Mumbai, August 28 — In a strategic move to boost retail credit demand ahead of the festive season, Bank of Baroda (BoB) has announced a reduction in interest rates on car loans and loans against property (LAP), effective immediately.
The bank has lowered its floating car loan interest rate by 25 basis points, bringing it down to 8.15% per annum from the earlier 8.40%. This rate applies to loans for the purchase of new vehicles and is linked to the borrower’s credit profile. Additionally, BoB is offering a fixed rate option on car loans, tied to its six-month marginal cost of funds-based lending rate (MCLR), starting at 8.65% per annum.
In parallel, the interest rate on the Baroda Mortgage Loan—BoB’s LAP product—has been reduced by 70 basis points, from 9.85% to 9.15% per annum. The revised LAP rates are also credit-score dependent, with eligible customers potentially benefiting from reductions ranging between 55 and 300 basis points.
The rate cuts follow the Reserve Bank of India’s recent 100 basis point reduction in the policy repo rate, which now stands at 5.5%. BoB’s latest move is expected to make credit more accessible and affordable for consumers looking to finance vehicles or unlock liquidity from property assets.
Sanjay Mudaliar, Executive Director of Bank of Baroda, stated, “The festive season is an auspicious time for new beginnings, with many families aspiring to own a new vehicle. Our special offer on car loan rates makes ownership more accessible. Similarly, our mortgage loan offering is now even more competitive, providing a strong opportunity to unlock higher value from property.”
The revised rates are part of BoB’s broader festive campaign aimed at enhancing customer engagement and supporting financial aspirations during the high-consumption period. Customers are encouraged to check their eligibility and credit profiles to avail the best possible rates under the new scheme.
