# Festive loan offers: Compare rates and fees > Banks offer festive loan discounts but borrowers must check credit scores and hidden fees. - Title: Festive loan offers: Compare rates and fees · mint | Shortify - Summary: Banks offer festive loan discounts but borrowers must check credit scores and hidden fees. Borrowers should compare total loan costs, not just interest… - Keywords: home loans, car loans, personal loans, interest rates, processing fees, festive offers, credit scores, rbi repo rate, news, india, Festive, loan - Source: mint — https://livemint.com/money/personal-finance/festive-loan-offers-home-loan-car-loan-interest-rates-11793173523456.html - Author: Ananya Grover - Published: 2026-10-28T09:42:24+00:00 - Read time: 1 min - Topics: home loans, car loans, personal loans, interest rates, processing fees, festive offers, credit scores, rbi repo rate, news, india ## Festive loan offers Banks roll out interest-rate concessions and processing-fee waivers during Diwali season. > Diwali is considered one of the most auspicious times for big-ticket purchases ## RBI rate hike impact The RBI increased the repo rate by 25 basis points on 7 October, affecting loan rates. > The Reserve Bank of India (RBI) increased the repo rate by 25 basis points on 7 October ## Home loan rates Banks absorb 5-10bps of the 25-basis-point rate hike through spread compression. > Most banks have absorbed only 5-10bps as part of their festive campaigns ## Bank of Baroda offer Bank of Baroda offers home loans starting at 7.40% with processing fee waiver until 31 October. > Bank of Baroda had increased the rate after the RBI repo rate hike announcement, but has now lowered it by 5bps effective 10 October ## Credit score impact Banks offer concessional rates only to borrowers with credit scores of 800 and above. > State Bank of India (SBI) and IDBI Bank are also advertising concessional rates, but, according to experts, these are reserved for borrowers with excellent credit scores of 800 and above ## Vehicle loan rates HDFC Festive Treats offers car loans starting at 8.25% and personal loans at 9.99%. > HDFC Festive Treats advertises a lower starting rate of 8.25% for car loans and 9.99% for personal loans ## Processing fee waivers Some banks waive processing fees, which typically range from 0.25% to 2% of the loan amount. > And it’s not just a discount on the interest rates, some banks are also advertising waivers or discounts on processing fees ## Car loan savings Car loans at public sector banks start at 7.3-7.5%, with 50-100% off processing fees as festive savings. > Sumit Singla, CEO of Rupyy, said car loans at public sector banks still start at about 7.3-7.5% ## Borrower checklist Borrowers should check credit scores, compare APRs, and avoid unnecessary add-ons. > Borrowers should check their credit score, obtain quotes from at least two to three lenders ## Hidden costs Borrowers may pay 0.5-1% more than advertised rates, especially for riskier loans. > Most borrowers pay 0.5-1% more than the advertised rate, and for riskier personal loans, the total cost, including fees, can be more than double the advertised rate ## No-cost EMI comparison No-cost EMIs on e-commerce sites may not be cheaper than paying upfront for big purchases. > Buyers should compare the upfront product price and total amount payable, as no-cost EMI offers may not always be cheaper than paying upfront ## Festive offer timeline Most festive loan offers run until the end of December, giving time to compare options. > Many offers run until the end of December, which gives you time to compare ## Real benefit factors The real benefit depends on credit profile, lender eligibility, and hidden charges. > The real benefit depends on the borrower's credit profile, the lender's eligibility criteria and the hidden charges ## Key takeaway Borrowers should compare total loan costs, not just interest rates, when choosing festive loan offers.