Bank of Baroda cuts interest rate on car loans to 7%

State-run Bank of Baroda on Monday announced a 25 basis points (bps) reduction in its car loan interest rates to 7% per annum from 7.25% earlier.

The lender also said it has reduced processing charges to a flat ₹1,500 plus GST for a limited period up to June 30, 2022.

The new rate and the concessional processing charges are applicable for purchase of a new car. This rate offering is linked to a borrower’s credit profile, it said in a release.

“The drop in the Baroda car loan interest rate and reduction in processing charges will make it easier and more affordable for consumers to buy a car of their choice,” the bank’s General Manager (Mortgages & Other Retail Assets) H. T. Solanki said.

The existing rate of interest for pre-owned cars and two-wheeler loans remains unchanged, the lender said.

Last month, it had reduced interest rate on home loans to 6.50% per annum from 6.75% till June 30, 2022. The new home loan rates are linked to the borrower’s credit profile.