The Bank of Baroda on Monday announced a 25 basis point (bps) cut in its interest rates on car loans to 7% per annum from the previous rate of 7.25%.
In a statement, the bank further said that it has also reduced processing fees to a fixed level. ₹1,500 (plus GST) for a limited period until the end of June this year.
“There is a reduction in processing fees of ₹1,500 for a car loan and it is applicable until June 30, 2022,” the bank said.
The new rate and the preferential processing fees are applicable for the purchase of a new car. This rate offer is tied to the borrower’s credit profile, the bank said in a statement.
The bank in April cut the lending rate for home loans by 25 basis points to 6.5% until the end of June next month. This rate is available for all loan amounts and is linked to the borrower’s credit profile.
BoB had said the new rate is available to customers applying for new home loans as well as balance transfers. It is available for all loan amounts and will be offered to borrowers with a Cibil score of 771 and above.
HT Solanki, Managing Director – Mortgages and Other Retail Assets, Bank of Baroda, said: “While the pandemic and subsequent lockdown have impacted the automotive segment, we have since seen a steady increase in demand for car loans as the economy has opened up and people are keen to travel in their own vehicles.The lower interest rate for the Baroda car loan and reduced processing fees will allow consumers to easier and cheaper to buy the car of their choice.”
He further added that to simplify the process of getting a car loan, Bank of Baroda also provides a seamless digital platform to apply for loan, receive sanction and disbursement for its pre-approved clients.