5 Lakh Car Loan EMI: ₹7,719 a Month Over 7 Years at 7.7%

Your first job has settled, the down payment is saved, and a small hatchback is on the shortlist. A 5 lakh car loan EMI is ₹10,067 a month over 5 years or ₹7,719 over 7 at 7.7% p.a., the lowest floor any of 30 lenders printed on 9 November 2026. At the median 8.5% p.a. it's ₹10,258 or ₹7,918.

By Pankaj Pandey · Content Writer Updated 9 November 2026 Reviewed by BankCreds Financial Experts

₹5 lakh car loan EMI by tenure

Lowest published rate (UCO Bank) at 7.7% p.a.
Loan amount	3 years	4 years	5 years	6 years	7 years
₹5 lakh	₹15,599 interest ₹61,564	₹12,136 interest ₹82,528	₹10,067 interest ₹1,04,020	₹8,694 interest ₹1,25,968	₹7,719 interest ₹1,48,396

Middle of the published floors at 8.5% p.a.
Loan amount	3 years	4 years	5 years	6 years	7 years
₹5 lakh	₹15,784 interest ₹68,224	₹12,324 interest ₹91,552	₹10,258 interest ₹1,15,480	₹8,889 interest ₹1,40,008	₹7,918 interest ₹1,65,112

Highest published ceiling at 17.96% p.a.
Loan amount	3 years	4 years	5 years	6 years	7 years
₹5 lakh	₹18,066 interest ₹1,50,376	₹14,677 interest ₹2,04,496	₹12,686 interest ₹2,61,160	₹11,393 interest ₹3,20,296	₹10,497 interest ₹3,81,748

Reducing-balance EMI on the loan amount alone. Processing fee, insurance and registration are paid separately.

Published starting rates for this loan

Lender	New car rate	Max tenure	Funding
UCO Bank PSU bank	7.7% to 10.25% p.a.	Up to 7 years	Up to 90% of on-road price
Bank of Maharashtra PSU bank	7.7% to 12% p.a.	Up to 7 years	Up to 100% of on-road price
IDBI Bank Private bank	7.75% to 8.9% p.a.	Up to 7 years	Not published by the lender
Indian Bank PSU bank	7.75% to 9.1% p.a.	Up to 7 years	Up to 90% of on-road price
Canara Bank PSU bank	7.75% to 10.95% p.a.	Up to 7 years	Up to 90%
Saraswat Bank Co-operative bank	from 7.8% p.a.	Up to 7 years	Up to 95%
Indian Overseas Bank PSU bank	7.85% to 8.85% p.a.	Up to 7 years	Up to 90% of on-road price
Union Bank of India PSU bank	7.85% to 10.25% p.a.	Up to 7 years	Up to 90% of on-road price
Bank of Baroda PSU bank	7.85% to 11.55% p.a.	Up to 7 years	Up to 90% of on-road price
Punjab & Sind Bank PSU bank	7.85% to 14.3% p.a.	Up to 7 years	Up to 100% of on-road price

5 lakh car loan EMI at the lowest, median and highest published rates

A floor is the lowest rate a lender prints, and 7.7% p.a. is the lowest in the table above. At that rate the 5-year EMI is ₹10,067 and the 7-year EMI ₹7,719, a gap of ₹2,348 a month (10,067 minus 7,719). Interest is ₹1,03,994 against ₹1,48,361, so the two extra years cost ₹44,367 (1,48,361 minus 1,03,994).

At the median 8.5% p.a. the EMIs are ₹10,258 and ₹7,918. The 17.96% p.a. column is the ceiling IndusInd Bank reported to the RBI for July to September 2026, not an offer; it lifts the 5-year EMI to ₹12,686 and interest to ₹2,61,150.

The salary a ₹5 lakh car loan needs

Our income figures use FOIR 50%: all EMIs together at or under half of take-home, so the EMI sets the salary. At the median 8.5% p.a., the 5-year loan's ₹10,258 EMI needs ₹20,516 a month (10,258 times 2); the 7-year loan's ₹7,918 needs ₹15,836.

Any bike EMI or card instalment you already pay comes off that half first. Lenders add their own minimum incomes and age limits; see car loan eligibility.

The car ₹5 lakh buys

The loan isn't the car's price: lenders fund the on-road price (ex-showroom plus registration, road tax and insurance) minus your margin. With 10% down, ₹5 lakh covers an on-road price of ₹5,55,556 (5,00,000 divided by 0.9) and your share is ₹55,556. With 20% down it stretches to ₹6,25,000 (5,00,000 divided by 0.8), your share ₹1,25,000.

UCO Bank, Union Bank of India and Canara Bank publish 90% of on-road price; SBI and ICICI Bank up to 100%, HDFC Bank up to 100% for selected models.

Which lenders start lowest for a ₹5 lakh car loan

Two banks share the 7.7% p.a. floor, with strings attached. UCO Bank asks for a CIBIL score of at least 825; Bank of Maharashtra wants 800 and above plus a salaried borrower.

Watch the amount lines. Canara Bank lists 7.75% against women borrowers, its CRG-PRIME grade and sanctioned limits above ₹15 lakh, and 7.80% for everyone else. Union Bank of India's 7.85% needs a CIC score of 825 or more (800 to 824 if salaried). SBI starts at 8.55% for scores of 800 and above over 3 to 5 years; at 7 years that floor lapses. The car loan interest rates page carries every condition.

How to choose the right car loan, and mistakes to skip

Pick the tenure first, then the lender. Over 3 years the interest at 7.7% is ₹61,567, a saving of ₹42,427 on the 5-year figure (1,03,994 minus 61,567) if you can carry ₹15,599 a month. Try your own figures on the car loan EMI calculator, or see the 4 lakh and 6 lakh pages.

Common mistakes: trusting a floor without reading who gets it, skipping the processing fee (HDFC Bank's ₹3,500 minimum beats 0.5% of ₹5 lakh), and fixing the rate without checking the exit cost. The RBI's 2025 directions on pre-payment charges bar prepayment fees on floating-rate loans to individuals for personal use from 1 January 2026; fixed-rate loans aren't covered. The car loan hub links every lender.

Other loan amounts

₹3 lakh ₹4 lakh ₹6 lakh ₹7 lakh ₹8 lakh ₹10 lakh ₹12 lakh ₹15 lakh ₹20 lakh

Frequently asked questions

What is the EMI for a 5 lakh car loan for 7 years?

₹7,719 a month at 7.7% p.a., the lowest published floor, and ₹7,918 at the median 8.5% p.a. Total repaid over 7 years at 7.7% is ₹6,48,361, so interest is ₹1,48,361. Lenders printing a rate this low tie it to a credit score.

What is the EMI for a 5 lakh car loan for 5 years?

₹10,067 a month at 7.7% p.a. and ₹10,258 at 8.5% p.a. Interest over 5 years at the lowest rate is ₹1,03,994, which is ₹44,367 less than over 7 years (1,48,361 minus 1,03,994), in exchange for ₹2,348 more each month (10,067 minus 7,719).

What is the EMI for a 5 lakh car loan for 3 years?

₹15,599 a month at 7.7% p.a. and ₹15,784 at 8.5% p.a. Interest over 3 years at the lower rate is ₹61,567, the smallest in our table. The catch is the bill: at the median rate, FOIR 50% needs a take-home of ₹31,568 (15,784 times 2).

How much interest is charged on a 5 lakh car loan?

Rate and tenure decide it. At the 7.7% p.a. floor you pay ₹61,567 over 3 years, ₹1,03,994 over 5 and ₹1,48,361 over 7. At the median 8.5% p.a. the 5-year figure is ₹1,15,496; at the 17.96% p.a. disclosed ceiling, 7-year interest reaches ₹3,81,765.

What salary is required for a 5 lakh car loan?

Using FOIR 50% at the median 8.5% p.a., a 5-year loan needs a take-home of ₹20,516 a month (twice the ₹10,258 EMI) and a 7-year loan ₹15,836 (twice ₹7,918). Existing EMIs come off that limit first, and lenders' own minimum incomes can be higher.

How much down payment is needed for a 5 lakh car loan?

Many banks fund 90% of the on-road price, so ₹5 lakh stretches to ₹5,55,556 on-road (5,00,000 divided by 0.9) with a ₹55,556 down payment. SBI, ICICI Bank and Axis Bank publish up to 100% funding, where the loan can match the on-road price.

Which bank is best for a 5 lakh car loan?

No one bank fits all; compare published floors and their conditions. UCO Bank (CIBIL 825 and above) and Bank of Maharashtra (800 and above, salaried) print the 7.7% p.a. floor. SBI starts at 8.55% p.a. for scores of 800 and above over 3 to 5 years.

Can I prepay a 5 lakh car loan early?

Yes. Since 1 January 2026 the RBI's 2025 directions on pre-payment charges stop lenders charging anything when an individual repays a floating-rate car loan early, in part or full, no lock-in. Fixed-rate loans sit outside the rule, and closure charges still appear: HDFC Bank prints 5% of principal outstanding on loans from 1 December 2025.

Related car loan pages

Disclaimer. Car loan rates are indicative and subject to change. The final rate depends on the lender's assessment of your profile and the car. Last verified on 9 November 2026. BankCreds is not a lender.

Sources

UCO Bank: UCO Bank, Repo latest (Annexure I Retail: UCO Float linked rates)
Bank of Maharashtra: Bank of Maharashtra, Retail Interest Rates (Rate of Interest Retail Loans)
IDBI Bank: IDBI Bank, Interest Rates (Retail Loans: Interest Rate structure for Structured Retail Asset (SRA) Products, Auto Loan; Fixed Rate Loans)
Indian Bank: Indian Bank, Interest Rates on Personal Segment Loan Products: Floating
Canara Bank: Canara Bank, Rates of Interest for Retail Lending Schemes linked to RLLR - 2. Canara Vehicle Loan
Saraswat Bank: Saraswat Co-operative Bank, Interest Rates (Retail Loans)
Indian Overseas Bank: Indian Overseas Bank, Lending Interest Rates (Retail Credit Interest Rates)
Union Bank of India: Union Bank of India, Rate of Interest for Retail Lending Schemes w.e.f. 08.10.2026 (Retail Asset Vertical) - 2. Union Vehicle Loan / Union Green Vehicle Loan
Bank of Baroda: Bank of Baroda, Retail Loans Interest Rates - Baroda Auto Loan (Interest Rate linked to BRLLR / linked to MCLR)
Punjab & Sind Bank: Punjab & Sind Bank, PSB Prime Lending Rate (EBLR rate of interest tables)

Last verified: 9 November 2026

Written by Pankaj Pandey, reviewed by BankCreds Financial Experts

BankCreds does not sell cards or take applications. Fees and rewards change; the bank's own terms on the day you apply are what count, and approval is the bank's decision.