How Much Interest Would You Pay on a ₹7 Lakh Car Loan at 8% Interest?

Buying a car is one of the most important milestones in their life, but for many, it often involves taking out a loan. But it is important to understand how much you’ll actually end up paying over time. One of the biggest components of your repayment is the interest you pay on your loan.

In this read, we break down how much you will be paying if you took a ₹7,00,000 car loan at 8% interest per annum for 5 years, including your EMI (Equated Monthly Installment), total interest, and overall amount payable.

Car Loan Details Overview

Here’s a quick breakdown of the loan structure and repayment summary:

This means you’ll be paying ₹14,193 every month for 60 months. Over 5 years, your total payment with interest will be ~₹8.51 lakhs, out of which ~₹1.51 lakhs is just interest. If you are taking a loan with a different amount, you can calculate the interest cost through the Angel One EMI calculator.

What Does This Mean for You?

When you opt for a loan of ₹7 lakhs at 8% interest over 5 years:

• You commit to monthly payments of ₹14,193.
• You’ll pay ₹1,51,609 in interest over the life of the loan.
• The total repayment becomes ₹8,51,609, that's almost 22% more than the loan amount.

This highlights why it's important to compare loan offers, interest rates, and choose a loan tenure that aligns with your financial situation.

Also Read: What’s Better for Paying Off A ₹80 Lakh Home Loan: Shorter Tenure or Higher EMI?

Conclusion

While taking a car loan is a smart way to manage your budget and get your dream car, it’s important to look beyond the sticker price. Interest payments significantly impact the overall cost of ownership.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.