With car prices rising and the aim of buying a car stronger than ever, one common question facing salaried professionals is: How much car loan can you get on a monthly salary of Rs 60,000? Here’s what the numbers and experts say. Banks and non-banking financial companies (NBFCs) typically determine car loan eligibility based on your monthly income, existing financial obligations, and credit score. For a gross monthly salary of Rs 60,000, lenders generally consider that up to 40-50% of your income can be safely allocated toward loan repayments. This means your total EMI outgo should ideally not exceed Rs 24,000 to Rs 30,000 per month. Assuming you have minimal other liabilities, you could be eligible for a car loan amount ranging from Rs 7 lakh to Rs 12 lakh, depending on the repayment tenure (usually 3-7 years), interest rates, and the bank’s internal policies. For instance, at an interest rate of 9.5% over 5 years, a Rs 10 lakh loan would translate to an EMI of around Rs 21,000, which comfortably fits within the eligibility band for a Rs 60,000 salary. Keep in mind that lenders will also consider your credit score, existing EMIs (like those for home or personal loans), and take-home pay after deductions. A higher credit score not only boosts your eligibility but may also fetch you better interest rates. The government aims to have 30 per cent of all vehicle sales be electric by 2030. At the state level in Delhi, Maharashtra, and Tamil Nadu, the governments offer subsidies, tax exemptions and manufacturing incentives, creating a conducive environment for both consumers and businesses.So your dream to buy a car is more affordable with the right financial decision. Do consult a financial advisor before making any purchase.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
How much car loan can you get on a Rs 60,000 salary, on-road price, income, and credit score
