Bank of Baroda cuts car loan interest rate in limited-period offer; here's all you need to know

Bank of Baroda on Monday announced a reduction in car loan interest rates in a limited-period offer. The PSU lender said its floating interest rates for the car loan segment start at 8.75 per cent per annum, instead of the earlier 9.40 per cent per annum, till March 31, 2024.

The new interest rates took effect from Monday, February 26, Bank of Baroda said in a release. 

The new rate of 8.75 per cent per annum is applicable on the purchase of a new car and is linked to a borrower’s credit profile, the state-run bank said.

Bank of Baroda said it is also offering zero prepayment charges on the floating rate of interest option, and a concession in processing charges on both fixed and floating interest rate options. The lender is also allowing an extended repayment period of up to 84 months, giving borrowers the flexibility of lower equated monthly instalments (EMI).

"We are continuing to see strong demand for car ownership with passenger vehicle sales peaking in January 2024 on the back of a sustained improvement in the Indian economy, rising aspirations and consumer confidence," said Sanjay Mudaliar, Executive Director, Bank of Baroda. 

"Bank of Baroda is one of the leading car financiers in the country and customers can make the most of our special year-end offer on Baroda Car Loans and own their dream car," added Mudaliar.

Here are some key features of Bank of Baroda car loans

• Baroda car loans start at a floating rate of interest of 8.75 per cent till March 31; the fixed rate of interest starts at 8.85 per cent 
• Concessional processing charges on both fixed and floating interest rate options
• No prepayment/part-payment charges on floating RoI
• Interest calculated on the daily reducing balance method
• Flexible tenure up to 84 months
• 0.05 per cent additional RoI applicable for individual customers who do not opt for a group credit life insurance plan for their car loan

How to apply for a Bank of Baroda car loan   

Bank of Baroda said users can apply and avail its car loans digitally through its website, or by visiting the nearest bank branch.