Banks and shadow banks have announced a range of offers for the festivals, hoping the season will lift credit demand amid a muted year.
Lenders have reduced interest rates on loans to buy homes, vehicles or for personal use, along with waiving processing fees and extending repayment tenures.
Many of them have partnered with retailers and ecommerce companies to offer 'instant' EMI options, cashback deals, and discounts on purchases.
ICICI Bank is offering discounts and cashbacks for a wide range of categories, including electronics, mobiles, fashion, travel, groceries, online shopping, furniture, home decor, and dining.
Customers can save up to Rs 50,000 on ICICI Bank credit or debit card transactions, internet banking, cardless EMI, or consumer financing. No-cost EMI is available on credit and debit card purchases.
HDFC Bank, the country's largest private sector lender, has 'festive treats' that offer savings of up to Rs 50,000 on personal, business, car, home, gold, and agriculture loans.
It also has offers on credit and debit cards, savings accounts, and other products.
"By rolling out festive treats in phases from Onam through to Diwali with hyperlocal activations, we will ensure that the offers are not only compelling but also deeply relevant to local communities," said Ravi Santhanam, group head, chief marketing officer and head, direct to consumer products, HDFC Bank.
Axis Bank, another private lender, has launched Dil Se Open Celebrations to offer discounts, cashback, rewards, and 'exclusive deals' for Navratri, Diwali, and Christmas.
Customers will get offers on Axis Bank credit cards used for purchases in ecommerce, electronics, quick shopping and travel.
State Bank of India is offering 10 per cent instant discounts on credit cards used at ecommerce firm Amazon's 'Great Indian Festival' sale.
The State-owned lender has additional discounts on specific high-value mobile phone transactions.
Non-banking financial companies (NBFCs), particularly vehicle financiers, are promoting two-wheeler loans after the Goods and Services Tax (GST) was cut on the entry-level segment.
They aim to serve the surge in demand in Tier-II and Tier-III cities ahead of Dussehra and Diwali in October.
"We are seeing a steady underlying demand and with GST rationalisation easing household budgets, we expect an increase in demand for credit across key segments," said a spokesperson for Mahindra Finance.
"The strongest momentum is visible within the auto ecosystem: Two-wheelers, three-wheelers, passenger vehicles, and tractors. Mortgages are also holding steady, offering balanced growth opportunities. We will have festive offers specific to various regions/markets."
Shriram Finance plans to roll out a scheme for gold, housing and vehicular loans, said a senior official of the NBFC. The purpose is to capitalise on the festival demand for gold, he said.
L&T Finance recently announced three festival schemes for two-wheeler customers: no-cost EMI, prompt payment rebate, and EMI Lite Festive (buy in 2025, pay in 2026).
Up for grabs
- Low interest rates on personal, home, and vehicle loans as well as zero processing fees
- NBFCs target two-wheeler loan segment following new GST rates
- Discounts and cashback for electronics, fashion, online shopping, furniture, home decor, dining
- Festival treats with savings of up to ₹50,000 on loans, as well as credit/debit cards
Feature Presentation: Rajesh Alva/Rediff
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