Can You Afford It? Before you put your name on the dotted line, sit back and ponder whether you can handle the EMIs or not. As small as the EMI amount might seem at first glance, a car loan with a high interest rate and long tenure can take quite a toll on your finances. Take stock of your monthly expenses and then see how an EMI would fit in with them. It is also a good idea to pay off other ongoing EMIs first, before you take a car loan.