Thinking of Buying a ₹15 Lakh SUV? Check Your EMI First

A brand-new SUV worth ₹15 lakh can be an exciting purchase, whether it’s for family road trips, city commutes, or simply upgrading your lifestyle. But before you drive it home, it’s essential to understand the financial commitment you’re signing up for. It’s wise to calculate your EMI (Equated Monthly Instalment) to ensure it fits comfortably within your monthly budget.

Scenario 1: 5-Year Tenure

If you take a ₹15 lakh car loan for 5 years at an interest rate of 9% per annum, your EMI will be around ₹31,138 per month.

Over the loan’s tenure, you’ll repay a total of approximately ₹18.68 lakh, which includes ₹3.68 lakh in interest.

This option comes with a higher monthly EMI but significantly reduces the total interest you pay. It’s suitable for those with a stable income and enough room in their budget to handle bigger monthly outflows.

Scenario 2: 10-Year Tenure

For the same ₹15 lakh loan at 9% interest but over 10 years, your EMI drops to roughly ₹19,001 per month. Over time, however, you’ll pay back about ₹22.80 lakh, meaning ₹7.80 lakh goes toward interest.

While the lower EMI eases the pressure on your monthly finances, you end up paying more than double the interest compared to the 5-year plan. This longer tenure might be suitable if you want to keep monthly commitments light, but it comes at a higher overall cost.

Why EMI Calculation Matters?

An EMI is the fixed monthly payment you make to repay your car loan, including both principal and interest. Even if you can make the down payment, a poorly planned EMI can strain your finances for years. By checking your EMI beforehand, you can:

• Avoid exceeding your budget
• Choose a comfortable loan tenure
• Compare interest rates for better deals

Also Read: What Should Be Your EMI If You Earn ₹50,000 Per Month?

Conclusion

Choosing between a 5-year and a 10-year loan is about balancing monthly affordability with long-term cost. A shorter tenure means paying more every month but saving substantially on interest, while a longer tenure offers breathing space in monthly cash flow but increases your total outgo.

Before booking that ₹15 lakh SUV, use an EMI Calculator and run the numbers carefully to ensure your dream ride doesn’t put unnecessary strain on your finances.

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.