What is Car Loan?
A car loan is a short-tenure secured loan against the vehicle. Tenures typically range from 1 to 7 years and interest rates run higher than home loans because of the shorter horizon and faster depreciation.
Formula
The standard EMI formula applies:
EMI = P × r × (1 + r)^n / [(1 + r)^n − 1] P = loan principal (price − down payment) r = monthly interest rate n = tenure in months
How to use this calculator
Enter the on-road price, your down payment, the dealer/bank interest rate, and tenure (1–7 years). Used-car loans typically carry rates 2–4% higher than new-car loans, so adjust the rate accordingly.