Best Car Loan Deals Diwali 2025: Want to buy a car on Diwali? At present banks are giving car loans at low interest. Many banks have also reduced or waived the processing fees in the festive offer, making it easier for car buyers to get a new vehicle.
Diwali Car Loan Rates 2025: Diwali festival is near and many people are thinking of buying a new car. Tax cuts and record automobile sales have increased demand for cars. In such a situation, many banks are offering attractive interest rates on car loans, making it easy and affordable to buy a new car during festivals. So, if you also want to bring a shining car to your home this Diwali, then know here which bank is giving the cheapest and best offer on car loan…
Car Loan Rates in October 2025
According to Paisabazaar.com, car loan interest rates range from 7.60% to 14% per annum. For example, if EMI is to be paid in 5 years on a loan of Rs 5 lakh, then the EMI per month will be between ₹ 10,043 to ₹ 11,699. This amount may change 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. On a loan of Rs 5 lakh, the EMI ranges from ₹10,090 to ₹10,550 over a tenure of 5 years. Processing fees are completely waived off under the Diwali offer. This offer is special for those customers who want to buy a new car in the festive season.
Punjab National Bank (PNB)
Car loan interest rates in PNB range from 7.85% to 9.70%. On a loan of Rs 5 lakh, the EMI will range from ₹10,102 to ₹10,550 for a tenure of 5 years. The processing fee is 0.25% (₹1,000–1,500). On the occasion of Diwali, this bank is giving customers the opportunity to get easy loan and car at low cost.
Canara Bank
The interest rates in Canara Bank range from 7.70% to 11.70%. EMI for 5 years on a loan of Rs 5 lakh will range from ₹10,067–11,047. The processing fee is 0.25% (₹1,000–5,000). These offers of Canara Bank are very attractive for the customers during Diwali.
Bank of India
Bank of India offers interest rates on car loans ranging from 7.85% to 12.15%. EMI for 5 years on a loan of Rs 5 lakh will range from ₹10,102–11,160. Processing fee is 0.25% (₹2,500–10,000).
UCO Bank
UCO Bank is offering interest rates ranging from 7.60% to 10.25% on car loans. EMI for 5 years on a loan of Rs 5 lakh will range from ₹10,043–10,685. The processing fee is 0.50% (₹5,000).
Bank of Maharashtra
The interest rates in Bank of Maharashtra range from 7.70% to 12.00%. EMI for a loan of Rs 5 lakh will range from ₹10,067–11,122. Processing fee is 0.25% (up to ₹15,000). Processing fee is waived in Diwali offer.
Indian Overseas Bank
Indian Overseas Bank is offering interest rates ranging from 7.80% to 12.00% on car loans. EMI for a loan of Rs 5 lakh will range from ₹10,090–11,122. Processing fee is 0.50% (₹500–5,000).
Punjab and Sindh Bank
The interest rates range from 7.75% to 14.25%. EMI for a loan of Rs 5 lakh will range from ₹10,078–11,699. Processing fee 0.25% (₹1,000–15,000). There is 50% discount on processing fees in ‘PSB Apna Vahan Sugam’.
Indian Bank
Car loan interest rates in Indian Bank range from 7.75% to 9.85%. EMI on loan of Rs 5 lakh ₹10,078–10,587. The processing fee is ₹1,000.
Central Bank of India
The interest rate in Central Bank of India ranges from 7.85% to 9.45%. EMI for a loan of Rs 5 lakh ranges from ₹10,102–10,489. The processing fee ranges from 0.50% (₹2,000–20,000), but the processing fee is waived off in the Diwali offer.
Bank of Baroda
Bank of Baroda offers interest rates ranging from 8.15% to 11.60% on car loans. The 5 year EMI for a loan of Rs 5 lakh will be ₹10,174–11,021. Processing fees are up to ₹2,000. The loan offer of this bank is for those who are thinking of buying a car in a longer period.
State Bank of India (SBI)
Car loan interest rates in SBI range from 8.80% to 9.90%. EMI for 5 years on a loan of Rs 5 lakh will range from ₹10,331–10,599. Processing fee is zero in this offer.
IDBI Bank
IDBI Bank is offering interest rates ranging from 8.30% to 9.15% on car loans. EMI for 5 years on a loan of Rs 5 lakh will range from ₹10,210–10,416. Processing fees are up to ₹2,500.
ICICI Bank
ICICI Bank interest rate is above 8.50%. EMI for loan of Rs 5 lakh will start from ₹10,258. Processing fee is up to 2%.
HDFC Bank
HDFC Bank is offering interest rates above 9.20% on car loans. EMI for loan of Rs 5 lakh will start from ₹10,428. Processing fees range from 1% (₹3,500–9,000).
Karnataka Bank
The interest rates in Karnataka Bank range from 8.97% to 11.66%. EMI for a loan of Rs 5 lakh will range from ₹10,372–11,037. Processing fees range from 0.60% (₹2,500–11,000).
Federal Bank
Federal Bank is offering interest rates above 10% on car loans. EMI for loan of Rs 5 lakh will start from ₹10,624. The processing fee is ₹2,000–4,500.
IDFC FIRST Bank
The interest rate is more than 9.99%. EMI starts from ₹10,621 for a loan of Rs 5 lakh. The processing fee is up to Rs 10,000.
Note: Some banks are waiving processing fees under Diwali offer. Up to 50% rebate in processing fees is being given in ‘PSB Apna Vahan Sugam’.
Disclaimer: This article has been prepared for information 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, check the complete information and conditions on the official website or branch.
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