State-run Bank of Baroda on Monday announced a 25 basis points (bps) reduction in its car loan interest rates to 7 per cent per annum from 7.25 per cent earlier.
The lender also said it has reduced processing charges to a flat Rs 1,500 plus GST for a limited period up to June 30, 2022.
The new rate and the concessional processing charges are applicable for purchase of a new car. This rate offering is linked to a borrower's credit profile, it said in a release.
''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,'' the bank's General Manager (Mortgages & Other Retail Assets) H T Solanki said.
The existing rate of interest for pre-owned cars and two-wheeler loans remains unchanged, the lender said.
Last month, it had reduced interest rate on home loans to 6.50 per cent per annum from 6.75 per cent till June 30, 2022. The new home loan rates are linked to the borrower's credit profile.
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