Bank of Baroda on Thursday (August 28, 2025) has announced a reduction in its car loan interest rates. Its floating car loan interest rates now start from 8.15% p.a. (earlier 8.40% p.a.), with immediate effect.

“The rate cut is over and above the rate reduction by the bank post the 100 basis points cut in the policy repo rate by the Reserve Bank of India (RBI). The new rate beginning at 8.15% p.a. is applicable on loans for the purchase of a new car and is linked to a borrower’s credit profile,” the bank said in a statement.

The bank has also reduced interest rates on mortgage loans (Loan Against Property) from 9.85% p.a. to 9.15% p.a. with certain conditions, with immediate effect.

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. We are 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, and customers can raise additional funds with a reduction in interest rates from 55 bps to 300 bps depending on CIBIL score,” he added. 

The bank has also offered fixed rate of interest on car loans, linked to it’s 6-month MCLR, starting at 8.65% p.a.