Diwali 2026: Planning to buy a car this Diwali? These banks are offering affordable loans—check out the interest rates and EMIs.

Buying a car is a dream for many in middle-class families. Furthermore, purchasing a car—or any new item—during the Diwali season is considered auspicious. If you are planning to buy a new car this Diwali, special car loan offers from banks could prove highly beneficial. During the festive season, many banks are offering loans at lower interest rates, along with waivers on processing fees. This allows customers to secure a car loan at a lower cost, reducing the initial financial burden. Let’s look at the details.

Banks Offering Attractive Deals

For Diwali 2026, several banks—including Indian Bank, State Bank of India (SBI), Bank of India, and HDFC Bank—are providing special car loan offers to customers. According to data from BankBazaar.com as of October 23, some banks are offering car loans with interest rates starting from 7.75% per annum. Additionally, customers may benefit from waivers on loan processing fees and the absence of foreclosure charges if the loan is repaid early. Please note that all these benefits are subject to the specific terms and conditions of the respective banks.

Banks Offering Great Deals

Bank of Baroda: Bank of Baroda is offering excellent deals on car loans for the Diwali season. Their interest rates range from 7.85% to 11.55% per annum. For a loan of ₹5 lakh taken over a five-year tenure, the monthly EMI would range between ₹10,102 and ₹11,009. The processing fee is up to ₹2,000.

Bank of India: At Bank of India, interest rates range from 7.85% to 12.55%. For a loan of ₹5 lakh with a five-year tenure, the EMI will fall between ₹10,102 and ₹11,262. The bank charges a processing fee of 0.25% on this loan, with a minimum of ₹2,500 and a maximum of ₹10,000.

Bank of Maharashtra: The interest rate for car loans at the Bank of Maharashtra ranges from 7.70% to 12%. For a five-year loan of ₹5 lakh, the monthly EMI would range between ₹10,067 and ₹11,122. Notably, the Bank of Maharashtra does not charge any processing fee on car loans.

Canara Bank: The annual interest rate for car loans at Canara Bank ranges from 7.70% to 11.70%. For a five-year loan of ₹5 lakh, the monthly EMI would range between ₹10,067 and ₹11,047. The bank charges a processing fee of 0.25% of the loan amount, with a minimum of ₹1,000 and a maximum of ₹5,000.

Punjab & Sind Bank: The annual interest rate for car loans at Punjab & Sind Bank ranges from 7.55% to 14.30%. For a five-year loan of ₹5 lakh, the monthly EMI would range between ₹10,031 and ₹11,712. The bank charges a processing fee of 0.25% of the loan amount, which can range from a minimum of ₹1,000 to a maximum of ₹15,000.

Punjab National Bank (PNB): The interest rate at Punjab National Bank (PNB) ranges from 7.85% to 10.95%. For a five-year loan of ₹5 lakh, the monthly EMI would be between ₹10,102 and ₹10,859. The processing fee is up to 0.25% of the loan amount, which can range from ₹1,000 to ₹1,500.

State Bank of India (SBI): At the State Bank of India, the interest rate for car loans ranges from 8.45% to 9.50%. For a loan of ₹5 lakh taken for a tenure of five years, the monthly EMI would be between ₹10,246 and ₹10,501, while the processing fee ranges from ₹500 to ₹2,000.

Central Bank of India: The interest rate at the Central Bank of India ranges from 7.75% to 9.55%. For a loan of ₹5 lakh over a five-year period, the monthly EMI would be between ₹10,078 and ₹10,513. The bank has completely waived the processing fee until December 31, 2026.

HDFC and ICICI: At HDFC Bank, the annual interest rate for car loans starts at 8.25%, with monthly EMIs beginning at ₹10,198. The bank may charge a processing fee of up to 0.5% of the loan amount, ranging between ₹3,500 and ₹8,000. Meanwhile, at ICICI Bank, the interest rate starts at 8.40%, with monthly EMIs beginning at ₹10,234. The processing fee here can go up to ₹8,500.

Indian Bank and Indian Overseas Bank: At Indian Bank, the annual interest rate for car loans starts at 7.75%, with monthly EMIs ranging from ₹10,031 to ₹11,034. Notably, the bank does not charge any processing fee. At Indian Overseas Bank, the interest rate ranges from 7.80% to 12%. Here, the monthly EMI will range between ₹10,090 and ₹11,122, and there will be no processing fee for the loan.

UCO Bank: The annual interest rate for car loans at UCO Bank ranges from 7.70% to 10.25%. For a loan of ₹5 lakh taken from this bank for a tenure of five years, the monthly EMI will be between ₹10,067 and ₹10,685. The processing fee is 0.5% of the loan amount.

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