The state-owned Bank of Baroda on Monday announced it would cut interest rates on auto loans by 25 basis points (bps) to 7% a year from 7.25% previously.
The lender also said it has reduced processing fees to a flat £1,500 plus GST for a limited period until 30 June 2022.
When buying a new car, the new tariff and reduced processing fees apply. This interest rate offer is linked to a borrower’s credit profile, according to a press release.
“The drop in the Baroda auto loan interest rate and the reduction in processing fees will make it easier and more affordable for consumers to buy the car of their choice,” said the bank’s general manager (mortgages and other retail investments), HT Solanki.
The existing interest rate for used car and two-wheeler loans will remain unchanged, the lender said.
Last month, it cut the interest rate on home loans from 6.75% to 6.50% per year through June 30, 2022. The new home loan rates are linked to the borrower’s credit profile.