From cash-backs to discounts, zero foreclosure charges, sharply discounted processing fees and lower interest rates on offer for bank customers
| Photo Credit:
K_Ananthan
From cash-backs to discounts, zero foreclosure charges, sharply discounted processing fees and lower interest rates, banks have rolled out a host of offers to garner maximum business from Diwali 2025.
Country’s largest private lender HDFC Bank is offering over 10,000 offers across cards, loans, PayZapp and EASYEMI. The lender is offering personal loan at 9.99 per cent rate of interest, with up to 72 months tenure at zero foreclosure free (provided the loan amount is above ₹15 lakh and CIBIL score of customer is over 730). It is offering home loans with rates starting 7.40 per cent till October end, and car loans at 8.55 per cent with zero foreclosure charges.
It is offering such incentives across business, two-wheeler, gold loans and loan on credit cards, among other variants. Bank will leverage its network of over 9,499 branches, and 21,251 ATMs, and more than six lakh merchant and dealer touchpoints for this festive campaign. It plans to do over 37,000 on-ground activations at retail centres, residential complexes and offices to bring the offers closer to customers.
Banks typically charge 8.75-9.65 per cent interest rate on home loans depending on customer’s CIBIL score, while vehicle loans have interest rate of over 10 per cent and personal loans with interest rate upwards of 12-13 per cent. Processing fees differs across banks for different loan products.
With the latest GST rate cuts, fall in income tax rates and festival season demand, bankers expect retail credit growth to rise over 20 per cent in H2FY26 from 14-15 per cent growth seen in H1.
“The triad of the tax benefits, GST and interest rate cuts seems to be working on ground level as we see economic activity visibly improving across customer and product segment. In this background, we have an opportunity to accelerate loan growth, which is what we have started to do from this quarter. We believe that this will sustain and continue and we have to wait and watch,” said Sashidhar Jagdishan, MD & CEO, HDFC Bank.
ICICI Bank, meanwhile, is offering a special processing fee of ₹5,000 for home loans and processing fee of ₹999 for auto loans. It is offering up ₹6,000 instant cashback on iPhone 17 purchase and up to ₹50,000 in cashback and discounts across various electronics brands like LG, Haier, Panasonic, Bluestar and JBL, among others. Customers can also avail of attractive discounts on a range of products at Croma and Reliance Digital.
Says Rakesh Jha, ED, ICICI Bank, “…This year, we are delighted to offer a wide array of deals across top brands, with thoughtfully designed offers to meet our customers’ evolving needs. Our customers can avail of these offers through credit/debit cards, internet banking, cardless EMI and consumer finance. They can also opt for no-cost EMI using their credit/debit cards.”
Special home loan rates
Bank of Baroda (BoB) is offering special interest rate starting at 7.45 per cent for home loans, with nil processing fee. It is giving interest rate concession for women borrowers, Gen Zs & Millennials aged below 40 years. The home loan interest will be calculated on a daily reducing balance basis.
For those eyeing a new set of wheels, car loan interest rates have been reduced, along with up to 90 per cent financing of the on-road price of the vehicle and extended repayment tenures – going up to eight years for electric vehicles. In fact, BoB is giving EV buyers a further nudge with a 50 per cent concession in processing charges for electric vehicles.
IndusInd Bank is offering up to 50 per cent off on processing fee across loan products including home, vehicle, personal loans and loans against property. It is offering personal loan with interest rates starting at 10.49 per cent for loan amount up to ₹50 lakhs, with loan tenure up to 84 months. Home loan deals for long-tenure loans up to ₹10 crore have been announced by the bank, along with a flat processing fee of ₹10,000, extended loan tenures and balance transfer options.
Published on October 19, 2025
