Bank of Baroda slashes car loan, LAP rates ahead of festive season

Bank of Baroda reduces car loan rates to 8.15% and loan against property rates to 9.15%, effective immediately, as part of festive season offers linked to borrower profiles

At the onset of the festive season, state-owned Bank of Baroda (BoB) has cut interest rates on car loans by 25 basis points (bps), reducing them to 8.15 per cent from 8.40 per cent, with immediate effect. The bank has also reduced rates on its loan against property (LAP) product — the Baroda Mortgage Loan — by 60 bps, bringing it down to 9.15 per cent from 9.85 per cent.

 

This reduction in car loan rates comes on top of the cuts implemented after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) lowered the repo rate by 100 bps since February. The repo rate currently stands at 5.5 per cent.

 

 

 

The new rate, starting at 8.15 per cent per annum, applies to loans for the purchase of new cars and is linked to the borrower’s credit profile, the bank said.

 

In addition, the bank is offering a fixed rate of interest on car loans, linked to the six-month marginal cost of funds-based lending rate (MCLR), starting at 8.65 per cent.

 

“The festive season is an auspicious time for new beginnings, with many families aspiring to own a new vehicle. Bank of Baroda is pleased to introduce a special offer on our car loan rates that makes car ownership more accessible and affordable. Our mortgage loan offering is now even more competitive, providing a strong opportunity to unlock higher value from property. Customers can raise additional funds with interest rate reductions ranging from 55 bps to 300 bps, depending on their CIBIL score,” said Sanjay Mudaliar, Executive Director, Bank of Baroda.