Bank of Baroda Cuts Car Loan, LAP Rates Ahead of Festive Season

Bank of Baroda (BoB) has reduced interest rates on car loans by 25 basis points, as per news reports. The rate now stands at 8.15% per annum, down from 8.40%. The revision is effective immediately and applies to new car purchases. Loan eligibility and final rates will continue to depend on the borrower’s credit profile.

Loan Against Property Revised

The bank has also lowered rates on its loan against property product, called the Baroda Mortgage Loan. Rates have been cut by 60 basis points to 9.15%, compared to the earlier 9.85%. Depending on credit scores, customers could see rate reductions between 55 basis points and 300 basis points.

Fixed Rate Option for Car Loans

Apart from the floating rate, BoB is offering a fixed rate option on car loans. These will be linked to the 6-month marginal cost of funds-based lending rate (MCLR), starting at 8.65%. This option is available for borrowers looking at fixed repayment terms.

Link to Monetary Policy

As per news reports, the move follows a series of changes in lending rates across the banking sector. Since February, the Reserve Bank of India’s Monetary Policy Committee has lowered the repo rate by 100 basis points. The repo rate is currently at 5.5%, creating scope for banks to adjust retail loan rates downward.

Festive Season Context

The timing of the reduction coincides with the start of the festive season, a period typically associated with higher spending on big-ticket purchases such as vehicles and homes. By revising both car loan and property loan rates, the bank has added to recent easing trends in lending.

Read More: Govt Selects Goldman Sachs as Sole Banker for 4 PSBs Stake Sale!

Bank of Baroda Share Price Performance 

As of August 29, 2025, 10:44 AM, Bank of Baroda share price was trading at ₹233.65 on the BSE, up 0.41 points or 0.18% from the previous close.

Conclusion

Bank of Baroda has cut car loan rates to 8.15% and loan against property rates to 9.15%. The changes, effective immediately, show broader rate adjustments in the sector.

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