The new rate beginning at 8.15 percent per annum is applicable on loans for the purchase of a new car and is linked to a borrower’s credit profile.
Notably, RBI has cut repo rate by 100 basis points this calendar across three monetary policy meets. In February and April policy meets, repo rate was cut by 25 basis points each and 50 basis points in June meet. That had triggered the rate cut cycle following which most banks started cutting loans at lower rates of interest.
However, the state lender claims that the latest rate cut is over and above the rate reduction by the Bank post the 100 basis points cut in the policy repo rate by the Reserve Bank of India (RBI).
Mortgage loan
Bank of Baroda has also reduced interest rates on Baroda Mortgage Loan (Loan Against Property) from 9.85 per cent annually to 9.15 percent per annum with immediate effect.
Commenting on the announcement, Sanjay Mudaliar, Executive Director, Bank of Baroda said, “The festive season is an auspicious time for new beginnings with many families looking to fulfil their aspirations of owning 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. In addition, our mortgage loan offering is now even more competitive giving a great opportunity to unlock higher value for property and customers can raise additional funds with reduction in interest rates from 55 bps to 300 bps depending on CIBIL score.”
Applicants can apply for a Bank of Baroda Car Loan digitally through the Bank’s Digital Lending Platform – Baroda Digital Car Loan or by visiting the nearest bank branch.
The Bank also offers an attractive fixed rate of interest on Baroda Car Loans, linked to the Bank’s 6-month MCLR, starting at 8.65% p.a.
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