Free car loan calculator for new, used and electric vehicles. Monthly EMI with full cost breakdown.
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⚠️ Estimates only. Not financial advice. Consult a licensed professional.
Our tools show you the numbers — find the right lender below.
The showroom sticker price is just the beginning of your car purchase cost. Registration, road tax, insurance, and handling charges add 10–15% to the ex-showroom price before you even consider loan interest. Understanding the complete cost structure — and comparing it across financing options — is essential to making a financially sound vehicle purchase decision.
Ex-Showroom Price: ₹12,00,000
RTO Registration Fee: ₹45,000
Road Tax (varies by state): ₹72,000
1st Year Insurance: ₹35,000
Handling/TCS/Accessories: ₹15,000
On-Road Price: ₹13,67,000
Down Payment (20%): ₹2,73,400
Loan Amount: ₹10,93,600
Registration and road tax rates vary significantly by state. Delhi, Karnataka, and Maharashtra have among the highest combined taxes. EV purchases are exempt from road tax and registration fees in Delhi, with similar exemptions in several other states.
Many buyers choose the longest available tenure to minimise monthly EMI, not realising the substantial additional interest cost involved. Here is a direct comparison for a ₹10 lakh car loan at 10%:
3-year tenure: EMI ₹32,267 | Total Interest ₹1,61,612 | Total ₹11,61,612
5-year tenure: EMI ₹21,247 | Total Interest ₹2,74,820 | Total ₹12,74,820
7-year tenure: EMI ₹16,601 | Total Interest ₹3,94,484 | Total ₹13,94,484
Choosing 7 years over 3 years: ₹2,32,872 more in interest for the same loan
Additionally, the car's market value falls below the outstanding loan amount ("being underwater on the loan") when you have a small down payment and long tenure. If you need to sell the car in year 2 of a 7-year loan, you may owe more than the car is worth.
PSU Banks (SBI, Bank of Baroda): 7.5–10.5% — best rates for existing customers with strong profiles. Slightly slower processing (3–5 days).
Private Banks (HDFC, ICICI, Axis): 8.5–11% — fast processing (same day for pre-approved customers). Good for those with existing banking relationships.
Manufacturer Finance Arms: Maruti Suzuki Finance, Hyundai Motor Finance, Kia Finance — rates vary 9–13%. Convenient at dealership but not always cheapest. Sometimes offer special 0% or subsidised rate schemes on specific models.
NBFCs: Bajaj Finserv, Shriram Finance (specialised for used cars) — 12–18%. More accessible for lower credit scores but higher rates.
EV loans from banks often qualify for preferential rates of 7–9% under green lending guidelines. FAME-II subsidies reduce the vehicle purchase price by ₹10,000–₹1,50,000 depending on battery capacity and vehicle type. State government EV policies add further incentives: Delhi offers zero road tax and registration fee; Maharashtra and Gujarat provide purchase subsidies of ₹10,000–₹25,000 additionally.
The running cost advantage of EVs significantly changes the true ownership cost calculation. A mid-range EV costing ₹18 lakhs ex-showroom may cost less to own over 5 years than a similarly priced petrol car once fuel savings (approximately ₹3,000–₹5,000/month for high-mileage users) are factored into the analysis.
New car loans: 7.5–11% from banks, based on ex-showroom price, straightforward processing. Used car loans: 12–18% from banks and 15–24% from NBFCs, based on independently assessed fair market value. Lenders typically fund 70–80% of assessed value for used vehicles, and the assessment itself costs ₹2,000–₹5,000. For used cars above 5 years old, most banks decline — NBFCs specialising in used vehicles (Shriram, Mahindra Finance) are the primary lenders for older vehicles.