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IndusInd Bank Car Loan EMI Calculator

IndusInd Bank Car Loan Calculator India 2022

Last Updated 05th Jan 2022

  • Get monthly EMI as low as ₹ 1,980 per lakh with IndusInd Bank now offering vehicle loans with loan tenure upto 5 years.
  • Lowest car loan interest rate currently offered by IndusInd Bank is 7.00%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,477 for a 2 year loan and ₹ 1,980 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan5 Year loan
₹ 3 Lakh₹ 13,432₹ 7,184₹ 5,940
₹ 6 Lakh₹ 26,864₹ 14,368₹ 11,881
₹ 12 Lakh₹ 53,727₹ 28,735₹ 23,761
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Car Loan EMI Calculator IndusInd Bank

IndusInd Bank Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IndusInd Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With IndusInd Bank offering vehicle loans with loan tenure upto 5 years, the loan EMI can be as low as ₹ 1,980 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by IndusInd Bank are as low as 7.00%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of IndusInd Bank Car Loan

  • Borrower age should be between 21 years to maximum 65 years.
  • Maximum vehicle loan amount offered by IndusInd Bank is upto 85% of ex-showroom price.
  • Interest rates starts @ 7.00% depending upon down payment, net income and other factors.
  • Processing fee in IndusInd Bank is 5.00% of the cost of the car Minimum ₹ 2,500 .

Car Loan EMI Calculator IndusInd Bank at different tenure

Car Loan EMI for different loan amounts and tenures @ 7.00% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,477₹ 3,088₹ 1,980₹ 1,509
3 Lakh₹ 13,432₹ 9,263₹ 5,940₹ 4,528
5 Lakh₹ 22,386₹ 15,439₹ 9,901₹ 7,546
10 Lakh₹ 44,773₹ 30,877₹ 19,801₹ 15,093
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 7.00% interest rate offered by IndusInd Bank for different tenures
2 years 3 years 5 years
IndusInd Bank EMI for a loan amount ₹ 1 Lakh at 7.00% ₹ 4,477 ₹ 3,088 ₹ 1,980
Total amount you pay back to the bank including principal and interest ₹ 1,07,454 ₹ 1,11,158 ₹ 1,18,807
Interest you have to pay over loan tenure ₹ 7,454 ₹ 11,158 ₹ 18,807

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 1,980. However, you pay an interest of ₹ 18,807 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from IndusInd Bank at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,477 and pay an interest of only ₹ 7,454 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting IndusInd Bank Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from IndusInd Bank. If you apply for a higher loan amount, your monthly EMI will be high. IndusInd Bank gives maximum loan of 85% of ex-showroom price of the car.
  • Interest rate - Interest rates is the rate charged by IndusInd Bank on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by IndusInd Bank is 7.00%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in IndusInd Bank. Longer loan tenure means lower car loan EMI. Generally, IndusInd Bank offers loan for a maximum tenure of 7 years.

IndusInd Bank Car Loan Calculator Formula

Emi Calculator Formula


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Here is an illustration of how IndusInd Bank Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 85% of ex-showroom price

n = tenure in months. For IndusInd Bank, this can be 7 years.

r = rate of interest per annum. Current IndusInd Bank interest on car loan is 7.00%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your IndusInd Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. IndusInd Bank provides an LTV upto 85 % of ex-showroom price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, IndusInd Bank would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – IndusInd Bank calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – IndusInd Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. IndusInd Bank's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on IndusInd Bank Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 21 and 65 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 7.00% to 18.00%.
    • Lowest EMI of ₹ 1,509 per lakh.
  • Processing Fees: 5.00% of loan amount. Minimum ₹ 2,500
  • IndusInd Bank vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in IndusInd Bank is 3%. When you prepay, the outstanding balance on your vehicle loan reduces. IndusInd Bank gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.


Why should I calculate IndusInd Bank loan EMI before taking a loan?

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your IndusInd Bank housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by IndusInd Bank on Car loan?

IndusInd Bank offers car loan at 7.00% interest rate and hence lowest EMI on per lakh loan amount is ₹ 2,059

Can I prepay my IndusInd Bank car loan?

IndusInd Bank offers you an option of prepayment at 3% charges.

Is there any processing charge on car loan from IndusInd Bank?

Car Loan from IndusInd Bank charges a processing fee of 5.00% of loan amount Minimum.₹ 2,500

Will I get the car loan from IndusInd Bank if I have a bad credit score?

No, for taking a loan from IndusInd Bank, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with IndusInd Bank?

Yes, you can opt for a co-applicant to take car loan from IndusInd Bank that will increase your car loan eligibility as the income of the co-applicant is also taken into account.

IndusInd Bank Car Loan Reviews 4/5  by 1 customers
MyLoanCare Service
Banks Service
Ravina Malik, Karnal
Reviewed on 08th Apr 2017
4 / 5 stars
IndusInd Bank Car Loan Availed in Mar-18

Their approach is very pleasing. Satisfactory loan experience

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IndusInd Bank Car Loan News - Jan 2022
  • 2021-11-24 : IndusInd Bank Revises Car Loan Rates
    IndusInd Bank has revised car loan rates by 1 per cent. The new car loan rates now start at 7 per cent.
  • 2021-10-05 : IndusInd Bank Advances Grow by 10% Y-O-Y
    IndusInd Bank has posted a growth in advances by 10% on a Y-O-Y basis. Retail Deposits and Deposits from Small Business Customers amounted to Rs 1,11,749 crore as of 30 September 2021 as compared to Rs 1,05,737 crore as of 30 June 2021.
  • 2021-09-03 : IndusInd Bank partners with Honda cars
    IndusInd Bank has joined hands with Honda Cars India Limited (HCIL) to offer finance schemes. The lender is offering customised financing options for the customers of Honda Amaze and Honda City like lower EMI, flexible tenure and 100% finance of car (ex-showroom price).
  • 2021-02-26 : IndusInd Bank to grow loan book by 15-18%
    IndusInd Bank is expecting to grow its loan portfolio by 15-18% year-on-year for the next two financial years under its fifth planning cycle.The Bank’s year-on-year growth in advances which include home, personal, LAP, two-wheeler car and gold loan along with business and mudra loan was flat at Rs 2.07 trillion until December 2020. Its deposits which include fixed and recurring deposits, grew by 10% to Rs 2.39 trillion.
  • 2021-01-08 : IndusInd Bank reported 11% growth in Q3 deposits
    IndusInd Bank posted a 3.2% quarter-on-quarter growth in the net advances which include home, personal, car, two-wheeler, gold and education loan along with business and mudra loans in the December quarter. Further, the bank also posted a 5% quarterly growth in deposits which includes fixed and recurring deposits.
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