The EMI relief shrinks, the interest does not
Look at what each step in tenure does. Going from 3 to 4 years cuts the EMI by ₹6,910. Going from 4 to 5 years cuts it by only ₹4,121. Stretching from 5 to 7 years lowers it by ₹4,658 in total, about ₹2,329 for each extra year.
The interest moves the other way. Every added year costs roughly ₹52,700 to ₹56,400 more in interest. So each extra year gives you a smaller monthly break, while the price of that break stays high.
Frequently asked questions
What is the EMI for a ₹10 lakh car loan for 7 years?
At 9.5%, the 7-year EMI is ₹16,344. Total interest is ₹3,72,894, so you repay ₹13,72,894 in all. Interest works out to 37.29% of the loan.
How much higher is the EMI for 3 years instead of 5?
The 3-year EMI is ₹32,033 against ₹21,002 for 5 years, a gap of ₹11,031 a month. In return, the shorter loan saves about ₹1.07 lakh in interest.
What is the total interest on a ₹10 lakh car loan for 4 years?
At 9.5% for 4 years, interest is ₹2,05,911 and the EMI is ₹25,123. You repay ₹12,05,911 in total, so interest adds about a fifth (20.59%) to the loan.
Does the interest double if I borrow ₹10 lakh instead of ₹5 lakh?
Yes, at the same rate and tenure. A ₹5 lakh loan for 5 years at 9.5% has an EMI of ₹10,501 and interest of ₹1,30,056. At ₹10 lakh, both roughly double to ₹21,002 and ₹2,60,112.
