Giving relief to the people before the New Year, the Reserve Bank of India has reduced the repo rate by 0.25%. The benefit of lower repo rate is immediate, because it directly reduces the EMI of the car loan. Even before this, RBI had reduced the repo rate in the months of February, April and June in 2025. Now after the new deduction, the EMI of car loan has become lower than before. Let us know in detail.

What is the new car loan interest rate of SBI?

• According to the SBI website, till October 13, 2025, the car loan interest rate was 8.75%, but after the cut of 25 basis points by RBI, this rate has come down to 8.50%. Even this small reduction in interest rate has a noticeable impact on EMI and results in good savings in the long run.

How much is the EMI reduced on a car loan of Rs 10 lakh?

• If a customer takes a car loan of Rs 10 lakh for 5 years, then earlier he had to pay EMI of Rs 20,673 every month at 8.75% interest. Now at the new rate of 8.50%, EMI has reduced to Rs 20,517, which saves about Rs 120 every month.

How much less will the EMI be on a loan of Rs 15 lakh?

• Earlier the EMI on a car loan of Rs 15 lakh was Rs 30,956. After the implementation of the new 8.50% rate, this EMI has reduced to Rs 30,775. In this way the customer gets a saving of Rs 181 every month.

How much relief will be available on car loan of Rs 20 lakh?

• According to the earlier 8.75% interest rate on a loan of Rs 20 lakh, the EMI was Rs 41,274. Now this EMI has reduced to Rs 41,033. That means there will be a direct saving of Rs 241 every month, which becomes a good amount in a year.

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In India, from small to big, every family Everyone dreams of owning a car, but due to the high cost, this dream is not fulfilled for everyone. The price of even a cheap car starts from lakhs of rupees. Now in such a situation, you have one option to buy this car on loan.

If you take this car on loan then you also have the problem of EMI. Should be given on time. now yours task It also remains to buy a car that Budget Fit in. The people who work in India salary Too fix it occurs. This salary In this, they have to meet all the household expenses including the small needs of the children.

If your annual income is Rs 5 lakh (41,667 per month) and you are planning to buy a car, then here we are going to tell you which car you can buy on this annual salary?

Which car will be right to buy?

Your salary according to annual income about 40 Will be around thousand rupees. In such a situation, if you are in this salary to buy a good car Plan If you are making then here we are going to tell you that your Budget Which car is right according to, Yours salary 40 thousand rupees per month, then you should choose those cars which will give you EMI i.e. installment More No to give lay down,

Example Of manner But You 5 Lakh Rs. From Start to be the one car buy But Idea Tax Can Are, If we look at the Indian market, this Price bracket i you Maruti S-pressoMaruti Alto K10, Renault Kwid Such vehicles will be available. in cars Of For To you More emi And down not paying will have to,

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In today’s run -of -the -mill life, the car has become not just a luxury, but a need. Whether it is going to go to office, leave school or walk with family, everyone’s mind definitely comes to buy a car one day.

But sometimes this dream is overwhelmed due to wrong financial planning or haste. In such a situation, there is a very effective strategy, 20/4/10 rules, which can help in buying a car without damaging your financial situation.

What is 20/4/10 Rules?

20/4/10 Rules are a simple but effective car financeing guideline. This rule is based on three major columns- down payment, loan period and monthly expenses. Through this rule, you can decide which car will fit in your budget and lifestyle.

20 percent of car price

Whenever you go to buy a car, give at least 20 percent of its price as a down payment. This will reduce your total loan amount and you will be able to save a lot on interest. Also, the burden of repaying the loan will also lighten it.

Loan duration, maximum 4 years

According to this rule, the duration of the car loan should not be more than four years. This will end your debt quickly and you will not pay interest for a long period. Credit score is also better by repaying the loan in a short time.

Maximum 10 percent of the total income

Apart from car EMI, there are insurance, maintenance and other expenses. Together, it should not be more than 10 percent of your monthly salary. With this, you will be able to save enough funds for other important expenses and will not come under financial pressure.

Why is this rule important?

According to a advice by Tata AIG Insurance, the car you are buying should not exceed 50 percent of your annual income. For example, if your annual income is Rs 10 lakh, then you should not buy a car worth more than 5 lakh rupees. The 20/4/10 rule expands this thinking and provides you with a strong financial guideline.

Car and relaxed too

By adopting this rule, not only you take a smart financial decision, but you also get mental peace. You can buy a car of your choice without being overburden. You are able to repay the loan on time, and you can easily manage other expenses coming with the car.

Often people take a car without assessing EMI and then they have to compromise for the rest of the expenses. The 20/4/10 rule saves from this mistake and makes your shopping systematic and durable.

If you are also going to buy a car for the first time or thinking of taking a new car, then this rule can be a reliable guide for you. 20 percent down payment, 4 -year loan, and 10 percent monthly spending limit, by adopting these three things, you can fit your car in your budget.

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Mahindra xuv700 finance plan: There is a lot of demand for Mahindra cars in the Indian market. The company’s Mahindra XUV700 is also one of them. The features of this SUV are so strong that this vehicle gives a tough competition to Tata Harrier and Scorpio N. If you are planning to buy an SUV of Mahinda, then it can be best for you. Here we are going to tell you how you can make this car finance by not making full payment.

The ex-showroom price of Mahindra XUV700 starts from Rs 14 lakh 49 thousand and goes up to 25 lakh 14 thousand rupees. If you want to buy the Mahindra XUV700 with a 7-seater configuration in the petrol variant, then the cheapest model of this vehicle is MX. The on-road price of MX 7STR petrol variants is around Rs 17 lakh.

How much salary you can buy Mahindra XUV700?

You can also buy the MX 7STR variant of Mahindra XUV700 on a car loan by not making full payment at once. You can get a loan of Rs 15.23 lakh to buy this 7-seater car. The loan amount depends on your credit score. If the credit score is better, then only you can get a loan of more amount.

To buy Mahindra XUV700 car loan, a down payment of Rs 1.69 lakh will have to be made. If you buy this Mahindra car on a four -year loan and the bank imposes 9 percent interest on this loan, then for 48 months you will have to pay about 38 thousand rupees every month as EMI. In such a situation, even if your salary is close to 50 thousand rupees, you can think of buying this SUV, the rest depends entirely on you whether you want to buy this car on such a salary or not.

How many EMIs will have to be filled every month?

If you take a loan for five years to buy Mahindra XUV700, then an EMI of 32 thousand rupees will have to be filled every month with 9 percent interest. To buy Mahindra XUV700, a installment of Rs 27,500 will have to be deposited every month for taking a loan for six years. On purchasing this Mahindra vehicle on a seven -year loan, an installment of Rs 24,500 will have to be deposited in the bank every month.

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RBI Repo Rate Cut: Today, crores of consumers can be given relief from RBI. Today is the last day of the meeting of the Monetary Policy Committee (MPC) of Reserve Bank of India from April 7. After the end of this meeting, the repo rate can be announced from 0.25 per cent to 0.50 per cent from RBI Governor Sanjay Malhotra. If this announcement is made by RBI, then car loans, home loans and personal loans will become cheap.

However, the hope of any change in the rate of deposits in the bank is very low. That is, the benefits can be given to those taking home loans from the bank, but the depositors are not going to benefit from it.

According to the TOE, about this, ICRs’ Senior Vice President Anil Gupta says, there is a stir in the market at this time, in such a situation, what kind of practical change is coming in the retail investor, it will be known in a long time, not immediately. But at this time there is a lot of difference between fixed deposit rate and deposit of savings account.

RBI’s inflation control target is between 2% to 6% and currently India remains in this band. This means that now the focus of the ABI will be on boosting the growth. This will be the news of small business, startups and the general public.

Relief expected

He said, we are not immediately expecting the deduction in fixed deposits due to the pressure of liquidity coverage ratio on the bank. Actually, the interest rate at which RBI gives money to other banks is called repo rate. In such a situation, when the interest rate from the RBI is cheaper, then the banks also give the benefit to many customers by reducing the loan interest rate.

In view of the market situation, decisions have been taken by RBI from time to time. That is, inflation depends on the flow of liquidity in more or more markets. In such a situation, steps are taken by the RBI to reduce inflation, but when things are normal in the market or are running at a slow pace, then it is announced to reduce the repo rate to increase liquidity.

Meaning of repo rate deduction

In February last, the repo rate of 0.25 percent was announced by the RBI, after which the repo rate was reduced from 6.50% to 6.25%. The repo rate was increased to 6.50% in June 2023 by RBI. That is, this change was made in 5 years.

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