Bank of Baroda Car Loan Interest Rates
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Bank of Baroda Car Loan Interest Rates

Team CARS24
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Headquartered in Vadodra, the Bank of Baroda is an Indian-government-owned banking and financial services company that is the third-largest government bank in the country. Bank of Baroda New Car Loan interest rate ranges from as low as 7.35%, while the interest rate for used cars starts at 10.45%. It must be noted here that these are floating rates and are currently one of the lowest in the country. However, they tend to vary based on the borrower’s earning, occupation, loan amount, and loan tenure. Given below is a table that summarizes the Bank of Baroda Car Loan Interest Rates –

FeaturesNew Car LoanUsed Car Loan
Processing Fee0.75% Max Rs. 10,0000.75% Max Rs. 10,000
Loan TenureUpto 7 yearsUpto 3 years
Lowest EMI₹ 1,526 per lakh₹ 3,104 per lakh
Loan AmountUpto 90% of on-road priceUpto 80%
Prepayment ChargesNilNil

Bank of Baroda Car Loan Interest Rate

Like all other banks, the Bank of Baroda decides the interest rate for the borrower based on many factors, including his credit history, loan amount, loan tenure, income and also his employment category. The borrower’s repayment capacity is decided as per his CIBIL score – 

  Factors That Determine Car Loan Interest Rate
Loan amount The bigger the loan, the lower is its interest rate
Your Salary Higher the earning, lower the interest rate.
Employer Category The employment category makes a huge difference on the rate of interest at which one gets the loan. 
Relationship with the Bank Existing customers of Bank of Baroda with a good reputation in terms of repayment history can get car loans at slightly lower rates
Loan Tenure Bank of Baroda offers new car loans with a loan period of 7 years.
Repayment Capacity Bank of Baroda checks the repayment history through the CIBIL score 

Bank of Baroda Car Loan Eligibility Criteria

The following table depicts the various eligibility criteria for availing a vehicle loan from the Bank of Baroda.

Eligibility Criteria Eligibility Details
Age 21 years – 70 years
Minimum Annual Income  
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 90% of on-road price

While the car loan eligibility is decided based on various factors, the most important of it is one’s ability to pay it back. These are given in the table that we have below – 

  Bank of Baroda Loan Eligibility Criteria
Age Bank of Baroda offers new car loan to people aged between 21 years to 60 years
Income The annual earning of the loan applicant plays a huge role in determining the eligibility to obtain a car loan from Canara Bank
Job stability and Profession One’s job stability, as well as his profession, helps a bank determine an individual’s eligibility
CIBIL Score The CIBIL score influences the rate of interest at which you can obtain a car loan from Canara Bank.
Loan Amount The Canara Bank car loan amount eligibility is based on the income of the borrower. 

Bank of Baroda Car Loan EMI Calculator

Basically, the Bank of Baroda Car Loan EMI is the amount one needs to pay to the bank through easy instalments on pre-defined dates every month. Given below are the factors that determine your EMI – 

  Factors Determining EMI
Rate of interest A high rate of interest leads to a higher EMI
Loan tenure A higher loan tenure will lead to a lower EMI
Loan Amount The higher the loan amount, the higher will be the EMI

Once you have got to know your Bank of Baroda car loan interest rate at which you’ll get the car, you can quickly get to know the EMI through the free Bank of Baroda car loan EMI calculator tool. To use this, you just have to follow some easy steps. Basically, you need to enter the loan amount, the rate of interest and the loan tenure and you can quickly find out the EMI you will need to pay every month. All the EMI calculators work on a standard principle equation

E= P. r. (1+r)n/[(1+r) n -1]

Where,

P is the principal amount (loan amount)

r is the rate of interest per month which is calculated as rate of annual income/ (12*100)

n is the tenure of the loan in months

E represents the monthly payment or EMI

Bank of Baroda Auto Loan Fee and Charges

All banks have some standard charges on the processing of a loan. These charges include two components – foreclosure penalty and processing fee. The foreclosure penalty is levied on the loan applicant in case one needs to pay back his loan, in part or in full, earlier than its maturity. On the other hand, the processing fee is levied when bank issues you the loan. The Bank of Baroda car loan fee and charges have been given below –

Foreclosure Charges Bank of Baroda allows prepayment after paying 1 EMI. It doesn’t levy any prepayment penalty. 
Processing Fee Bank of Baroda charges a processing fee of 0.75% of loan amount. Max. ₹ 10,000 with applicable service tax.

How can I Transfer my Bank of Baroda Car Loan Balance?

You can easily transfer your Bank of Baroda car loan balance from a different bank but you need to know that the availability of this feature is entirely dependent on your eligibility. Therefore, you should first check with the nearest Bank of Baroda branch and then act as per your eligibility status. 

How can I top up my Bank of Baroda Car Loan?

You can top up the car loan once you’ve checked your eligibility for doing so. You can check this at any Bank of Baroda branch that has a car loan department.

Documents required for Canara Bank Car Loan

To get a car loan, the applicant needs to first submit a set of documents to Canara Bank. These documents are required by the bank to analyze the loan application and process it accordingly. Also, it must be noted here that the requirement of the documents differs from a salaried employee to a self-employed professional. Below, we have a table that contains the details of the documents one needs to share with Canara Bank when applying for a car loan- 

Type of Employment Documents Required
For Salaried Individuals

Minimum age to apply: 21 years

Maximum permissible age at loan maturity: 58 years

Minimum annual income: Rs.3 lakhs (3 months’ salary slips/ Form 16 needed for confirmation)Minimum work experience in current job: 1 year

Self Employed Individuals

Minimum age to apply: 21 years

Maximum permissible age at loan maturity: 65 years

Minimum annual income: Rs.2 lakhs (2 years ITR/ Previous year ITR with adv. tax challan for the current year showing higher tax paid than previous year, needed for confirmation

Minimum experience in same business: 2 years.

Partnership Firms

Minimum Annual Income: Rs.2 lakhs (2 years Audited Financials / ITR for last 2 years if audited financials not available are needed for confirmation).

Minimum experience in the same business: 2 years.

Private Limited Company/ Ltd. Co.

Minimum Annual Income: Rs.2 lakhs (Last 2 years ITR & Audited Financial statement needed for confirmation).

Minimum experience in same business: 2 years

Factors Affecting Bank of Baroda Car Loan Interest Rates

The Bank of Baroda decided the interest rate at which it lends money to an individual or a party based on a set of parameters. It should be noted here that the minimum interest rate for a car loan at Bank of Baroda is 7.35% but this can increase by an extent based on various factors. Here, in this table, we have a definite list of all the factors that help the bank figure out the interest rate that it charges to the loan applicant:

Loan amount Bigger the loan, lower is the interest rate
Your Salary Higher the earning, lower the interest rate.
Employer Category The employment category makes a huge difference on the rate of interest at which one gets the loan. 
Relationship with the Bank Existing customers of Canara Bank with a good reputation in terms of repayment history can get car loans at slightly lower rates
Loan Tenure  Canara Bank offers new car loans with a loan period of 7 years.
Repayment Capacity Canara Bank checks the repayment history through the CIBIL score 

FAQs

 

Q: What is the lowest EMI per lakh offered by Bank of Baroda on Car loan?

A: At Bank of Baroda, one can get car loans at as low as 7.35% interest rate, with the lowest EMI per lakh starting at Rs 1,594.

Q: Is there any processing charge on car loan from Bank of Baroda?

A: Car Loan from Bank of Baroda charges a processing fee of 0.75% of loan amount,  capped at a maximum of Rs 10,000

Q: Will I get the car loan from Bank of Baroda if I have a bad credit score?

A: No, if you want to get a car loan from Bank of Baroda, you should have a credit score of at least 700 or above. 

Q: How does a car loan repayment happen?

A: You get to repay the car loan through EMIs (Equated Monthly Installments). When taking the loan, the borrower needs to give some post-dated cheques and sign an ECS mandate in favor of the bank from which he is taking the loan. 

Q: Can I have a co-applicant while applying for a Car loan with Bank of Baroda?

A: Yes, you can have a co-applicant for the car loan in order to boost your eligibility through adding the income of the co-applicant.

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