Bank of Baroda (BoB) has cut floating interest rates on car loan by 65 basis points for a limited period up to March-end 2024. With this car loan interest rates now start at 8.75 per cent against 9.40 per cent earlier.
The public sector bank said it is also offering car loans at fixed rate of interest starting at 8.85 per cent.
The new floating rate car loan beginning at 8.75 is applicable on the purchase of a new car and is linked to a borrower’s credit profile, per a Bank statement.
Additionally, the bank is offering borrowers zero prepayment charges on the floating rate of interest option and a concession in processing charges on both fixed and floating interest rate options.
Further, the interest on car loans (both fixed and floating) is calculated on daily reducing balance method, making it even more affordable for borrowers.
The bank is also offering an extended repayment period of up to 84 months, allowing borrowers the flexibility of lower Equated Monthly Instalments (EMI).
Sanjay Mudaliar, Executive Director, BoB, said, “We are continuing to see strong demand for car ownership, with passenger vehicle sales peaking in January 2024, on the back of a sustained improvement in the Indian economy, rising aspirations and consumer confidence.”