Bank of Baroda on Monday announced a reduction in its car loan interest rates. The new interest rates will come to force with immediate effect. The bank has reduced loan rates by 30 basis points .

The Bank’s floating rate now starts from 7.60% p.a, down from 7.90% p.a. The Bank also offers an fixed rate of interest on Baroda Car Loans, starting at 8.50%, the bank said.

The new rate beginning at 7.60% p.a. is available on the purchase of a new car and is linked to a borrower’s credit profile.

“In addition to a reduced ROI, the Bank is also offering borrowers zero prepayment/part-payment charges on floating rate car loans for individual borrowers. Further, the interest on Baroda Car Loans – both fixed and floating loans – is calculated on the Daily Reducing Balance method, making it even more affordable for borrowers.  Customers can also benefit from an extended repayment tenure of up to 84 months, providing enhanced financial flexibility,” BoB said in a statement.

Baroda Car Loans can be availed through the Bank’s Digital Lending Platform available on the Bank’s website, bob World app or by visiting any Bank of Baroda branch across the country.

Key Features of Bank of Baroda Car Loans

– Floating interest rate car loans starting at 7.60% p.a.

– Fixed interest rate car loans starting at 8.50% p.a.

– No prepayment/part-payment charges on floating ROI for individuals

– Interest calculated on the Daily Reducing Balance method

– Flexible repayment tenure of up to 84 months

Sanjay V. Mudaliar, Executive Director, Bank of Baroda said, “The reduction in car loan interest rates makes Bank of Baroda one of the most competitive players in the market and reflects our continued focus on offering affordable and accessible credit to consumers. Bank is committed to delivering customer-centric, digitally-enabled financing solutions to support the growing aspiration of car buyers across the country.”