In a statement, the bank further said that it has also reduced processing charges to a flat ₹1,500 (plus GST) for a limited period till June end this year.
"There is a processing fee reduction of ₹1,500 for car loan and it is applicable till 30 June, 2022," the bank said.
The new rate and the concessional processing charges are applicable for purchase of a new car. This rate offering is linked to a borrower's credit profile, the bank said in a release.
The bank, in April, cut the lending rate for home loans by 25 basis points to 6.5% till end of June next month. This rate is available across all loans amounts and is linked to a borrower’s credit profile.
BoB had said that the new rate is available for customers applying for fresh home loans as well as for balance transfers. It is available across all loan amounts and will be offered to borrowers having Cibil score of 771 and upwards.
HT Solanki, General Manager - Mortgages & Other Retail Assets, Bank of Baroda said, “While the pandemic and subsequent lockdown impacted the auto segment, we have since seen a steady rise in demand for car loans as the economy has opened up and people are keen to travel in their own vehicles. The drop in the Baroda Car Loan interest rate and reduction in processing charges will make it easier and more affordable for consumers to buy a car of their choice."
He further added that to simplify the process of availing a car loan, Bank of Baroda also provides a seamless digital platform to apply for a loan, receive sanction and disbursement for its pre-approved customers.
