Bank of Baroda Car Loan

Updated: 06-02-2018 07:28:19 AM

About the Bank

An Indian state-owned banking and financial services company, Bank of Baroda is headquartered in Vadodara.

Established in 1908 as a smaller financial enterprise, BoB has slowly but steadily risen to become one of the leading international banks in the country. Bank of Baroda is the second largest bank of India, and offers a range of financial and banking services through its numerous branches and specialized subsidiaries. Since its inception, the institution has been efficiently catering to the clientele, and has become a harbinger of social change, with its innovative banking solutions and facilities.

The Bank of Baroda offers a diverse range of retail loans that are designed to meet your personal needs including amazing deals on car loans as well as a used car loan. These need-specific and unique loans are specially planned to enable the customers in changing their dreams to reality. The car loans offered by Bank of Baroda are designed to provide finance for the purchase of a car that suits your needs, status, and taste. It also offers the unique facility for an add-on along with the car loan provided by Bank of Baroda, for the installation of an LPG or CNG kit in your old (not older than 3 years) or new car. The car loan provided by Bank of Baroda offers interest rate concessions, flexible repayment options, as well as the lowest processing fee in the banking industry, making this one of the best car loans in India.

Before you apply for a Bank of Baroda car loan

There are a few things that an aspiring borrower should keep in mind before they apply for a car loan online. A car loan stays with you for a long time, so you should ensure that you are aware of the basics of any car loan.

Features of Bank of Baroda Car Loan

• Processing charges are applicable on Bank of Baroda car loans. These charges actually include documentation charges, document verification charges, inspection charges, and processing charges.
• The processing fee for Bank of Baroda car loan is reputed for being the lowest in the country, and is listed as follows:

• The processing fee will be charged at 0.50 % of the total loan amount, and the minimum amount in this case will be Rs. 2500 while the maximum being Rs.10,000. Service taxes are also liable to be levied on the processing fee. The service taxes however, will be collected separately.
• No foreclosure charges. This implies that if a borrower wishes to pre close their car loan, they can easily do so by simply paying off the remaining amount, as there are no foreclosure penalties levied by the bank.
• The maximum loan amount that is sanctioned for this car loan is up to Rs 100 lakh or up to 85% of the total new car on road price, 80% of total value of a used car. Applicable on all makes and models of cars, the car loan amount eligibility is based on the income of the applicant. Basically, the car loan amount eligibility for salaried individuals is calculated as twice the gross annual income of the applicant, while the loan amount that is sanctioned to working professionals or businessmen is calculated as either the average of the gross income of the last two years or just thrice the amount of the gross annual income (whichever is lower).
• The repayment tenure for a car loan from Bank of Baroda can be anytime up to 84 months for new cars and 36 months for used cars.
• Customers can also have the option to avail a unique add-on for the installation of CNG-LPG gas kits in their cars. The borrower can take up to 0.25 lakhs more under this cover and the repayment period for the car loan can be extended by up to 24 months.
• A car loan from Bank of Baroda has margins up to 15% for the new cars’ on road price for loan amounts up to Rs 15 lakh. Above this amount, the margin is 20% of the on road price of the car.
• Bank of Baroda charges heavy penalties to the borrowers who fail to make their monthly car loan payments on time, or if there is marked irregularity in their payments. For Bank of Baroda car loans, a penal interest of 2% over the regular rate of interest is applied on errant payments.
• Other miscellaneous charges that are levied on Bank of Baroda car loans like the stamp duty for documents, registration charges and other expenses are to be borne by the borrower.
• For a car loan, the bank conducts its own inspection of the vehicle to be bought. This inspection is carried out before as well as after the car loan has been sanctioned.
• Hypothecation of a new vehicle is required as security
• The borrowers also need to get their car insurance policy from the Bank of Baroda itself along with their car loan for their new car.
• After approval of the car loan, the car loan disbursals are done directly to the car dealer by issuing a demand draft of banker’s check.