Bank of Baroda Car Loan Interest Rate

Bank of Baroda (BOB) offers attractive car loan schemes with competitive interest rates and flexible repayment terms to suit different customer profiles. Their car loans are available for new as well as used vehicles.

Bank of Baroda Car Loan Interest Rates:

• Interest Rate: Starts from 8.90% per annum (subject to change based on applicant’s profile and loan tenure)
• Loan Tenure: Up to 7 years (84 months)
• Loan Amount: Up to 90% of the on-road price of the vehicle (or ex-showroom price, depending on the model and borrower’s profile)
• Processing Fees: 0.50% of the loan amount (minimum ₹2,500 and maximum ₹10,000)

Key Features of Bank of Baroda Car Loan:

1. Competitive Interest Rates: BOB offers car loan interest rates starting as low as 8.90%, making it one of the more affordable options in the market.
2. Flexible Loan Tenure: Choose a repayment period that ranges from 12 to 84 months based on your comfort.
3. High Loan Amount: BOB finances up to 90% of the on-road price for new cars, meaning you need minimal down payment.
4. Quick Processing: The loan processing is quick with minimal paperwork, ensuring faster approvals and disbursals.
5. No Prepayment Penalty: If you wish to foreclose or prepay the loan before the tenure ends, BOB does not charge prepayment penalties, offering greater flexibility.

Factors Affecting Interest Rates:

1. Credit Score: A high credit score (700+) may result in more favorable interest rates.
2. Loan Tenure: A longer loan tenure might attract a slightly higher interest rate, while shorter tenures could have lower rates.
3. Borrower Profile: Salaried individuals with stable income or self-employed with consistent business income may receive lower rates.
4. Type of Vehicle: New vehicles usually have lower interest rates compared to used cars.

Eligibility Criteria:

• Age: Between 21 to 70 years
• Employment: Salaried individuals, professionals, or self-employed individuals with a stable income
• Income: The minimum income required is ₹3 lakhs annually

Documents Required:

• Identity Proof: Aadhar Card, PAN Card, Passport, or Voter ID
• Income Proof: Latest salary slips for salaried employees, or ITR (Income Tax Returns) for self-employed individuals
• Address Proof: Utility bills, Passport, or Rent Agreement
• Vehicle Details: Proforma invoice from the car dealership

Loan EMI Calculation Example:

For example, if you borrow ₹10,00,000 for 5 years (60 months) at an interest rate of 9%, your EMI (Equated Monthly Installment) would be around ₹20,760 per month. You can calculate the exact EMI using BOB’s online car loan EMI calculator.

Additional Fees:

• Processing Fee: 0.50% of the loan amount
• Late Payment Fee: 2% of the overdue EMI amount, charged monthly

Steps to Apply for BOB Car Loan:

1. Visit the Bank of Baroda Website: You can apply online through the bank’s official portal.
2. Select the Car Loan Option: Fill out the car loan application form with your details.
3. Submit Documents: Provide the required documents like ID proof, income proof, and vehicle details.
4. Loan Disbursal: Upon approval, the loan amount will be directly transferred to the dealer’s account or your account.

Conclusion:

Bank of Baroda’s car loan is a great option for individuals looking for low interest rates, flexible tenures, and minimal processing fees. With the added benefit of no prepayment penalties, BOB ensures a smooth financing option for your vehicle purchase. Before applying, always compare various loan options and check your eligibility to get the best rates.