New Delhi, Aug 28: To commemorate the start of the festive season, the Bank of Baroda has slashed its interest rates on auto loans, the public sector lender said on Thursday.

Interest rates on floating auto loans now start at 8.15 per cent per annum (previously 8.40 per cent per annum), effective immediately, the bank stated.

The bank's rate cut comes after the Reserve Bank of India (RBI) lowered its policy repo rate by 100 basis points.

According to the lender, the new rate, which begins at 8.15 per cent p.a. and is determined by the borrower's credit profile, applies to loans for the purchase of a new automobile.

The bank has also lowered interest rates on Baroda Mortgage Loans (Loan Against Property) from 9.85 per cent p.a. to 9.15 per cent p.a., with immediate effect.

"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," Bank of Baroda Executive Director Sanjay Mudaliar said.

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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 a reduction in interest rates from 55 bps to 300 bps, depending on CIBIL score, he added.

Applicants can submit an online application for a Bank of Baroda auto loan through the bank's digital lending platform, Baroda Digital Car Loan, or by going to the closest bank branch.

Additionally, the bank provides Baroda Car Loans with an alluring fixed rate of interest that starts at 8.65 per cent and is based on the bank's 6-month MCLR.

Banks, e-commerce sites, manufacturers and brands are preparing for the upcoming festive season that would start from the Navratri. As the GST rationalisation is ahead, they are anticipating a significant surge in their business. (IANS)

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