What is the current car loan interest rate in 2026?

Car loan interest rates in 2026 range from 7.5% to 14% p.a. for new cars at major banks. Rates depend on your CIBIL score, income, employment type, loan amount, and the lender.

Can I get 100% car loan financing with zero down payment?

Some banks and NBFCs offer 100% on-road financing (zero down payment), but typically at higher interest rates and only for borrowers with excellent CIBIL scores (750+) and stable income. The standard requirement is 10-20% down payment.

What is the maximum car loan tenure?

The maximum tenure for new car loans is 7 years (84 months). Used car loans typically have a maximum of 5 years. Longer tenures reduce EMI but increase total interest significantly.

What CIBIL score is required for a car loan?

A CIBIL score of 700+ is generally required for car loan approval. Scores above 750 qualify for the best interest rates. Some lenders accept scores of 650-700 but at higher rates.

Can I prepay my car loan?

Yes. Most banks allow prepayment after 6-12 EMIs. Foreclosure charges are typically 2-5% of the outstanding principal. Some banks offer no-prepayment-penalty after a certain period â€” check your loan agreement.

Car Loan EMI Calculator

Calculate your car loan monthly EMI, total cost of ownership, and complete repayment schedule.

Loan Amount

$100K$10M

Annual Interest Rate

7%20%

Loan Tenure

1 Mo84 Mo

Monthly EMI

$16,801

Total Interest Payable

$208,089

Total Amount Payable

$1,008,089

Principal (79%)Interest (21%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$201,612	$131,230	$70,382	$668,770
Year 2	$201,612	$144,253	$57,359	$524,517
Year 3	$201,612	$158,569	$43,043	$365,948
Year 4	$201,612	$174,308	$27,304	$191,640
Year 5	$201,644	$191,640	$10,004	$0