Planning To Buy New Car? Bank of Baroda Reduces Car Loan Rates; Check Full Info

In a bid to make car ownership more affordable, Bank of Baroda, has recently revised the car loan rates and that of loans in other categories for its customers. The revised car loan rates will make it more affordable for people who are planning to buy a car in the coming festive season.

As the home loan rates have been reduced, the floating car loan interest rates now begin at 8.15% per annum, down from the previous 8.40%. The reduction in car loan rates aligns with low repo rates. The Reserve Bank of India has reduced the repo rates by 100 basis points since the beginning of the year 2025. The RBI in its August monetary policy repo rate cut meeting has expressed optimism that the repo rate cut would give the much needed consumption boost to the Indian economy.

Some experts have hinted of another rate cut by the end of the year. As per the bank statement, the new rate of 8.15% per annum applies to loans for purchasing new cars and is linked to the borrower's credit profile. This adjustment is part of their strategy to make car ownership more affordable during the festive season.

BoB Reduces Mortgage Loan Rate

Apart from reducing the car loan rates, the BoB has also trimmed the mortgage loan rate, which is known as Loan Against Property. The rates have been lowered from 9.85% per annum to 9.15%, with specific conditions attached, and are effective immediately.

Calling the step a much needed action to boost consumption demand and consumer confidence, Sanjay Mudailar, Executive Director at Bank of Baroda has called it a positive step ahead of the festive season.

"The festive season is an auspicious time for new beginnings, with many families looking to fulfil their aspirations of owning a new vehicle," he stated.BoB Fixed Rate Car Loans

The BoB also offers fixed-rate car loans linked to six-months MCLR, which starts at a rate of 8.65% per annum. The facility lets customers to consider another option when opting for financing their vehicles.

Mudaliar further added that their mortgage loan offering has become more competitive. "Our mortgage loan offering is now even more competitive, giving a great opportunity to unlock higher value for property," he said.

He also mentioned that customers could raise additional funds with interest rate reductions ranging from 55 basis points to 300 basis points, depending on their CIBIL score.

This strategic move by Bank of Baroda aims to make financial products more accessible and appealing during a time when many individuals are looking to make significant purchases or investments.