Public sector lender Bank of Baroda on Monday said it has lowered the interest rate on car loans by 0.25 per cent to 7 per cent per annum and reduced processing charge for a limited period till June 30 in order to boost lending in car loan segment. The new rate beginning at 7 per cent per annum along with the concessional processing charges are applicable for purchase of a new car. This special rate offering is linked to a borrower’s credit profile, Bank of Baroda said in a statement.
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The bank has announced a reduction in processing charges to a flat Rs 1500 plus GST for a limited period up to June 30, 2022. "While the pandemic and subsequent lockdown impacted the auto segment, we have since seen a steady rise in demand for car loans as the economy has opened up and people are keen to travel in their own vehicles. The drop in the Baroda Car Loan interest rate and reduction in processing charges will make it easier and more affordable for consumers to buy a car of their choice," H T Solanki, General Manager - Mortgages & Other Retail Assets, Bank of Baroda, said in a statement.
"To simplify the process of availing a car loan, Bank of Baroda also provides a seamless digital platform to apply for a loan, receive sanction and disbursement for its pre-approved customers. The Bank is also present on the Maruti Suzuki Smart Finance platform as well as Hyundai Motor India’s Click To Buy portal, making the entire car buying process convenient and hassle-free," Solanki added.
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