹25,202 | ₹21,930 | ₹19,613 |
| ₹15 Lakh | ₹48,049 | ₹37,685 | ₹31,503 | ₹27,412 | ₹24,516 |
| ₹20 Lakh | ₹64,066 | ₹50,246 | ₹42,004 | ₹36,549 | ₹32,688 |
Car loan interest rates in October 2026
SBI's new-car loans start from 8.3% a year. The rate you get depends on your credit score, income and the tenure; used-car loans cost more, often by a couple of percentage points. Dealers often push their partner lender's loan, so compare it with your own bank's offer, which may be cheaper. Check SBI's current rates as a benchmark.
Down payment and tenure: what a ₹10 lakh car really costs
| Down payment | Tenure | EMI | Interest | Total paid |
|---|---|---|---|---|
| ₹1,00,000 | 7 years | ₹14,710 | ₹3,35,605 | ₹13,35,605 |
| ₹1,00,000 | 5 years | ₹18,902 | ₹2,34,101 | ₹12,34,101 |
| ₹2,00,000 | 5 years | ₹16,801 | ₹2,08,089 | ₹12,08,089 |
| ₹3,00,000 | 4 years | ₹17,586 | ₹1,44,137 | ₹11,44,137 |
At 9.5% a year. A bigger down payment and a shorter loan cut the interest sharply. A long, low-EMI loan is tempting, but by year five or six you may still owe a fair amount on a car worth half its price.
What goes into the on-road price
- Ex-showroom price, including GST and any cess.
- Road tax, set by your state, usually a percentage of the price; it varies a lot between states.
- Registration and number plate fees.
- Insurance for the first year (own damage) and third-party cover.
- Optional extras such as an extended warranty or accessories, which you can usually leave out of the loan.
Ask the dealer for an itemised on-road quote, and check which parts the lender will fund before you work out the down payment.
Charges and prepayment
Expect a processing fee plus 18% GST, and sometimes documentation charges. The lender's Key Facts Statement must list every charge and the annual percentage rate (APR) before you sign. Prepayment: floating-rate car loans to individuals sanctioned or renewed from 1 January 2026 can be prepaid or closed with no charge under RBI's 2025 Directions; fixed-rate loans may carry a disclosed foreclosure fee.
Tips for a cheaper car loan
- Get your own bank's quote before you visit the dealer.
- Pay at least 20% down and keep the tenure to 4–5 years if you can.
- Watch for add-ons such as loan insurance bundled into the amount; they raise the EMI.
- Prepay with bonuses. The prepayment calculator works for any EMI loan.
- Check your budget. The loan eligibility calculator shows how much EMI your income can carry. Leave room for fuel, insurance renewals and servicing on top of the EMI.
Frequently asked questions
What is the EMI on an ₹8 lakh car loan?
At 8.3% (SBI's starting rate for new cars in October 2026) it is about ₹16,336 a month over 5 years. At 9.5%, it is about ₹16,801.
How much down payment should I make on a car?
Lenders usually finance up to 80–90% of the on-road price, so 10% is the least most buyers pay. Putting down 20% or more lowers the EMI and the interest, and means you owe less than the car is worth from the start, since a new car loses value fast.
Is the car loan calculated on the ex-showroom or on-road price?
Most banks lend on the on-road price, which includes road tax, registration and the first year’s insurance, though some lend only on the ex-showroom price. This calculator starts from the on-road price, which is what you actually pay.
Can I close a car loan early?
Yes. On floating-rate car loans to individuals sanctioned or renewed from 1 January 2026, RBI bars prepayment and foreclosure charges. Many car loans have a fixed rate, though, and those can carry a foreclosure fee if the Key Facts Statement says so.
What is the 20/4/10 rule for buying a car?
A common rule of thumb: put down at least 20%, borrow for no more than 4 years, and keep the EMI plus running costs under 10% of your monthly income. It keeps a depreciating asset from straining your budget.
What happens after I repay the car loan?
The lender gives you a no-objection certificate (NOC) and Form 35. Submit them at your RTO (or through the Parivahan website) to remove the bank’s hypothecation from the registration certificate, then update your insurance policy.
Sources
- State Bank of India – loan interest rates
- RBI – Pre-payment Charges on Loans Directions, 2025
- Reserve Bank of India
Last updated 6 October 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.