Mumbai, India | February 10, 2026
Car buyers have reason to cheer as Bank of Baroda (BoB) has announced a 0.30 percentage point reduction in its car loan interest rates. The revised rates have come into effect immediately, making vehicle financing more affordable for customers.
The move comes at a time when banks are competing aggressively to boost retail loan growth, especially in the auto segment.
New Car Loan Interest Rates Explained
According to the bank, the floating (variable) interest rate on car loans will now start at 7.6% per annum, depending on the borrower’s credit profile and loan eligibility.
In addition, Bank of Baroda is also offering an attractive fixed interest rate option under its Baroda Car Loan scheme. The fixed-rate car loans will begin at 8.5% per annum, providing customers stability against future rate fluctuations.
Immediate Benefit for New Car Buyers
The rate cut is expected to reduce monthly EMIs, making car ownership more accessible for salaried professionals, self-employed individuals, and first-time buyers.
Bank officials said the revised pricing is aimed at improving affordability while offering customers the flexibility to choose between floating and fixed interest rate options based on their financial planning needs.
Why This Matters
Lower EMIs due to reduced interest rates
Choice between floating and fixed-rate car loans
Immediate implementation — no waiting period
Increased affordability amid rising vehicle prices
Auto industry experts believe such rate cuts could provide a boost to passenger vehicle demand, especially in the entry-level and mid-size segments.
What Borrowers Should Know
Final interest rates may vary based on factors such as credit score, income profile, loan tenure, and vehicle type. Customers are advised to check detailed eligibility criteria and terms directly with Bank of Baroda branches or official channels.
