Bank of Baroda reduces floating car loan rates by 30 bps to 7.60%

A general view of Bank of Baroda in New Delhi
| Photo Credit:
AMAN RAJ

Bank of Baroda (BoB) has lowered its car loan interest rates by 30 basis points (bps). The revised floating rate now begins at 7.60 per cent, a reduction from the previous 7.90 per cent.

According to a statement from the public sector lender, the new rates apply immediately and are available for financing new car purchases, subject to an assessment of the borrower’s creditworthiness. Fixed-rate car loan options will start at 8.50 per cent.

The bank has also eliminated prepayment and partial payment fees for individual borrowers opting for floating-rate car loans.

Interest on both fixed and floating-rate car loans will be calculated using the daily reducing balance method. Borrowers can now access extended repayment periods of up to 84 months.

Sanjay V. Mudaliar, Executive Director, stated: “This rate revision establishes Bank of Baroda as one of the most competitive lenders in the sector, reinforcing our commitment to delivering cost-effective credit solutions to customers.”

Published on February 9, 2026