Bank of Baroda Car Loan Review: Interest Rates @ 7.35%

Bank of Baroda Car Loan Review: Interest Rates @ 7.35%

Bank of Baroda provides large car loan amounts at very low interest rates.

Good for

  • CIBIL Score 701+
  • Financing luxury vehicles

Bad for

  • Low income earners
  • Used car loans

Editor's Rating

4.0/5.0

Bank of Baroda offers new car loan amounts up to Rs. 1 crore at low interest rates starting from 7.35%. With a 7-year loan tenure, no prepayment or foreclosure fees, and flexible eligibility criteria, BOB has one of the best new car loans for eligible borrowers. In order to avail a Bank of Baroda car loan, however, you must have a minimum CIBIL score of 701. ValueChampion recommends the BOB car loan to borrowers with a good repayment capacity and history.

Summary of Bank of Baroda Car Loan
Loan amounts up to Rs. 1 crore
New car loan interest rates from 7.35%
No used car loans available
NRIs and PIOs can apply

Table of Contents

What Makes Bank of Baroda Car Loans Stand Out to Borrowers

Bank of Baroda car loans stand out for their large loan amounts and very low interest rates. If you are seeking a more expensive car like a sports car or luxury vehicle, ValueChampion recommends that you consider Bank of Baroda for your car financing needs. However, it's important to keep in mind that while the BOB car loan has exceptional features, it is only available to high-earning borrowers or those with a minimum CIBIL score of 701.

Bank of Baroda only provides new car loans. If you are in need of a used car loan, read our guide on the Best Used Car Loans in India.

Bank of Baroda Car Loan Interest Rates

Bank of Baroda interest rates
Based on minimum rates for new car loans. Rates are subject to change.
Bank of Baroda interest rates
Based on minimum rates for new car loans. Rates are subject to change.

Bank of Baroda car loan interest rates are amongst the lowest rates in India. BOB car loans charge interest between 7.35% and 10.10%, ranking BOB as the second-lowest interest car loan amongst the lenders we analysed. Your final interest rate will be determined by your risk rating, with a minimum CIBIL score requirement of 701.

For borrowers who do not obtain credit insurance cover, a risk premium of 0.05% will be added to their final interest rate. Additionally, existing BOB home loan borrowers with a good credit history can receive a 0.25% concession from their BOB car loan interest rate.

Bank of Baroda Car Loan Eligibility

Consider this if you seek a large car loan with a low ROI

Interest Rates 7.35% - 10.10%
Processing Fee 0.50%, minimum RS. 2500, maximum Rs. 10000
Margin 90%
Loan Tenure 7 years

Bank of Baroda car loans are open to a variety of borrowers including salaried and self-employed applicants, agriculturalists and farmers, and non-resident Indians (NRI) and Persons of Indian Origin (PIO). Applicants between the ages of 21 and 70 years old (by loan maturity) are eligible for a BOB loan. Additionally, co-applicants can be as young as 18 year olds.

BOB car loans finance up to 90% of your desired vehicle's valuation, with a maximum loan amount of Rs. 1 crore. However, your car loan eligibility will be determined by your repayment capacity. In addition to your income, your CIBIL score will be a significant factor in determining your loan eligibility and interest rate. It's important to note that Bank of Baroda has a CIBIL score minimum cut off of 701.

Lastly, the Bank of Baroda car loan can be paid off over a 7-year period. The BOB loan tenure is standard for new cars and allows borrowers to pay lower EMIs over a longer period of time.

Bank of Baroda Car Loan Processing Fee and Other Charges

The Bank of Baroda car loan processing fee of 0.50% is comparably higher than other banks we reviewed, however, this is expected for large loans. Be prepared to pay a one-time instalment up to Rs. 10,000.

If you are seeking a small loan with a low processing fee, read our reviews of State Bank of India or Canara Bank.

That being said, it's still possible to save money with Bank of Baroda's zero foreclosure and prepayment penalty fees. Other lenders can charge up to 6.00% of the outstanding loan amount, which significantly drives up your total cost of borrowing. If you plan to pay down your car loan in advance, Bank of Baroda is a good option to consider.

Bank of Baroda Car Loan EMI Calculator

Use a car loan calculator to estimate your equated monthly instalments before applying. With large loans like the BOB car loan, it's important to make sure you can afford your EMIs before you send in your application.

By inputting your car loan interest rate, loan tenure, and loan amount, you can plan your repayments ahead of time. Click here to use the Bank of Baroda car loan calculator.

Bank of Baroda Car Loan EMI Repayment Schedule

To help you visualize how much you will need to pay each year of your loan tenure, our financial experts calculated an EMI repayment schedule, as shown below.

Stage of Loan TenureEMIInterest PaidPrincipal PaidOutstanding Balance
Year 1₹76,322₹348,645₹567,216₹4,432,784
Year 2₹76,322₹305,521₹610,340₹3,822,443

Year 3
₹76,322₹259,118₹656,743₹3,165,701
Year 4₹76,322₹209,188₹706,673₹2,459,027
Year 5₹76,322₹155,461₹760,400₹1,698,628
Year 6₹76,322₹97,650₹818,211₹880,417
Year 7₹76,322₹35,444₹880,417₹0
Based on an Rs. 50 lakh car loan over a 7 year tenure. Interest rate is set at 7.35% per annum, with no processing fee calculated in the outstanding balance.

Bank of Baroda Car Loan: Apply

You can begin your Bank of Baroda car loan application online. You will standard required documents for proof of identity, address and income. All borrowers must submit income tax returns (ITRs).

Bank of Baroda Car Loan Customer Care

If you have any queries about the Bank of Baroda car loan application process or would like to check the status of your application, contact BOB customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.