Car / Personal Loan EMI Calculator
Calculate monthly EMI for car loans, personal loans & two-wheeler loans. Compare total interest across options.
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Typical car loan rates: 7.5% – 12%
Car Loan vs Personal Loan — Which is Better?
When financing a vehicle purchase, you typically have two options: a car loan (secured) or a personal loan (unsecured). Here's how they compare:
| Feature | Car Loan | Personal Loan |
|---|---|---|
| Interest Rate | 8% – 13% p.a. | 10.5% – 24% p.a. |
| Collateral | Vehicle (hypothecation) | None required |
| Down Payment | 10–25% of vehicle cost | None (100% finance) |
| Tenure | 1–7 years | 1–5 years |
| Processing Time | 2–5 days | 1–3 days |
Current Car Loan Rates
- SBI Car Loan: 8.65% – 10.15% p.a.
- HDFC Car Loan: 8.75% – 11.00% p.a.
- ICICI Car Loan: 9.00% – 12.50% p.a.
- Axis Bank: 8.75% – 11.25% p.a.
Frequently Asked Questions
The monthly EMI for a ₹8 lakh car loan at 9.5% annual interest for 5 years is approximately ₹16,764. Total interest paid will be about ₹2.06 lakh, making the total repayment about ₹10.06 lakh.
Most banks finance up to 80–90% of the on-road price of the vehicle. However, some banks offer 100% financing for customers with excellent credit scores (750+) and stable income. You'll typically need to pay 10–20% as a down payment.
Required documents typically include: identity proof (Aadhaar, PAN), address proof, last 3 months' salary slips, 6 months' bank statements, Form 16, and the vehicle's proforma invoice. Self-employed individuals need ITR for the last 2 years.
Most banks require a minimum CIBIL score of 700–720 for a car loan. A score above 750 gets the best interest rates. Some NBFCs may approve loans with scores as low as 650, but at higher interest rates.
Car loan interest is generally not tax-deductible for personal vehicles. However, if the vehicle is used for business purposes, you can claim the interest as a business expense under Section 37(1). Self-employed individuals and business owners can thus benefit from tax savings.