THEBUSINESSBYTES BUREAU
MUMBAI, FEBRUARY 9, 2026
Bank of Baroda has reduced its car loan interest rates by 30 basis
points, bringing the starting floating rate down to 7.60 per cent per annum
from 7.90 per cent, in a move aimed at making vehicle financing more affordable
and competitive.
The revised rate, effective immediately, applies to new car purchases and
is linked to the borrower’s credit profile. The bank is also offering
fixed-rate car loans starting at 8.50 per cent per annum, providing customers
with an option to lock in stable repayment terms.
Alongside the rate cut, the lender has waived prepayment and part-payment
charges on floating-rate car loans for individual borrowers. Interest on both
fixed and floating variants will be calculated on the daily reducing balance
method, lowering the overall interest burden and improving affordability.
Customers can avail repayment tenures of up to 84 months, enhancing financial
flexibility.
Sanjay V. Mudaliar, Executive Director of Bank of Baroda, said the reduction positions the bank among the most competitive auto financiers while reinforcing its focus on affordable, accessible and digitally enabled credit solutions for aspirational car buyers.
Baroda Car Loans can be accessed through the bank’s digital lending platform on its website and bob World app, as well as at branches nationwide, with digital car loans offering quick approvals through a streamlined process.
