Bank of Baroda on Thursday announced a 0.25% reduction in interest rates on some of its selected home and vehicle loans. The bank made this decision because of the festive season, so more people can fulfill their dreams by taking loans.
According to the bank, customers buying a new vehicle can now get a loan at an interest rate of 8.15%, down from 8.40%. This rate may change depending on the customer’s credit profile. The bank also said it is offering a vehicle loan linked to the six-month MCLR (Marginal Cost of Funds Based Lending Rate) at a rate of 8.65%.
New Home Loan Rates and Bank Strategy
The bank has also reduced the interest rate on loans taken by mortgaging property (Loan Against Property) from 9.85% to 9.15%. This will help customers, especially those who want a loan for home repair, expansion, or other needs.
Bank of Baroda Executive Director Sanjay Mudaliar said that these reductions make our home loan offers more competitive. Our goal is to provide affordable financial services to customers.
Car Loan Rate Cut
Bank of Baroda on Thursday (August 28, 2025) cut its car loan interest rates. The floating car loan rate now starts at 8.15% p.a. (earlier 8.40% p.a.), with immediate effect. The new rate will depend on the borrower’s credit profile. The bank also offered a fixed rate on car loans linked to its 6-month MCLR, starting at 8.65% p.a.
Mortgage Loan Rate Cut
The bank also cut mortgage loan (Loan Against Property) rates from 9.85% p.a. to 9.15% p.a., with some conditions.
Sanjay Mudaliar, Executive Director, said the festive season is the right time for families to buy new vehicles. He added that the new offers make car ownership and mortgage loans more affordable.