Bank of Baroda (BoB) on Monday pared the minimum interest rate at which it will offer car loans to 7 per cent against 7.25 per cent earlier.

Additionally, the public sector bank announced a reduction in processing charges to a flat ₹1,500 plus GST for a limited period up to June 30, 2022.

The new rate beginning at 7 per cent along with the concessional processing charges are applicable for a new car purchase. This offering is linked to a borrower’s credit profile, according to a BoB statement.

The existing rate of interest for pre-owned cars and two-wheeler loans remains unchanged, the Bank said.

H T Solanki, General Manager - Mortgages & Other Retail Assets, BoB, said, “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.”

Home loans

On April 22, BoB had announced that its home loan interest rates would start from 6.50 per cent (against 6.75 per cent earlier) till June 30, 2022.

The Bank then said the home loan new rate beginning at 6.50 per cent is available for customers applying for fresh home loans as well as for balance transfers. This special rate is available across all loans amounts and is linked to a borrower’s credit profile.

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