Bank of Baroda Car Loan

Headquartered in Vadodara in Gujarat, Bank of Baroda (also referred to as BoB) was founded in the year 1908 and is among the largest banks in the country today. It is also among the leading international banks in the country with over 100 offices and branches in international locations.

Among a diverse offering of retail loans, the Bank of Baroda car loan is available for both individuals and corporates at attractive interest rates. Depending on the requirements, the Bank of Baroda offers car loans for up to 1 crore with a maximum tenure of 7 years for repayment.

Features of the Bank of Baroda car loan

Along with higher loan amounts and extended loan tenures, the BoB car loan can finance up to 90% of the on-road price of the vehicle, which includes the registration costs, insurance, extended warranty, and the cost of any additional accessories. Another unique feature of this car loan is the financing of any LPG or CNG gas kit installation on your vehicle, thus encouraging customers to be more environment-conscious.

Other car loan-related features include the charging of interest on the reduced principal balance along with no penalties for any pre-payment or foreclosure of the loan.


Bank of Baroda car loans are available for any of the following entities:

  • Salaried employees
  • Business owners, professionals, and farmers
  • Business proprietors and partners, along with directors of private or public limited companies
  • Corporations including private and public enterprises, partnership firms, and trusts
  • Non-resident Indians

The following table shows the required eligibility for salaried and self-employed individuals.

  Salaried employees Self-employed individuals
Minimum age 21 21
Maximum age Loan tenure should not cross the retirement age of the applicant. Not more than 65 years
Minimum income Monthly income of 12,000/- or 15,000/- (only for residents of Mumbai, Delhi, Kolkata, Bangalore, or Chennai) Based on the latest Income tax returns
Professional tenure Minimum service tenure of 2 years, with at least 1 year of service with the current company At least 3 years in the current business or profession
Maximum loan amount ·       24 times the gross monthly income or GMI (if GMI < 50000)

·       30 times the GMI (if GMI is between 50000 and 1,50,000)

·       36 times the GMI (if GMI > 1,50,000)

4 times the gross annual income (average for previous 2 years)

Bank of Baroda Car Loan Interest Rate

Bank of Baroda offers car loans at highly competitive interest rates ranging from 9.65% to a maximum of 11.9%. The BoB car loan interest rate is calculated based on the base rate (or BR) plus 0.25%. The current base rate applicable from 1st July 2018 is 9.25%.

The available car loan tenure from Bank of Baroda is as follows:

  • 1 to 7 years for a new car
  • 1 to 3 years for an old car (with usage less than 3 years)

Bank of Baroda also levies service or processing charges of 0.5% (for a loan amount of more than 15 lakhs) with a maximum charge of 10,000/-, and 0.75% (for a loan amount less than 15 lakhs) with a maximum charge of 10,000/-.

As a customer, you desire to be charged a lower interest rate so as to reduce your EMI amount. Here are some factors that can impact the car loan interest rate charged to you by Bank of Baroda:

  • Monthly income, which can indicate your repayment capacity.
  • Loan tenure: Although car loans from BoB are available for up to 7 years, a shorter loan tenure can reduce your interest rate.
  • CIBIL score from the Credit Information Bureau of India, which indicates your current credit rating based on your outstanding loans, debts, and payment history. Borrowers with a high CIBIL score are offered loans at lower interest rates.
  • A high debt to income ratio, which indicates that your current income is being utilized to service previous loans and debts. This can attract higher interest rates, as the bank can view such borrowers as high-risk individuals.
  • Prior relationship with BOB meaning that you are an existing customer for the bank. A concession of 0.25% in interest rate is available for existing BoB home loan customers with a good repayment track record.

Calculating the EMI on the car loan

The Equated Monthly Instalment (or EMI) is the monthly amount taken from the car loan borrowers, which comprises the principal amount and the interest component. As a potential customer, you can use the following formula to calculate your EMI amount:

Where P is the principal loan amount, R is the applied rate of interest, and n is the total number of loan instalments based on the loan tenure.

As an example, for a loan amount of 10 lakhs with a tenure of 5 years and an interest rate of 10%, the EMI amount would work out to around 21,250/-.

Here are some of the factors that can impact your EMI amount:

  • Zero down payment on your car

Zero down payment can allow you to take home your new car without making any payment. However, this means that you need a higher car loan amount to be disbursed, which can increase your loan term and your interest component.

  • Loan term

Opting for a longer term on your car loan can lower your EMI. However, it also means that you are servicing the loan for a longer period, which can increase your overall repayment amount.

How to apply for the BoB car loan

Customers can apply for a car loan from Bank of Baroda through any of the following means:

  • Visiting the nearest Bank of Baroda branch and speaking to their car loan representative, who will provide you with the car loan details and help you to apply for the loan.
  • Apply for a car loan on the Bank of Baroda website or through any other third-party financial portal like Policy Bazaar.

Applicants need to submit the following supporting documents along with their car loan application:

  • Photo ID proof
  • Age and address proof
  • Bank statement for the previous 6 months
  • 3-month salary slips and Form 16 (for salaried employees)
  • Income tax returns and profit and loss statements for the last 3 years (only for self-employed applicants)