Bank of Baroda: The festive season in India has always been the most awaited time for families to invest in new beginnings — whether it’s buying a dream car, a home, or starting fresh financial journeys. Keeping the festive spirit alive, Bank of Baroda (BoB) has announced a cut in its car loan and mortgage loan interest rates, making borrowing more affordable and customer-friendly.
With this announcement, Bank of Baroda aims to help customers fulfil their aspirations, be it driving home a new car 🚘 or unlocking value from their property 🏡.
🌟 Key Takeaways from the Announcement
- ✅ Car Loan interest rate reduced from 8.40% p.a. to 8.15% p.a.
- ✅ Mortgage Loan (Loan Against Property) interest rate reduced from 9.85% p.a. to 9.15% p.a.
- ✅ Both offers applicable with immediate effect
- ✅ Festive season discounts go beyond the RBI repo rate cuts
- ✅ Car loans can be applied through Baroda Digital Car Loan platform or nearest branch
🚘 Car Loan Rates – Now More Affordable
Bank of Baroda’s floating car loan interest rates will now start at 8.15% per annum, reduced from the earlier 8.40% p.a.. This lower rate applies to customers purchasing a new car, and the final rate depends on the borrower’s credit profile (CIBIL score).
This move makes it easier for families to own a vehicle during the festive season when many prefer to make big-ticket purchases. With car manufacturers also announcing festive discounts and new launches, this interest rate cut further boosts affordability.
🏦 Why the Cut? Connection with RBI Repo Rate
The Reserve Bank of India (RBI) has cut its repo rate by 100 basis points this year across three monetary policy meetings:
- 📉 February: 25 basis points cut
- 📉 April: 25 basis points cut
- 📉 June: 50 basis points cut
This triggered a rate cut cycle, encouraging banks to offer loans at cheaper rates.
👉 However, Bank of Baroda highlighted that its latest cut is over and above RBI’s repo rate reduction, making the bank’s offering even more competitive in the market.
🏡 Mortgage Loan Made Cheaper Too
Not just car loans — Bank of Baroda has also reduced its mortgage loan (Loan Against Property) rates.
- 🔻 Previous rate: 9.85% p.a.
- 🔻 New rate: 9.15% p.a.
This makes it easier for customers to raise funds against their property for business, education, or personal needs. Depending on the CIBIL score, customers can enjoy reduction in rates from 55 basis points to as much as 300 basis points.
📊 Quick Comparison of Old vs New Rates
| Category | Current Rate | Previous Rate |
|---|---|---|
| 🚘 Car Loan Rates | 8.15% p.a. | 8.40% p.a. |
| 🏡 Mortgage Loan Rates | 9.15% p.a. | 9.85% p.a. |
💬 Bank of Baroda’s Statement
Sanjay Mudaliar, Executive Director, Bank of Baroda, shared his thoughts on the announcement:
“The festive season is an auspicious time for new beginnings with many families looking to fulfil their aspirations of owning a new vehicle. Bank of Baroda is pleased to introduce a special offer on our car loan rates that makes car ownership more accessible and affordable. In addition, our mortgage loan offering is now even more competitive giving a great opportunity to unlock higher value for property. Customers can raise additional funds with reduction in interest rates from 55 bps to 300 bps depending on CIBIL score.”
💻 Easy Digital Application Process
Bank of Baroda has made loan applications simple and hassle-free. Customers can apply for a car loan in two ways:
- ✅ Online via Baroda Digital Car Loan Platform
- ✅ Offline by visiting the nearest BoB branch
This digital-first approach ensures faster approval and convenience, especially for tech-savvy customers.
🔒 Fixed Rate Option for Stability
Apart from floating rates, Bank of Baroda also offers an attractive fixed rate of interest on its car loans.
- ⭐ Linked to the bank’s 6-month MCLR
- ⭐ Starting from 8.65% p.a.
This is ideal for customers who prefer predictability in EMIs without worrying about market-linked fluctuations.
🎉 Why This Move Matters
The timing of this announcement couldn’t be better. In India, the festive season is synonymous with:
- 🪔 New beginnings
- 🎁 Big purchases like cars and homes
- 🛍️ Attractive offers from brands and banks
With this reduction, Bank of Baroda positions itself as a customer-first bank, offering loans at affordable rates while encouraging responsible credit.
🚀 Final Thoughts
Bank of Baroda’s decision to cut car loan and mortgage loan interest rates comes as a festive delight for customers. Lower rates not only make car ownership and fund-raising against property more affordable but also align with the aspirations of Indian families during the festive season.
With both floating and fixed-rate options, a digital loan application platform, and a strong focus on customer convenience, this move strengthens BoB’s position in India’s competitive banking sector.
So, if you’re planning to buy your dream car 🚗 or raise funds using your property 🏡, this festive season could be the perfect time to explore Bank of Baroda’s special offers.
