Car Loan Calculator

A down payment of 20-25% is ideal as it reduces your loan amount and EMI burden. While some lenders offer car loans with just 10% down payment, paying more upfront saves you interest costs and helps secure better interest rates.

To secure the best rates: maintain a credit score above 750, make a higher down payment (25%+), compare offers from multiple banks and NBFCs, negotiate with your existing bank for preferential rates, avoid adding insurance to the loan, and consider buying during festive season offers.

Required documents include: identity proof (Aadhaar/PAN card), address proof (utility bills/rent agreement), income proof (salary slips for salaried, ITR for self-employed), bank statements (3-6 months), passport size photographs, and vehicle quotation from the dealer. Some lenders may ask for additional documents.

General eligibility: Age 21-65 years, minimum income of ₹2.5-3 lakhs per annum for salaried individuals, stable employment (at least 1 year), credit score above 650 (preferably 750+). Self-employed individuals need 2+ years of business vintage and stable income proof.

Yes, but only if the car is used for business purposes. Self-employed individuals and business owners can claim depreciation on the vehicle and interest deduction. Salaried individuals using the car solely for personal use cannot claim tax benefits. Interest on car loan for business use can be claimed under business expenses.

Yes, most lenders allow prepayment or foreclosure of car loans. There may be prepayment charges of 2-5% on the outstanding amount, especially during the first 1-2 years. Some banks offer zero prepayment charges after 6-12 months. Check your loan agreement for specific terms.

Processing fees range from 0.5% to 2% of the loan amount, typically around 1%. For a ₹6 lakh loan, expect to pay ₹6,000-12,000 as processing fee. This fee is non-refundable and charged upfront. During festive offers, banks may waive or reduce processing fees.

New car loans offer lower interest rates (8.5-11%), higher loan amounts (up to 90% of car value), and longer tenure (up to 7 years). Used car loans have higher rates (12-15%), lower loan-to-value ratio (70-80%), shorter tenure (up to 5 years), and stricter eligibility. Vehicle age at loan closure shouldn't exceed 15 years for used cars.

Insurance is mandatory, but you can buy it separately rather than bundling with the loan. Buying insurance separately often costs less. However, bundling provides convenience and ensures comprehensive coverage. Compare both options - loan EMI with insurance vs. separate insurance payment - before deciding.

Longer tenure means lower EMI but higher total interest. For a ₹6 lakh loan at 9.5%: 3 years = ₹19,227 EMI (total interest ₹92,172), 5 years = ₹12,553 EMI (total interest ₹1,53,180), 7 years = ₹9,806 EMI (total interest ₹2,23,704). Choose tenure based on your monthly budget and total cost preference.

Missing EMIs leads to late payment charges (2-3% per month on overdue amount), negative impact on credit score, vehicle repossession risk after 3+ missed payments, and difficulty securing future loans. If facing financial issues, contact your lender immediately to discuss restructuring or moratorium options.

You cannot directly transfer a car loan. Options include: selling the car and using proceeds to close the loan, having buyer pay you enough to clear the loan, or arranging a loan takeover where buyer applies for a new loan to pay off your existing loan. Bank's No Objection Certificate (NOC) is required for ownership transfer.