The buzz of Dhanteras and Diwali is already visible in the markets. If you are planning to buy a car this festive season, this information will be very useful for you. During this festive period, several banks are offering attractive car loan deals. This list includes banks like Indian Bank, State Bank of India (SBI), and Kotak Mahindra. Let’s find out where you can secure an affordable car loan.

Which banks are offering what?
According to the latest data, Indian Bank is offering loans starting at an interest rate of 7.75%, which is the lowest among the banks listed. Meanwhile, some banks, such as Bandhan Bank, are offering car loans with interest rates starting at 9.47%. You can learn more about select banks in the table below.

Bank Name | Starting Interest Rate | Processing Fee | Special Benefits
Indian Bank | 7.75% | Fully Waived (Zero) | No processing charges, which significantly reduces the total cost of the loan.
State Bank of India (SBI) | 8.70% | Special Discount | Direct concessions on interest rates and waivers on processing fees from the country's largest bank.
Kotak Mahindra Bank | As per bank terms | 50% Discount | Zero foreclosure charges (i.e., no penalty for repaying the loan ahead of schedule).
HDFC Bank | 8.25% | As per bank rules | Offers a long tenure of up to 8 years and zero foreclosure charges.

What should you keep in mind when taking a loan?
Buying a car during occasions like Dhanteras and Diwali is considered auspicious. However, always spend according to your needs and take only as much of a loan as you can comfortably repay. Before taking out a loan, thoroughly research the associated costs; also, ensure you understand all charges, fees, and the entire process so that you do not face any difficulties in the future.

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