Loan interest

Bank of Baroda Cuts Interest Rate on Home and Car Loans | Check details here

New Delhi: Bank of Baroda announced on Monday that it had reduced interest rates on home and car loans for a limited period as well as concession fees. Customers should note that the new rates will be applicable until June 30, 2022. The public bank issued a statement and announced a reduction in home loans to 6.50% per annum from 6.75% per annum for a limited period. For auto loans, the interest rate was reduced to 7% per annum, from 7.25% previously.Also read – Good news for credit card users! RBI authorizes linking of Rupay credit card with UPI | all you need to know

In a statement, the bank further said that it has also reduced the processing fee to ₹1,500 (plus GST) for a limited period until the end of June this year. Also Read – Tax Filing: Government Says No Data Breaches Reported on IT Portal, Asks Infosys to Fix Issue

The new interest rate starting at 7% per annum as well as the preferential processing fees are applicable for the purchase of a new car. This special rate offer is tied to the borrower’s credit profile, the statement said. Also Read – SBI CBO 2022 Result Declared; Download the interview call letter here

Here are the new interest rates on home and auto loans

  • Home loans reduced from 6.75% to 6.50% per year
  • For car loans, the interest rate has been reduced to 7% per annum from the previous rate of 7.25%.
  • Processing fee up to ₹1,500 (plus GST) for a limited period until the end of June this year

“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. The lower interest rate on the Baroda car loan and lower processing fees will make it easier and more affordable for consumers to purchase the car of their choice,” said a Mint report quoting HT Solanki , Managing Director – Mortgages and Other Retail Assets, Bank of Barode.

He further added that to simplify the process of getting a car loan, Bank of Baroda also provides a seamless digital platform to apply for loan, receive sanction and disbursement for its pre-approved clients.