From cashbacks to discounts, zero foreclosure costs, sharply reduced processing fees and lower interest rates for bank customers | Photo credit: K_Ananthan
From cashbacks to discounts, zero foreclosure fees, sharply reduced processing fees and lower interest rates, banks have rolled out a host of offers to generate maximum revenue from Diwali 2025.
The country’s largest private lender, HDFC Bank, offers more than 10,000 offers across cards, loans, PayZapp and EASYEMI. The lender is offering a personal loan at an interest rate of 9.99 percent, with a tenure of up to 72 months without foreclosure (provided the loan amount is more than ₹15 lakh and the customer’s CIBIL score is more than 730). It offers home loans with rates starting at 7.40 percent through the end of October, and car loans at 8.55 percent without foreclosure costs.
It offers such incentives for businesses, two-wheelers, gold loans and credit card loans, among others. The Bank will leverage its network of over 9,499 branches, 21,251 ATMs and over six lakh merchant and dealer touch points for this festive campaign. It plans to carry out more than 37,000 on-site activations in shopping malls, residential complexes and offices to bring its offering closer to customers.
Banks typically charge an interest rate of 8.75 to 9.65 percent on home loans, depending on the customer’s CIBIL score, while car loans have an interest rate of more than 10 percent and personal loans have an interest rate of more than 12 to 13 percent. Processing fees vary by bank for different loan products.
With the latest VAT cuts, decline in income tax rates and demand during the festival season, bankers expect retail lending growth to rise by over 20 percent in the second half of the year26, compared to the 14 to 15 percent growth in the first half of the year.
“The triad of tax breaks, VAT cuts and interest rate cuts seems to be working at the base level as we see economic activity visibly improving across customer and product segments. Against this backdrop, we have an opportunity to accelerate credit growth and that is what we have started doing from this quarter onwards. We believe this will continue and continue and we have to wait and see,” said Sashidhar Jagdishan, MD & CEO of HDFC Bank.
ICICI Bank, meanwhile, offers special processing charges of ₹5,000 for home loans and processing charges of ₹999 for car loans. It offers up to ₹6,000 instant cashback on the purchase of an iPhone 17 and up to ₹50,000 cashback and discounts across various electronics brands such as LG, Haier, Panasonic, Bluestar and JBL, among others. Customers can also benefit from attractive discounts on a range of products at Croma and Reliance Digital.
Rakesh Jha, ED, ICICI Bank said, “…This year, we are pleased to offer a wide range of offers from top brands, with carefully designed offers to meet the evolving needs of our customers. Our customers can take advantage of these offers through Credit/Debit Cards, Net Banking, Cardless EMI and Consumer Finance. They can also opt for no-cost EMI using their credit/debit cards.”
Special rates for home loans
Bank of Baroda (BoB) is offering a special interest rate starting from 7.45 percent on home loans, without processing charges. It gives interest concessions to female borrowers, Gen Zers and millennials under 40. The interest on the home loan is calculated on the basis of a daily decreasing balance.
For those looking for a new set of wheels, interest rates on car loans have been reduced, along with financing of up to 90 percent of the on-road price of the vehicle and extended repayment terms – rising to eight years for electric vehicles. BoB is even giving EV buyers a boost with a 50 percent concession in processing costs for electric vehicles.
IndusInd Bank offers up to 50 percent discount on processing fees on loan products including home, auto, personal loans and loans against real estate. It offers personal loans with interest rates starting from 10.49 percent for a loan amount up to ₹50 lakhs, with a tenure of up to 84 months. The bank has announced home loans for long-term loans up to ₹10 crore, along with a fixed processing fee of ₹10,000, extended loan tenors and balance transfer options.
Published on October 19, 2025
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