How to Compare Car Loan Offers: KFS, APR, EMI and Fees

Learn how to compare car loans using the RBI KFS, APR, EMI, total repayment and charges, with a worked ₹8 lakh example and a…

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CAR LOAN GUIDE Compare offers beyond the headline rate Use the KFS, APR, EMI, fees and repayment schedule together.
THE RBI RULE Ask for the KFS 1 Oct 2024 New retail and MSME term loans have standard KFS rules from this date.
THE REAL COST APR includes the charges APR It combines interest and lender charges into an annual cost for comparison.
THE RATE CONTEXT Repo rate is not your quote 5.50% RBI’s policy rate after the 7 Oct 2026 decision does not equal every car-loan rate.
THE EXAMPLE A small rate gap grows ₹8,122 On an illustrative ₹8 lakh, 60-month loan, 8.90% costs more interest than 8.55% before fees.
CHECK THE FEES Read every charge line Processing, documentation, insurance, prepayment and late-payment terms can change the total cost.
READ THE FULL GUIDE Get the complete breakdown Numbers, comparisons and what to check next.