New Delhi [India], August 31 (ANI): Bank of Baroda has this week announced a reduction in its car loan interest rates to mark the beginning of the festive season.

According to Bank of Baroda, floating car loan interest rates now start from 8.15 per cent* per annum (earlier 8.40 per cent per annum), with immediate effect.

The rate cut is over and above the rate reduction by the Bank, post the 100 basis points cut in the policy repo rate by the Reserve Bank of India (RBI).

The new rate beginning at 8.15 per cent per annum is applicable on loans for the purchase of a new car and is linked to a borrower's credit profile, the state-owned lender said.

The Bank has also reduced interest rates on Baroda Mortgage Loan (Loan Against Property) from 9.85 per cent per annum to 9.15 per cent* per annum with immediate effect.

Sanjay Mudaliar, Executive Director, Bank of Baroda said, 'The festive season is an auspicious time for new beginnings with many families looking to fulfil their aspirations of owning a new vehicle.'

'Bank of Baroda is pleased to introduce a special offer on our car loan rates that makes car ownership more accessible and affordable. In addition, our mortgage loan offering is now even more competitive giving a great opportunity to unlock higher value for property and customers can raise additional funds with reduction in interest rates from 55 bps to 300 bps depending on CIBIL score.'

Applicants can apply for a Bank of Baroda Car Loan digitally through the Bank's Digital Lending Platform - Baroda Digital Car Loan or by visiting the nearest bank branch.

The Bank also offers an attractive fixed rate of interest on Baroda Car Loans, linked to the Bank's 6-month MCLR, starting at 8.65 per cent* per annum. (ANI)