7 Lakh Car Loan EMI: ₹14,093 for 5 Years, ₹10,806 for 7
Chasing the lowest rate on a 7 lakh car loan EMI is worth ₹269 a month over 5 years: ₹14,362 at the 8.5% median floor less ₹14,093 at the 7.7% lowest floor. Over 60 months that 0.8-point gap (8.5 less 7.7) is ₹16,103 of interest (₹1,61,694 less ₹1,45,591).
₹7 lakh car loan EMI by tenure
| Loan amount | 3 years | 4 years | 5 years | 6 years | 7 years |
|---|---|---|---|---|---|
| ₹7 lakh | ₹21,839 interest ₹86,204 | ₹16,991 interest ₹1,15,568 | ₹14,093 interest ₹1,45,580 | ₹12,171 interest ₹1,76,312 | ₹10,806 interest ₹2,07,704 |
| Loan amount | 3 years | 4 years | 5 years | 6 years | 7 years |
|---|---|---|---|---|---|
| ₹7 lakh | ₹22,097 interest ₹95,492 | ₹17,254 interest ₹1,28,192 | ₹14,362 interest ₹1,61,720 | ₹12,445 interest ₹1,96,040 | ₹11,086 interest ₹2,31,224 |
| Loan amount | 3 years | 4 years | 5 years | 6 years | 7 years |
|---|---|---|---|---|---|
| ₹7 lakh | ₹25,293 interest ₹2,10,548 | ₹20,548 interest ₹2,86,304 | ₹17,760 interest ₹3,65,600 | ₹15,950 interest ₹4,48,400 | ₹14,696 interest ₹5,34,464 |
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 |
7 lakh car loan EMI in one look
At 7.7% p.a., the floor UCO Bank and Bank of Maharashtra print, ₹7 lakh costs ₹14,093 a month over 5 years and ₹10,806 over 7. The 8.5% median lifts those to ₹14,362 and ₹11,086.
Seven years cuts the EMI by ₹3,287 (₹14,093 less ₹10,806) but adds 24 instalments of interest: ₹2,07,706 against ₹1,45,591 at the floor, a ₹62,115 gap; at 8.5% it is ₹69,491 (₹2,31,185 less ₹1,61,694).
The top row, 17.96% p.a., is the upper end of IndusInd Bank's disclosed range (charged in July to September 2026, not an offer): a 5-year EMI of ₹17,760 and interest of ₹3,65,610, ₹2,20,019 above the floor's ₹1,45,591.
The salary a 7 lakh car loan needs
Lenders generally cap your EMIs, old and new, at half your take-home pay. Turn that round and the median rate gives a salary floor: ₹28,724 a month for the 5-year loan (twice the ₹14,362 EMI) and ₹22,172 for 7 years (twice ₹11,086).
An existing instalment shrinks the room: a ₹3,000 bike EMI makes ₹14,362 plus ₹3,000, or ₹17,362, so the 5-year loan wants twice that, ₹34,724. Lenders add their own income and age limits; see the car loan eligibility guide.
The car a ₹7 lakh loan pays for
A car loan funds a share of the on-road price. With 10% down the loan is 90% of the price: ₹7,00,000 divided by 0.9 is ₹7,77,778, the ₹77,778 difference being your down payment. With 20% down, ₹7,00,000 divided by 0.8 is ₹8,75,000, leaving ₹1,75,000 to pay.
SBI, ICICI Bank, Axis Bank and Tata Capital print 100% of on-road price, so a qualifying buyer could put nothing down. UCO Bank, Union Bank of India and Canara Bank lend 90%; PNB's 15% margin leaves 85%. Also see 6 lakh and 8 lakh.
Which lenders start lowest for a 7 lakh loan
- UCO Bank: 7.7% p.a. floating, CIBIL 825 or higher; band to 10.25%.
- Bank of Maharashtra: 7.7% p.a. for salaried borrowers at 800 and above (RLLR less 0.60%).
- Indian Bank and IDBI Bank: 7.75% p.a., no condition printed; IDBI's band ends at 8.9%.
- Canara Bank: 7.75% only for women in CRG-PRIME with a sanctioned limit above ₹15 lakh, so ₹7 lakh misses it; the next line is 7.80%.
Amount note: City Union Bank takes its 10% margin on ex-showroom price up to ₹10 lakh. All 30 lenders are on the car loan interest rates table; lender pages hang off the car loan hub.
Choosing the right car loan at ₹7 lakh, and what trips people up
Begin with the condition behind the floor: below 825, UCO's 7.7% isn't yours. Set the tenure from the salary rule, not the smallest EMI, then test them on the car loan EMI calculator.
Three mistakes: stretching to 7 years and paying ₹62,115 more interest at the floor (₹2,07,706 against ₹1,45,591); choosing fixed because it sounds safe, though fixed loans keep their foreclosure charge; and signing without reading the Key Facts Statement.
The RBI's 2025 directions on pre-payment charges bar any fee for closing or part-paying a floating-rate personal car loan sanctioned from 1 January 2026, with no waiting period.
Frequently asked questions
What is the EMI for a 7 lakh car loan for 7 years?
What is the EMI for a 7 lakh car loan for 5 years?
What is the EMI for a 7 lakh car loan for 3 years?
How much interest will I pay on a 7 lakh car loan?
What salary is required for a 7 lakh car loan?
How much down payment do I need for a 7 lakh car loan?
Which bank is best for a 7 lakh car loan?
Can I prepay a 7 lakh car loan early without a penalty?
Related car loan pages
- Car Loan in India: Rates, EMI Calculator and Banks (November 2026) Car loan rates from 30 Indian lenders, verified 9 November 2026: floors from 7.70% p.a., who actually gets them, and a...
- Car Loan EMI Calculator: Work Out Your Monthly EMI and Total Interest Work out your car loan EMI from price, down payment, rate and tenure
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- Car Loan Eligibility in India: Age, Income and Credit Score Rules Car loan eligibility from 30 lenders' pages: minimum salaries from ₹8,000 to ₹50,000 a month, age limits, FOIR caps and...
- 6 Lakh Car Loan EMI: ₹12,080 a Month for 5 Years, ₹9,262 for 7 A 6 lakh car loan costs ₹12,080 a month over 5 years at 7.7% p.a., or ₹9,262 over 7
- 8 Lakh Car Loan EMI: Pay ₹16,106 for 5 Years or ₹12,350 for 7 An 8 lakh car loan EMI is ₹16,106 a month over 5 years at 7.7% p.a., ₹1,66,390 in interest
- UCO Bank Car Loan Interest Rate November 2026: 7.70% for CIBIL 825 UCO Bank car loan interest rate: 7.70% to 10.25% p.a., floating on UCO Float 8.30%, set by CIBIL band
- Lowest Car Loan Interest Rate in November 2026: 30 Lenders Ranked UCO Bank and Bank of Maharashtra publish the lowest car loan rate at 7.70% p.a
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 Rashmi Mandana, 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.