Car Loan Offers: These 10 banks are offering loans at less than 8% interest this Diwali
Best Car Loan Deals Diwali 2025: Looking to buy a car this Diwali? Banks are currently offering low-interest car loans. Many banks have reduced or even waived processing fees as part of their festive offers, making it even easier for car buyers to purchase a new vehicle.
Diwali Car Loan Rates 2025: Diwali is approaching, and many people are considering buying a new car. Tax cuts and record automobile sales have increased demand.
Consequently, many banks are offering attractive interest rates on car loans, making buying a new car during the festive season easy and affordable.
So, if you too want to bring home a shiny car this Diwali, find out which bank is offering the cheapest and best car loan offers...
Car Loan Rates in October 2025
According to Paisabazaar.com, car loan interest rates range from 7.60% to 14% per annum. For example, for a loan of ₹5 lakh with a 5-year EMI, the monthly EMI would be between ₹10,043 and ₹11,699. This amount may vary depending on the bank and customer profile.
New car loan rates and processing charges
Union Bank of India
Union Bank of India is offering interest rates ranging from 7.80% to 9.70% for car loans in October 2025. For a loan of ₹5 lakh, EMIs range from ₹10,090 to ₹10,550 over a 5-year term.
The Diwali offer includes a complete waiver of processing fees. This offer is especially suitable for customers looking to purchase a new car during the festive season.
Punjab National Bank (PNB)
PNB car loan interest rates range from 7.85% to 9.70%. For a loan of ₹5 lakh, the EMI will range from ₹10,102 to ₹10,550 for a 5-year term. The processing fee is 0.25% (₹1,000–1,500). This Diwali, the bank is offering customers the opportunity to avail of a car loan with easy and affordable costs.
Canara Bank
Canara Bank's interest rates range from 7.70% to 11.70%. The EMI for a ₹5 lakh loan over 5 years will be ₹10,067–₹11,047. The processing fee is 0.25% (₹1,000–₹5,000). These Diwali offers from Canara Bank are very attractive for customers.
Bank of India
Bank of India offers car loan interest rates ranging from 7.85% to 12.15%. The EMI for a ₹5 lakh loan over 5 years will range from ₹10,102–11,160. The processing fee is 0.25% (₹2,500–10,000).
UCO Bank
UCO Bank offers car loan interest rates ranging from 7.60% to 10.25%. The EMI for a ₹5 lakh loan over 5 years will range from ₹10,043–₹10,685. The processing fee is 0.50% (₹5,000).
Bank of Maharashtra
Bank of Maharashtra offers interest rates ranging from 7.70% to 12.00%. EMIs for a loan of ₹5 lakh range from ₹10,067–₹11,122. The processing fee is 0.25% (up to ₹15,000). The processing fee is waived as part of the Diwali offer.
Indian Overseas Bank
Indian Overseas Bank offers car loan interest rates ranging from 7.80% to 12.00%. EMIs for a loan of ₹5 lakh will range from ₹10,090–₹11,122. The processing fee is 0.50% (₹500–₹5,000).
Punjab and Sindh Bank
Interest rates range from 7.75% to 14.25%. EMIs for a loan of ₹5 lakh range from ₹10,078–₹11,699. Processing fees are 0.25% (₹1,000–₹15,000). PSB Apna Vahan Sugam offers a 50% discount on processing fees.
Indian Bank
Indian Bank car loan interest rates range from 7.75% to 9.85%. EMIs for a loan of ₹5 lakh range from ₹10,078–₹10,587. The processing fee is ₹1,000.
Central Bank of India
Interest rates at Central Bank of India range from 7.85% to 9.45%. EMIs for a loan of ₹5 lakh range from ₹10,102–₹10,489. Processing fees range from 0.50% (₹2,000–₹20,000), but the Diwali offer waives the processing fee.
Bank of Baroda
Bank of Baroda offers car loan interest rates ranging from 8.15% to 11.60%. The 5-year EMI for a loan of ₹5 lakh will be ₹10,174–₹11,021. The processing fee is up to ₹2,000. This bank's loan offers are for those looking to purchase a car with a longer term.
State Bank of India (SBI)
SBI car loan interest rates range from 8.80% to 9.90%. The EMI for a loan of ₹5 lakh over 5 years will range from ₹10,331–₹10,599. There is no processing fee for this offer.
IDBI Bank
IDBI Bank offers car loan interest rates ranging from 8.30% to 9.15%. The EMI for a loan of Rs 5 lakh over 5 years will range from ₹10,210–10,416. The processing fee is up to ₹2,500.
ICICI Bank
ICICI Bank offers interest rates starting at 8.50%. EMIs for a loan of ₹5 lakh start at ₹10,258. Processing fees are up to 2%.
HDFC Bank
HDFC Bank offers car loan interest rates starting at 9.20%. EMIs for a loan of ₹5 lakh start at ₹10,428. Processing fees range from 1% (₹3,500–₹9,000).
Karnataka Bank
Karnataka Bank offers interest rates ranging from 8.97% to 11.66%. EMIs for a loan of ₹5 lakh range from ₹10,372–11,037. Processing fees range from 0.60% (₹2,500–11,000).
Federal Bank
Federal Bank offers car loan interest rates of over 10%. EMIs for a loan of Rs 5 lakh start at ₹10,624. Processing fees range from ₹2,000–₹4,500.
IDFC FIRST Bank
Interest rates start at 9.99%. EMIs start at ₹10,621 for a loan of ₹5 lakh. Processing fees are up to ₹10,000.
Note: Some banks are waiving processing fees as part of a Diwali offer. PSB Apna Vahan Sugam offers up to 50% processing fee waiver.
Disclaimer: This article is for informational and educational purposes only. Car loan interest rates, EMIs, and processing fees are subject to change by banks from time to time. Before taking a loan from any bank, please check the complete terms and conditions on the official website or at your branch.