Bank of Baroda cuts interest rate on car loans to 7%
Bank of Baroda, one of India’s leading public sector banks, announced a 25 basis point (bps) cut in its auto loan interest rates to 7% pa from 7.25% previously.
Additionally, the bank has also reduced the processing fee to ₹1,500 (plus GST) for a limited period until the end of June this year.
In a statement, the bank said: “The new rate as well as the preferential processing fee is applicable for the purchase of a new car.”
The new rate would be tied to the borrower’s credit profile. However, the existing interest rate for used car and two-wheeler loans remains unchanged.
HT Solanki, Managing Director – Mortgages and Other Retail Assets, Bank of Baroda said: “We are seeing a steady increase in demand for car loans as the economy has opened up. The lower Baroda car loan interest rate and lower processing fees will make it easier for consumers to purchase the car of their choice.
With a transparent digital platform, the bank facilitates a smooth working process. “The bank is also present on Maruti Suzuki Smart Finance platform as well as Hyundai Motor India’s Click to Buy portal to provide a hassle-free experience for car buyers,” Solanki added.
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The bank also cut interest rates on home loans from 6.50% per annum until the end of June this year.