Car Loan Interest Rate
When you are looking to buy your dream car, whether for business or personal use, one key factor you are looking at is the rate of interest on a car loan. When you consider a car loan, you are likely to do your due homework in checking for affordability and eligibility. Bank of Baroda has one of the most competitive rates of interest on car loans.
The rate of interest you get on your car loan would depend on various factors like the amount of loan you are seeking, value and make of the car, your monthly income, your pre-existing loans, your expenses, your relationship with the bank and credit history. Bank of Baroda car loan interest rates start from 7.25% per annum.
Some of the key features about Bank of Baroda’s car loan and interest rates include
- The processing fee of Rs 1500/- + GST upto 31st Dec 2020.
- The loan tenure is up to -7- years for car Loans.
- The loan value is up to 90% of the on-road price of the car. The upper limit on the car loan amount for private use vehicles is Rs.100 lakh (Rs.1 crore).
- There are no prepayment charges
- The interest rate is based on RBI Repo rate + mark up+ S.P.+ applicable spread
- Daily reducing balance
- Credit score or CIBIL score, which should be within the defined range.
- Repayment period is up to 84 months, determined by EMI
- All cars financed by the bank are hypothecated -to Bank, which is removed on full and final payment of the loan.
- Profile of borrowers include: salaried employees, businessmen, professionals, corporates, NRIs and PIOs
- Age range for getting an auto loan is 21 to 70 years.
Is there a tax benefit on car loans?
You can actually save on taxes if you are a car loan borrower who is self-employed or the purpose of car’s use is business. But this does not apply to salaried employees since car is categorized as a luxury item.
If the car loan is used to purchase a car which is being used for business purposes, then this interest payment gets calculated as your business expense, which can be claimed as a deduction under Section 80C of Income Tax Act.
Assuming you are a self-employed individual who took out a car loan to buy a car for business purpose and your income is Rs.8 lakh, your interest rate expenses are Rs. 20,000, then you can claim a deduction of Rs.20,000 under Section 80C of Income Tax Act, such that your taxable income reduces to Rs.7.8 lakh.
What is a car loan eligibility calculator?
The quantum of finance you can get in the form of a car loan can be calculated by using the car loan eligibility calculator available online. Your car loan eligibility depends on your current income, value of the car you are looking to buy and assessment of your repayment capacity through current expenses or EMIs you are currently servicing. The car loan eligibility calculator helps you to arrive at an estimate of how much loan you can get, based on your inputs on your current income, value of the car, existing EMIs, age, location among other factors, though the factors taken into consideration for calculating car loan eligibility may vary from bank to bank.
Are there any prepayment charges for BOB’s auto loans?
You are allowed to prepay your loan without paying any prepayment charges.
What are the benefits of a car loan?
- Opt for a car loan from Bank of Baroda to benefit from quick processing, minimal documentation and speedy fund disbursal. Loan borrowers are not required to pay foreclosure charges or pre-payment penalty, nor do they need to pay advance EMIs.
- With higher limits on the car loan amount, you can avail loans for new cars for up to Rs.100 lakh (Rs.1 crore). So, if you have always had your eye on a luxury car, our loan can take you one step closer to your dream.
- Also, say goodbye to down payment worries, as you can get up to 90% financing on the car’s on-road price with Bank of Baroda’s auto loan.
- BOB offers attractive interest rates on loans to all customers based on their credit scores. Additionally, existing home loan borrowers with a good credit history enjoy a concession of 0.25% on their car loan interest rate.