#BankOfBaroda #FestiveSeasonOffer #CarLoan #MortgageLoan #LoanAgainstProperty #AffordableFinance #BarodaDigitalCarLoan #FestiveSavings #NewBeginnings
Chandigarh — In a move aimed at boosting consumer sentiment and supporting household aspirations ahead of the festive season, Bank of Baroda (BoB), one of India’s leading public sector banks, announced a reduction in car loan and mortgage loan interest rates with immediate effect. The step is expected to make both car ownership and property-backed financing more affordable for customers at a time when demand traditionally picks up.
Car loans made cheaper
The bank has cut its floating car loan interest rates to 8.15% per annum, down from the earlier 8.40%. This rate revision, effective immediately, applies to loans for the purchase of new cars and is linked to the borrower’s credit profile, ensuring that those with higher creditworthiness can access better terms.
This reduction comes in addition to earlier downward revisions that followed the Reserve Bank of India’s (RBI) 100 basis points cut in the policy repo rate, making car loans more attractive than ever.
For customers preferring stability over floating rates, Bank of Baroda is also offering fixed-rate car loans starting at 8.65% per annum, linked to the bank’s six-month Marginal Cost of Funds-based Lending Rate (MCLR).
Mortgage loans (Loan Against Property) get competitive
In another significant move, Bank of Baroda has lowered its Baroda Mortgage Loan (Loan Against Property) interest rates from 9.85% per annum to 9.15% per annum. This substantial 70 basis points cut provides a strong incentive for individuals and businesses seeking liquidity by leveraging property.
The bank noted that, depending on the customer’s CIBIL score, reductions could range from 55 basis points to as much as 300 basis points, offering a broad spectrum of borrowers access to funds at lower costs. This flexibility is expected to encourage both salaried and self-employed professionals to tap into property-backed loans for purposes such as business expansion, education, medical needs, or debt consolidation.
Focus on festive aspirations
Commenting on the rate cuts, Shri Sanjay Mudaliar, Executive Director, Bank of Baroda, said:
“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 reductions in interest rates ranging from 55 bps to 300 bps depending on their CIBIL score.”
This focus on affordability aligns with broader consumer behavior during India’s festive period, which typically sees a surge in purchases of vehicles, homes, and high-value consumer goods.
Digital-first convenience
To make the borrowing process easier, Bank of Baroda has enabled a seamless digital loan application facility. Customers can apply for a Baroda Car Loan via the bank’s Digital Lending Platform – Baroda Digital Car Loan, which allows for quick approvals and processing. Applicants can also opt for traditional in-branch applications at the nearest Bank of Baroda branch.
The dual approach — digital convenience and physical accessibility — ensures the bank caters to both tech-savvy urban customers and those in semi-urban or rural areas who still prefer in-person banking.
Competitive positioning in the market
The latest rate cuts place Bank of Baroda in a strong position in the highly competitive lending market. With several banks and non-banking financial companies (NBFCs) expected to announce festive season offers, BoB’s aggressive move ensures it remains a preferred choice for customers seeking cost-effective financing.
Lower interest rates, coupled with flexible repayment options and transparent processing, are likely to attract first-time car buyers as well as families looking to upgrade to newer models. Similarly, competitive mortgage loans can encourage customers to use their property assets more effectively to meet financial needs.
Looking ahead
The reduction in lending rates underscores Bank of Baroda’s strategy of aligning its offerings with customer aspirations, particularly during periods of high consumer activity like the festive season. By making financing more accessible, the bank aims not only to support individual and family goals but also to stimulate economic activity in key sectors such as automobile sales and real estate.
With India’s festive season traditionally viewed as a time for new investments and purchases, these revised loan products are expected to see strong demand.
Key Highlights of the Announcement
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Car Loan Floating Rate: Reduced from 8.40% p.a. to 8.15% p.a.
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Car Loan Fixed Rate: Starting at 8.65% p.a. linked to 6-month MCLR
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Mortgage Loan Rate: Reduced from 9.85% p.a. to 9.15% p.a.
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CIBIL-linked Reductions: Between 55 bps and 300 bps
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Digital Loan Application: Available via Baroda Digital Car Loan Platform
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Festive Season Focus: Designed to encourage purchases and financial access during the auspicious period
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#BankOfBaroda #FestiveSeasonOffer #CarLoan #MortgageLoan #LoanAgainstProperty #AffordableFinance #BarodaDigitalCarLoan #FestiveSavings #NewBeginnings #CustomerFirstBanking #PublicSectorBank #BarodaAdvantage
