The state-run lender also said it has reduced the processing fee to Rs 1,500 plus GST for a limited period until June 30, 2022.
The existing interest rate for second-hand and two-wheeler loans remains unchanged, the bank said.
“While the pandemic and subsequent lockdown have impacted the auto segment, we have since seen a steady increase in demand for auto loans as the economy has opened up and people want to travel in their own vehicle. Baroda’s lower car loan interest rate and lower processing fees will make it easier and more affordable for consumers to purchase the car of their choice,” said HT Solanki, General Manager – Mortgages and other retail assets, Bank of Baroda, in a statement.
“To simplify the process of obtaining a car loan, Bank of Baroda also provides a seamless digital platform to apply for a loan, receive sanctions and disbursements for its pre-approved customers. The Bank is also present on the Maruti Suzuki Smart Finance platform as well as Hyundai Motor India’s Click To Buy portal, which makes the whole car buying process convenient and hassle-free,” added Solanki.
The Bank of Baroda previously cut mortgage rates by 25 basis points to 6.50%. In a statement dated April 22, the lender said interest rates on home loans had been reduced from 6.75% to 6.50% until June 30, 2022. In addition, the bank will grant a waiver of 100% on processing fees during this period. BoB said the latest rates will apply to both new loans and balance transfers.