A general view of Bank of Baroda in New Delhi
| Photo Credit:
AMAN RAJ
Bank of Baroda (BoB) has reduced its car loan interest rates by 30 basis points (bps), with the floating rate starting from 7.60 per cent against 7.90 per cent earlier.
The public sector bank, in a statement, said the new rate, which comes into effect immediately, beginning at 7.60 per cent is available on the purchase of a new car and linked to a borrower’s credit profile. Fixed interest rate car loans start at 8.50 per cent.
In addition, the bank will not charge individual borrowers for prepayment/ part-payment on floating rate car loans.
Further, the interest on car loans — both fixed and floating loans — is calculated on the daily reducing balance method, making it affordable. The bank offers an extended repayment tenure of up to 84 months.
Sanjay V. Mudaliar, Executive Director, said, “The reduction in car loan interest rates makes Bank of Baroda one of the most competitive players in the market and reflects our continued focus on offering affordable and accessible credit to consumers.”
Published on February 9, 2026
