Diwali is a time of celebration, and for many, it’s also an auspicious occasion to make significant purchases like vehicles. If you’ve received a Diwali bonus this year, you might be considering using it to buy a new car. Many people use their festive bonus to purchase household appliances, plan vacations, or invest in savings schemes. However, buying a car can be a smart choice, especially with attractive deals available during this season.
Car manufacturers like Tata Motors, Hyundai, and Mahindra are offering festive discounts to boost sales, and banks are stepping in with attractive car loan offers. Some banks are even providing car loans with zero processing fees, making it easier for you to turn your Diwali bonus into a down payment on a new car.
Here’s a detailed look at how you can use your bonus to buy a car and which banks are offering the best deals on car loans right now.
Why Diwali is the Perfect Time to Buy a Car
Diwali holds special significance for many, and buying a new car during this time is considered auspicious. It’s also the time when car dealerships witness a surge in customers, and manufacturers offer lucrative discounts and special offers to encourage purchases.
But what if your bonus isn’t enough to cover the full cost of the car? That’s where car loans come in. During Diwali, banks often lower interest rates and waive off processing fees to attract customers. This year, several banks are offering car loans with no processing fees, making it an ideal time to finance your car purchase.
Top Banks Offering Car Loans Without Processing Fees
If you’re planning to finance your new car, here are some banks that are offering car loans with zero processing fees and competitive interest rates:
- Union Bank of India
- Interest Rate: 8.70% – 10.45% per annum
- EMI (for a loan of ₹5 lakh over 5 years): ₹10,307 – ₹10,735
- Processing Fee: Nil
- UCO Bank
- Interest Rate: 8.45% – 10.55% per annum
- EMI: ₹10,246 – ₹10,759
- Processing Fee: Nil
- Canara Bank
- Interest Rate: 8.70% – 12.70% per annum
- EMI: ₹10,307 – ₹11,300
- Processing Fee: Nil
- State Bank of India
- Interest Rate: 9.05% – 10.10% per annum
- EMI: ₹10,391 – ₹10,648
- Processing Fee: Nil
- Bank of Maharashtra
- Interest Rate: 8.70% – 13.00% per annum
- EMI: ₹10,307 – ₹11,377
- Processing Fee: Nil
These banks offer zero processing fees, saving you extra money on your loan. This can make a significant difference, especially if you are financing a large part of the car’s cost.
Other Banks Offering Low Processing Fees
If you don’t mind paying a small processing fee, here are other banks with competitive loan terms:
- Punjab National Bank: 8.75% – 10.60% interest rate, 0.25% processing fee (₹1,000 – ₹1,500)
- Bank of Baroda: 8.95% – 12.70% interest rate, processing fee up to ₹750
- ICICI Bank: 9.10% onwards interest rate, processing fee up to 2%
- HDFC Bank: 9.20% onwards interest rate, processing fee between ₹3,500 – ₹9,000
These banks offer great interest rates but with minimal processing charges, which can still make financing your car quite affordable.
How to Use Your Diwali Bonus for Car Purchase
Using your Diwali bonus to buy a car can be a smart financial move. Here’s how you can plan your purchase:
- Use Your Bonus as a Down Payment: Most car loans require a down payment, usually around 10-20% of the car’s total value. You can use your Diwali bonus for this, reducing the loan amount you’ll need to borrow.
- Apply for a Car Loan: Once you’ve made your down payment, you can apply for a car loan to cover the remaining amount. Choose a bank offering zero processing fees and compare interest rates to find the best deal.
- Repay in Easy EMIs: Car loans typically offer flexible repayment terms, allowing you to choose a tenure that suits your budget. Many banks offer EMIs that are affordable and easy to manage.
Festive Car Deals and Bank Loans Make a Perfect Combo
With festive offers from car manufacturers and zero processing fee loans from banks, this Diwali could be the perfect time to bring home a new car. Whether you’re looking at a budget-friendly hatchback or a luxury SUV, you can make your dream car a reality by combining your Diwali bonus with a well-chosen car loan.
Make sure to check with your bank for the latest offers and use this festive season to your advantage!
