Bank of Baroda cuts car loan rates to 7.60%

Mumbai : Bank of Baroda has reduced its car loan interest rates by 30 basis points, bringing the starting floating rate down to 7.60 per cent per annum from 7.90 per cent, with immediate effect. The move positions the lender among the more competitive players in the retail auto finance segment amid steady demand for passenger vehicles.

The revised floating rate linked to the borrower’s credit profile applies to new car purchases. The bank also continues to offer fixed-rate car loans starting at 8.50 per cent per annum.

Alongside the rate cut, the lender has waived prepayment and part-payment charges on floating rate car loans for individual borrowers. Interest for both fixed and floating rate loans is calculated on a daily reducing balance basis, which lowers the effective interest burden over the repayment period.

Customers can opt for repayment tenures of up to 84 months, allowing greater flexibility in structuring instalments.

Sanjay V. Mudaliar, Executive Director, Bank of Baroda, said the rate reduction is aimed at improving affordability and widening access to vehicle financing. He added that the bank remains focused on delivering customer-centric and digitally enabled lending solutions to meet rising aspirations among car buyers.

Car loans can be accessed through the bank’s digital lending platform via its website and mobile banking app, as well as through branches across the country. Quick-approval digital car loans are also being offered through a simplified application journey.

Key features of the revised car loan offering:

Floating rates starting at 7.60 per cent per annum

Fixed rates starting at 8.50 per cent per annum

No prepayment or part-payment charges on floating rate loans for individuals

Interest computed on daily reducing balance

Repayment tenure of up to 84 months

End-to-end digital loan option with quick approval steps