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Car Loan

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.

Eligibility for Bank of Baroda car loan

Requirements for Bank of Baroda car loan-According to employment criteria for applying for the car loan ,corporate companies, High Net Worth individuals, Government employees, proprietors or partners in firms, salaried professionals, and businessmen, are eligible for a Bank of Baroda car loan. Bank of Baroda car loan eligibility varies with the various employment sectors.


Bank of Baroda car loan eligibility for salaried individuals
 

  • Minimum age should be 21 years
  • Maximum age: The present age + the tenure of the applied loan should not cross the retirement age of the applicant
  • Minimum income should be Rs. 12,000/- per month or Rs. 15,000/- in Mumbai, Cochin, Delhi, Calcutta, Bangalore, Chennai, Ahmedabad
  • Should have been working for a minimum of two years, with at least one year with the present employer

Bank of Baroda car loan eligibility for self-employed individuals
 

  • Minimum age should be 21 years
  • Maximum age should be no more than 65 years
  • Income eligibility will be based on the latest ITR
  • Should have been in the same field of business for at least three years

Applicable Interest Rates

  • Interest rate: 9.65%- 11.40%
  • Service Charges:
  • For loans up to Rs.15 lakh: 0.75% (Max. Rs.10000)
  • For loans over Rs.15 lakh: 0.50% (Min. Rs.10000, No maximum limit)

Bank of Baroda car loan details
 

Bank of Baroda car loan interest rates

From 9.65 % to 11.90 %

Service Charges or Processing Fees

For loans up to Rs.15 lakh: 0.75 % of the loan amount. Maximum up to Rs.10,000

For loans over Rs.15 lakh: 0.50 % of the loan amount. Minimum amount Rs.10,000 and no maximum limit)

Loan tenure

1 year to 7 years for a Bank of Baroda car loan for a new car

1 year to 3 years for a used car loan (not older than 3 years)

Pre closure charges

NIL

Documents for Bank of Baroda Car Loan

The documents for Bank of Baroda car loan that need to be submitted for applying for the Bank of Baroda car loan are:
 

  • Photo ID
  • Age proof
  • Signed and filled Bank of Baroda car loan application form
  • Proof of residence
  • Bank statements of the last 6 months
  • Income Proof

Income proofs required to prove eligibility for Bank of Baroda plans:
 

For salaried applicants:
 

  • Salary slips of last 3 months
  • Form 16 / Income Tax Returns

For self-employed applicants:
 

  • Income Tax Returns with a computation of Income for the last 3 years
  • Audited Balance Sheet and Profit & Loss Account for last 3 years

You can easily Check Your Car Loan Eligibility at PaisaBazaar before you apply for a Bank of Baroda car loan to ensure that you fulfill the criteria that is required, and your car loan application can be processed in a hassle free manner.


How it works
 

  • Step 1: You need to select the type of car that you are planning to buy – New or Used
  • Step 2: Select or enter your city of residence
  • Step 3: Select or enter the make and the model (also the variant of that particular model in the applicable cases) of the car that you are planning to buy
  • Step 4: Enter the details about when you plan to buy the car
  • Step 5: Next, select the amount of money that you would like to borrow
  • Step 6: Select the loan tenure for the Bank of Baroda car loan that you wish to apply for
  • Step: Select your form of employment. Afterwards, salaried individuals need to fill in the name of their employer, while the self-employed professionals and businessmen will be required to select their type of profession
  • Step 7: Enter gross annual income
  • Step 8: Enter amount of EMI that you are already paying at present
  • Step 9: Select the bank that you have a bank account with
  • Step 10: Enter your personal details like your name, gender, date of birth, email id, mobile number, etc. and click on ‘View all Offers’ to see the loans that you are eligible for.

The car loan EMI

The equated monthly installment, also known as the EMI, is probably one of the most important aspects of car loans. The Bank of Baroda car loan interest rate does play a role in the car loan application decision, but the EMI is what actually cements the decision. It is very important for one to calculate EMI for Bank of Baroda car loans, as it is this very amount that a person has to pay for a long period of time. The EMI depends on a number of factors like the total amount that has been loaned to the borrower, the Bank of Baroda car loan interest rate that has been offered, and the loan tenure.


You can calculate the EMI that is applicable for your car loan by using the following formula:
 

EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]


P = Principal loan amount


R = Bank of Baroda car loan interest rate


N = Number of installments applicable (or the loan tenure, in months)


As is visible, the process is a time consuming and complicated method that is also prone to human errors. An easier way of achieving the desired result is by utilizing a car loan EMI calculator. The PaisaBazaar Bank of Baroda car loan EMI calculator can assist you in the calculation of the applicable EMI amount for your car loan. To use the Bank of Baroda car loan EMI calculator, you will be required to enter the total loan amount, the loan tenure, and the interest rate applicable, information that is easily available to be furnished, and the handy tool will come up with the EMI that is liable to be paid for that loan option.


The car loan EMI
 

Smaller EMIs will result in a longer tenure for a car loan, and subsequently, more interest paid. So even if you see an EMI option that on the look of it seems completely reasonable, the borrower should make sure that they look at the big picture and that they consider all the factors that affect the final car loan EMI.
 

  • No Down Payment

A no down payment sounds like the best option there is, you get to take home a new car, without having to pay a penny for it (yet). But the fact is that the payments will come albeit later. If you do not pay down payment, you will be borrowing a larger amount from the bank, and a larger amount means a longer term, and both of them result in car loan interest rates that need to be paid back.
 

  • Emotion over logic

Getting pre-approved car loans might help in clouding your vision. You might be tempted to buy a slightly better and slightly more expensive car instead of the one you had decided. After all, a bit more in EMI payments can hardly hurt right? Not true, just a little increase in the car loan EMI can in the long run place a rather large strain on you financially. So before applying for the Bank of Baroda car loan, make sure that you budget properly and that you stick to it.
 

  • The Loan Term

Longer terms, as mentioned above, obviously mean a lower car loan EMI and an increased eligibility for Bank of Baroda car loan, but it also means more money paid out as the Bank of Baroda car loan interest rate. Also, existing EMIs also lower your eligibility if you wish to apply for other loans in the future. So whenever you apply for a Bank of Baroda car loan, make sure that you opt for the shortest term that is possible, without causing a financial strain on yourself.
 

  • Using the Bank of Baroda car loan EMI calculator

Before you apply for a Bank of Baroda car loan online, make sure that you utilize the car loan EMI calculator to obtain a clear picture of the amount that you will be liable to pay each month for repaying your car loan. No matter why you want to use it, whether to conduct research for future financial plans, or to calculate EMIs before applying for a loan, or even for curiosity sake, the PaisaBazaar EMI calculator is freely available for everyone to use. Just visit the PaisaBazaar website, and you can find the EMI calculator in the tab for “Tools”.


Using the PaisaBazaar EMI calculator for a Bank of Baroda car loan


Step 1:


In the first section of the calculator, you need to enter the principal amount of the car loan that you would like to borrow from the Bank of Baroda.


Step 2:


In the second section of the calculator, enter the interest rate that has been offered to you for the car loan.


Step 3:


In the third part, you need to enter the loan tenure that you would like opt for making the repayments. The loan tenure with Bank of Baroda can vary from 1 year to 7 years for new cars and 1 year to 3 year for buying a used car that is no older than 3 years.


Step 4:


As the required details are entered, the amount that is liable to be paid as EMI will appear on the right side of the calculator.


Another aspect to assist you is that you can simply change the values in any or all the sections and the changed EMI will be visible immediately.


Important


A car loan is a financial commitment that will stay with you for years. So before you decide, make sure that you take the time to look at the long term effects of the loan. There are a number of factors that are involved in the entire loan process and each of them needs to be factored into the equation to make sure that the ultimate decision that you take is made after due consideration and that there will be no surprises in the offing. Following are few of these factors that require your time to be well considered and broken down before you can apply for your car loan.
 

  • Prepayment Charges
  • Interest Rate
  • Processing Fees
  • Tenure
  • Down Payment
  • Car loan EMI

Benefits of applying for a Bank of Baroda car loan

When you apply for a Bank of Baroda car loan, you can avail the following advantages:
 

  • Loans available for amounts up to Rs 100 Lakh for a car of any make and model.
  • Add on cover for LPG –CNG Gas Kit.
  • A car loan from Bank of Baroda can be used for the purchase of new cars as well as a used car loan (No more than 3 years old).
  • The bank of Baroda car finance plans offer repayment periods of up to 7 years.
  • The Bank of Baroda car loan interest rates are kept very low.
  • The processing fee for Bank of Baroda car loan is also very low.
  • There are no prepayment charges levied on Bank of Baroda car finance plans.
  • This car loan offers a concession in the car loan interest rates to the borrowers who offer the bank a minimum 50 % in liquid security as collateral for availing car loan. This concession is subject to the condition that the minimum applicable car loan interest rates will be the Base Rate.
  • Bank of Baroda car loan interest rates can be further slashed with an additional concession of 0.25 % in case the applicant is an existing Home Loan borrower from Bank of Baroda and has a good track record of repayments made. This concession too is subject to the condition that the minimum applicable car loan interest rates will be the applicable MCLR.

How to apply for a Bank of Baroda car loan
 

There are a number of ways to avail a car loan by Bank of Baroda. These are:
 

  • Visit the nearest Bank of Baroda Branch to find out all about the offered car loans for new cars or pre-owned car loan, whichever you prefer, and apply directly at the branch. The bank will disburse car loans, after approval, directly to the car dealer.
  • People who wish to apply for a Bank of Baroda car loan online have a number of options, designed to ensure a process that is hassle free and requires minimal efforts.
  • You can visit the Bank of Baroda website and apply for a car loan from there.
  • You can use the Paisa Bazaar portal to apply for a Bank of Baroda car loan online

People, who already have a Bank of Baroda bank account and have a good transaction history with the bank, will find much easier approvals for their car loan.

Bank of Baroda Car Loan FAQs

1. What are the documents required for applying for a Bank of Baroda Car loan?


A. The documents that need to be submitted for a car loan from Bank of Baroda are:
 

  • Photo ID
  • Age proof
  • Signed and filled application form
  • Proof of residence
  • Bank statements of the last 6 months
  • For salaried applicants:
  • Salary slips of last 3 months
  • Form 16 / Income Tax Returns
  • For self-employed applicants:
  • Income Tax Returns with a computation of Income for the last 3 years
  • Audited Balance Sheet and Profit & Loss Account for last 3 years

2. Is it possible to take a Bank of Baroda car loan for buying a second-hand car?


A. Yes, one can easily apply for a Bank of Baroda car loan for buying a second hand car. However, some of the features of the loan will vary in case of a used car. These features include those like the maximum loan tenure, maximum loan amount, etc.


3. What makes of cars can I buy with this car loan?


A. Car loans provided by Bank of Baroda can be used to buy any make and model of cars available in India, including passenger cars, SUVs and MUVs that are bought for personal use.


4. What is the maximum tenure of a car loan from Bank of Baroda?


A. For a loan taken for a new car, the maximum loan tenure offered by Bank of Baroda is for 84 months, while the maximum tenure offered for a loan for buying a used car is 36 months.


5. What percent of the total car value can I get financed from Bank of Baroda?


A. For a new car, up to 85% of the on road price of the car can be covered with a car loan from Bank of Baroda. While for a used car, up to 80% of the total car value can be covered by the loan.

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