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₹10 Lakh Car: Down Payment & EMI Guide | Raaj Wealth Sol
Car Loan Guide

₹10 Lakh Car:
What Will It Really Cost?

Down payment, EMI, loan tenure and the costs people often forget when planning their car purchase.

₹10,00,000

The showroom price is only the beginning.

How much should you actually finance?

A ₹10 lakh car doesn't necessarily mean taking a ₹10 lakh car loan.

Your down payment, loan tenure and interest rate can significantly change the amount you pay every month and the total amount paid over the life of the loan.

For example, someone may choose to make a ₹2 lakh down payment and finance the remaining ₹8 lakh. Another buyer may put down ₹3 lakh and borrow ₹7 lakh.

The right down payment isn't necessarily the biggest one. It is the amount that reduces your borrowing while leaving you financially comfortable.
Illustrative Examples

Three ways to finance a ₹10 lakh car.

The examples below use an illustrative 9% annual interest rate. Actual rates and EMIs vary by lender, borrower profile and loan terms.

Scenario 01

₹2 Lakh Down Payment

₹8 Lakh
Illustrative loan amount

Lower upfront contribution means a larger amount is financed.

Scenario 02

₹3 Lakh Down Payment

₹7 Lakh
Illustrative loan amount

A higher down payment reduces the amount you borrow.

Scenario 03

₹4 Lakh Down Payment

₹6 Lakh
Illustrative loan amount

More money upfront can mean a smaller loan and potentially lower interest costs.

Your car budget has more than one number.

01

Down Payment

Money paid upfront toward the purchase. It reduces the amount you need to borrow.

02

Loan Amount

The amount financed by the lender after accounting for your down payment and applicable terms.

03

Interest

The cost of borrowing. A lower rate or shorter tenure can change your overall repayment cost.

04

Insurance

Motor insurance is another recurring cost of owning and protecting your vehicle.

05

Fuel

Your monthly running cost depends on how much you drive and the vehicle's efficiency.

06

Maintenance

Servicing, tyres, repairs and other maintenance costs should also be part of your ownership budget.

What could the EMI look like?

Illustration for an ₹8 lakh loan at 9% annual interest. Actual EMI will depend on the lender, rate and loan terms.

Tenure Approx. EMI Approx. Total Interest
3 Years ₹25,440 / month ₹1.16 Lakh
5 Years ₹16,607 / month ₹1.96 Lakh
7 Years ₹12,867 / month ₹2.81 Lakh

Five things worth checking.

01

How much can I comfortably put down without exhausting my savings?

02

Will the EMI leave enough room for my other monthly commitments?

03

How much will I pay in total interest over the loan tenure?

04

Have I included insurance, fuel and maintenance in my budget?

05

Will this purchase affect my investments and other financial goals?

₹10 lakh car loan questions.

There is no single ideal down payment for everyone. A larger down payment reduces the loan amount, but you should also retain sufficient savings for emergencies and other goals.
At an illustrative 9% annual interest rate, an ₹8 lakh loan would have an approximate EMI of ₹25,440 for 3 years, ₹16,607 for 5 years and ₹12,867 for 7 years. Actual rates and EMIs vary by lender and borrower profile.
A longer tenure can reduce the monthly EMI, but it can also increase the total interest paid. Consider both monthly affordability and total repayment cost.
Consider insurance, fuel, maintenance, servicing, tyres, repairs and other ownership-related expenses in addition to the loan EMI.

The best car loan is one that fits your life.

Don't choose a car only because the EMI looks affordable. Look at the complete financial picture before you make the decision.

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