As the festive season approaches, lenders are vying for customers with lower rates and attractive incentives, especially for electric vehicles, reshaping the timing and economics of car purchases.
The run-up to the festive season has once again turned the car-loan market into a race for borrowers, with banks and non-banking finance companies trying to pull in customers through lower rates and narrower processing costs. Business Standard, drawing on Paisabazaar data, said the current spread of offers is broad enough to make this one of the more attractive moments to finance a vehicle purchase, particularly for buyers who have been waiting for seasonal discounts and delivery-linked offers. (business-standard.com)
That competition is showing up in headline rates. The Economic Times reported that some lenders are now advertising car loans from as low as 7.6%, while Bank of Baroda has cut its new-car loan rate to 8.15% a year, according to Livemint. The broader pattern is familiar: festive-season lending tends to bring short-lived concessions, but the real cost of borrowing still depends on the borrower’s credit profile, loan tenor and any charges attached to the deal. (prms.prharyana.gov.in)
For electric-vehicle buyers, the timing may be even more favourable. Haryana’s government has begun offering a 100% exemption from motor vehicle tax on new EVs priced up to ₹30 lakh, with the policy taking effect on 21 August 2026, according to an official state press release. Delhi’s transport department has also published a draft EV policy that grants full exemption from road tax and registration fees on electric cars priced at or below ₹30 lakh, reinforcing the incentives already reflected in local reporting on the policy. (prms.prharyana.gov.in)
Those state-level measures matter because they can change the economics of buying a car far more than a small rate cut on the loan itself. For some buyers, the savings on registration and taxes may outweigh a modest difference in interest cost, especially on higher-value EVs. For others, the better bargain may still be a conventional petrol or hybrid model if the finance offer is stronger and the buyer expects to keep the vehicle for longer than the promotional period. (prms.prharyana.gov.in)
That is why the best festive-season deal is not necessarily the lowest advertised rate. Market comparisons cited by Business Standard and other financial publications show that the cheapest offers often come with conditions, from limited tenors to requirements around credit history and down payment. Borrowers who compare the full lifetime cost of the loan, rather than the monthly EMI alone, are likely to make the better decision. (business-standard.com)
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
