Bank of Baroda Car Loan Interest Rate

Last Updated 18th Jun 2018

Bank of Baroda Car Loan Interest Rate Jun 2018

Bank of Baroda New Car Loan interest rate starts from 8.80% and Bank of Baroda Used Car Loan interest rates starts from 10.45% . These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure. Check Best Offers

Bank of Baroda Car Loan
Features New Car Loan Used Car Loan
Processing Fee 0.75% Max Rs. 10,000 0.75% Max Rs. 10,000
Loan Tenure Upto 7 years Upto 3 years
Lowest EMI Rs. 1,599 per lakh Rs. 3,171 per lakh
Loan Amount Upto 85% of on-road price Upto 80%
Prepayment Charges Nil Nil

High Loan amount of up to Rs. 1 crore across categories

Apply Car Loan @ 9.25%*
Rs.
Rs.
+91

Bank of Baroda Car Loan

Bank of Baroda gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from Bank of Baroda are:

  • High Loan amount of up to Rs. 1 crore across categories
  • Zero prepayment charges
  • Eligibility up to 60 per cent of gross monthly income
  • Low processing fee starting from 0.50 percent of loan amount

Bank of Baroda Car Loan Interest Rate

Bank of Baroda Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. Bank of Baroda offers 85% of on-road price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate Bank of Baroda varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. Bank of Baroda has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low Bank of Baroda car loan rate.
  • Relationship with the Bank: Bank of Baroda offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: Bank of Baroda vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, Bank of Baroda checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

Bank of Baroda Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 65 years
Minimum Annual Income
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 85% of on-road price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. Bank of Baroda offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.

Income: Bank of Baroda car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from Bank of Baroda. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best Bank of Baroda car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your Bank of Baroda car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: Bank of Baroda auto loan amount depends upon your income. Bank of Baroda Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your Bank of Baroda car loan status online and avial multiple benefits.

Bank of Baroda Car Loan Calculator

Car Loan EMI of Bank of Baroda is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by Bank of Baroda is Rs. 1,599 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of Bank of Baroda depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
Bank of Baroda EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

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

Where,

  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

Bank of Baroda Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Bank of Baroda allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.

Processing Fee - Bank of Baroda asks for a processing fee of 0.75% of loan amount. Max. Rs.10,000 with applicable service tax.

Bank of Baroda Car Loan Top up, Balance Transfer

  • Bank of Baroda offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from Bank of Baroda, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car

Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on Bank of Baroda Car Loan

What is car loan interest rate offered by Bank of Baroda ?

As per current interest rates, Bank of Baroda car loan interest rates are in the range of 8.80 % to 10.55%.

What is the lowest EMI per lakh on Bank of Baroda car loan?

Lowest EMI per lakh is Rs. 1,599 for Bank of Baroda for a loan availed at an interest rate of 8.80% and for a tenure of 7 years.

What is the maximum tenure of Bank of Baroda car loan?

You can repay your Bank of Baroda car loan in a flexible period of 7 years.

How much car loan I can borrow from Bank of Baroda?

Bank of Baroda offers you 85% of on-road price of car as loan.

How much processing fee is charged by Bank of Baroda on car loan?

Bank of Baroda charges a processing fee of 0.75% of loan amount Max. Rs. 10,000 with applicable service tax.

Is age an eligibility factor to get car loan from Bank of Baroda?

Yes, age is an important eligibility factor to get Bank of Baroda car loan as you should be at least 21 years old at loan approval time and 65 years old at loan maturity time.

Are there any prepayment charges on Bank of Baroda car loan?

You can take car loan from Bank of Baroda with prepayment nil.

Can I add my spouse's income while applying for car loan from Bank of Baroda ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Compare Car Loan Interest Rates of Bank of Baroda with other banks


Bank of Baroda Car Loan News - Jun 2018
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