Is Car Loan interest reducing or flat?

Banks typically offer reducing balance rates for car loans, which is standard. However, many private dealerships offer 'Flat Rates' which sound lower (e.g. 7%) but are mathematically much more expensive than a 10% reducing rate. Always insist on a reducing balance loan.

What is a good tenure for a car loan?

Financial experts recommend keeping your car loan tenure to 36 or 48 months. Longer tenures like 84 months drastically increase your total interest paid on a depreciating asset.

Car Loan EMI Calculator

Don't rely on dealership math. Calculate your exact EMI, see your total interest outgo, and optimize your vehicle financing.

＋Equis / Liability Analytics

FORM AMRT · REV. 02

Loan Amount

Principal

₹

Interest Rate

Annual Rate (Reducing)

Tenure

Duration in Months

LIABILITY

Cost of Debt Ledger

Base EMI (Without GST)₹16,801/mo

Total Bank Interest+₹2,08,089

Processing Fee (w/ GST)+₹4,720

Total Repayment₹10,12,809

The Brutal Truth

Because of GST on interest and processing fees, your 9.5% loan is actually costing you roughly:

~5.32% Effective Annual Rate

Base EMI₹16,801

Total Repayment₹10,12,809