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Bank of Baroda Car loan | Know Everything from Interest rates to Repayment

Bank of Baroda Car loan: Everyone wants to have a branded car and a house. BOB offers car loans on easy monthly installments, making it easy to buy a car now.

In the present time when a person has his own house, and then he has another wish to have his own car. In today’s time, the vehicle has become a hobby and a necessity. But due to the paucity of money, they cannot complete it. So you don’t need to worry much. You can fulfill your wish by taking a loan for a car if you want.

Earlier, buying a car used to be a big deal for anyone, as one had to spend a lump sum amount, but now it has become effortless due to the availability of Bank of Baroda car loans quickly.

Bank of Baroda offers both new and used car loans. The interest rates for new cars range between 7% – 9.75%, while for used vehicles, the interest rates range between 7.25% and 10%.

In this article, we will know the BOB Car loan, the interest rates, eligibility, documents, how we can apply for this loan, etc., so read this article till the end.

Key Highlights of BOB Car Loan

Loan Name Bank of Baroda Car loan
Lender Name Bank of Baroda(BOB)
Loan Tenure Up to 7 Years
Interest Rate Starting from 7% p.a.
Loan Amount Up to Rs. 1 Crore
Processing Charge Flat  Rs.1,500 (plus GST)
Foreclosure charges Nil
Application Mode Online /offline
Official website
  1. Like SBI, the Bank of Baroda also finances 90% of the car’s on-road.
  2. The existing home loan borrowers of the Bank of Baroda who have a good credit history are also offering a discount of 0.25% on the car loan’s interest rate.
  3. The maximum loan tenure is 7 years.
  4. Interest is calculated on the decreasing balance every day.
  5. A car loan has a processing fee of Rs.1,500 (plus GST).
  6. BOB Car loan interest rates range from 7% to 9.75% per annum.
  7. Maximum loan amount: Rs 1 crore.
  8. Lowest EMI of Rs. 1,509 per lakh.

Bank of Baroda Car Loan Eligibility

There are some main conditions for taking a car loan, this includes information like your salary, age, job, salary, etc. To take a car loan, you must have a job or a business to earn money.

  1. People in the age group of 21 to 67 years can apply for a car loan.
  2. Salaried employees
  3. Businessmen, professionals, and farmers
  4. Directors of private and public limited companies, proprietors of proprietorship firms, partners of partnership firms.
  5. Corporates
  6. NRIs/PIOs

Eligibility based on Repayment Capacity


Gross Monthly Income less than Rs. 50,000 60%
Gross Monthly Income Rs. 50,000 & above but less than Rs. 1,50,000 70%
Gross Monthly Income Rs. 1,50,000 and above 80%


Average annual income (last 2 years) less than Rs. 6 lakhs 60%
Average annual income (last 2 years) is Rs. 6 lakhs and above 80%

Documents required to get Bank of Baroda Car loan

To get a car loan, you will need the following necessary documents –

  • People in the age group of 21 to 67 years can apply for a car loan.
  • Bank account statement of last 6 months
  • Two passport size photographs
  • Proof of Income – Last 3 months’ salary slips, Form 16
  • Income statement of last 2 years for businessmen.
  • Proof of Identity – Any one of Passport, PAN Card, Voter ID Certificate, Driving License, etc.
  • Proof of Address – Any one of the Ration Card, Driving License, Voter ID Card, Passport, Telephone Bill, Electricity Bill, Life Insurance Policy, etc.
  • Business proof:  Registration Certificate, Service Tax Registration

How to apply for the Bank of Baroda Car loan?

If you fulfill all the conditions of this loan, you can apply for it both online and offline. The steps are given below.

BOB Car Loan Apply Online

  • To apply online, first, you have to visit the bank’s official website. Click here
  • On the website’s home page, Under the loan, the option of the Car loan will appear. Click on it.
  • On the next page, the list of all car loans will open in front of you.
  • Apply now button will appear in front of the loans you want to apply for. Click on it.
  • On the next page, the loan application form will open in front of you.
  • Enter the requested information in it and submit the form.
  • After this, the BOB bank’s employee will contact you and further process your loan application.

How to apply offline?

  • For this, you have to take all your documents to your nearest Bank of Baroda branch and contact the bank employee.
  • The bank employee will provide you with all the information related to the Bank of Baroda car loan.
  • After that, your documents will be verified.
  • Then you have to fill out a form, attach the documents with it, and submit it to the same bank.
  • This way, your offline application will be processed.

Calculate Car loan EMI of Bank of Baroda

2 years 3 years 5 years
Bank of Baroda EMI for a loan amount ₹ 1 Lakh at 7.00% RS. 4,477 RS. 3,088 RS. 1,980
The total amount you pay back to the bank including principal and interest RS. 1,07,454 RS. 1,11,158 RS. 1,18,807
The interest you have to pay over loan tenure RS. 7,454 RS. 11,158 RS. 18,807

Main Benefits of the BOB Car Loan

The key benefits of the car loan provided by Bank of Baroda are mentioned below:

  • Bob car loan processing time is quick
  • They require Minimal documentation
  • No foreclosure charges
  • Lowest down payment
  • Attractive interest rates

Important tips while taking a car loan

While taking your car loan, you need to keep some things in mind. Through which you can take a cheap car loan.

Before taking a car loan, you should discuss the car’s value at several places. Dealers often cheat people in a hurry.

Car dealers get a lot of commission, and you can pressure the car dealer to give you some discount.

If any dealer is not ready to give you a cash discount. So try to get as many car accessories as possible with the car, such as seat cover, music system, etc.

Where people usually work. Get insurance from there. That insurance may cost you a bit if you get insurance from a car dealer. Therefore, you should get insurance online or from some other place to save your money.

While taking a car loan, keep in mind that try to reduce the cost of the car. Try to get as many goods and services as possible for free.

Try to bring down the interest rate. Try to reduce processing fees, prepayment charges, etc.

Comparison for Car Loan Interest Rates of Top Banks

Name of the Bank Interest Rate (p.a.)
State Bank of India 7.70% onwards
HDFC Bank 7.95% onwards (Rack Interest)
Axis Bank 8.65% p.a. onwards
ICICI Bank 7.90% p.a. onwards
Canara Bank 7.30% p.a. onwards
Federal Bank of India 8.50% p.a. onwards
Union Bank of India 7.25% p.a. onwards


1. What is a car loan?

When taking a loan to buy a car it is called a car loan. You can take a loan for both new and vehicles. But taking a loan for a new car is easier and cheaper, whereas taking a loan for a used car is difficult and costly.

2. How much loan amount can I get for a car?

This question must arise in your mind when talking about a car loan. You can get a car loan ranging from 80 to 90% of the vehicle’s value to buy a car. The point to note here is this. You can get a loan up to 80- 90% of the ex-showroom price only. The vehicle is provided to you at an on-road price.

You do not get any loan for car registration, insurance, taxes, etc. Along with this, your car loan is also determined based on your ability to repay the loan.

3. Where can you take a car loan?

Nowadays, almost all banks offer car loans, and the central banks are the State Bank of India, ICICI Bank, HDFC Bank. Along with this, many NBFCs also provide car loans. But if you take a loan from BOB, you will definitely get some extra benefits.

4. What is the interest rate on a car loan?

The loan is available for you at both fixed interest rates and floating interest rates. Car loan interest rates often fluctuate, and there is a difference in the interest rate according to the price of the car, model, and tenure of the loan. You can check the interest rates offered by various banks on their car loans on their official website.

5. How to get a cheap car loan?

Talking about SBI Car Loan, you get a car loan between 7.70% to 9.20% interest. But if you want to take a cheap car loan. So you should contact 2, 3 finance companies and banks to get more information about a car loan from them. And then you should take a loan for your car from where you find it cheaper.

6. For how long can you get a car loan?

While thinking of a car loan, the question that often comes to mind is what tenure you can get a car loan. Talk about the car loan duration, then you can get a loan for the car for 2 to 5 years. Some banks also provide loans for up to 7 years.

7. Can I sell my car before paying the car loan?

Many times such a situation arises, we also have to sell our valuable things. This question is also occurring in your mind. So here we tell you. You cannot sell your car before paying off the car loan, and you can sell your vehicle only after paying off the car loan. While taking a car loan, the vehicle is hypothecated in the bank’s name.

8. Can I take a loan for a used car?

Whether he can also take a loan to buy a used car or not. So here I want to tell you that now many banks have started providing loans to purchase used vehicles. The loan is also offered to you on buying a 5-year-old car from a bank like BOB. The loan interest rate on purchasing a used car will be higher than buying a new car.

9. Is there a tax exemption on car loan payments?

Often this question also arises in our minds. Talking about car loans, you do not benefit from any type of tax benefit on paying the car loan.

10. How do I remove the hypothecation from the registration certificate once I have repaid the loan in full?

Once your car loan is closed, Axis Bank will provide you with the following documents to remove hypothecation from your certificate of registration:

  1. No Objection Certificate (NOC) will be given to your Regional Transport Office (RTO) and your auto insurance company.
  2. No Objection Certificate (NOC) issued by BOB Bank.
  3. (Original Form 35)

These documents have to be submitted to your local RTO and the fee for removing hypothecation.

11. How can I foreclose my car loan? Will there be any charge for a foreclosure?

Once all dues are paid, please submit a foreclosure request to the Loan Centre, and the bank will start processing your request. There is no charge for foreclosure.

12. What security and collateral do I need to provide when I get a car loan from BOB Bank?

Your car is used as collateral and hypothecated to BOB Bank for the loan tenure. In addition, no other security or collateral is required for a car loan.

13. What is the minimum amount of car loan that I can get?

At BOB Bank, we provide car loans as low as Rs 1 lakh. Some of the factors we consider while deciding on the loan amount are:

  1. Your requirement and eligibility
  2. Your income
  3. Your repayment capacity

14. What is a Hypothecation letter?

When you buy a car by taking a loan, some documents or property mortgage have to be done. Due to this, the lending company or bank has security, and they have full rights that if you do not repay the car loan installments or car loan amount on time, they can seize the mortgaged property kept by you.

Friends, a hypothecation letter is an important part of the car registration process. Once you repay the loan amount in full, you can later remove the hypothecation of the lending company/bank from the registration paper.

To remove the hypothecation letter, you have to go to the transport office with no objection certificate(NOC) and car insurance paper and address proof at its respective registration transport office.

The most important thing that you have to keep in mind is getting the NOC letter from the car loan company. After that, you should give the NOC to the insurance company to get the insurance paper issued in the name of the new car owner.


This article has provided you with complete information about the Bank of Baroda Car Loan.

Whether you are buying a new or old car in India, you can take a loan from the Bank of Baroda bank.

The bank offers many types of car loans for which you can apply. If you have any queries regarding this, you can contact Bob Customer Care at Toll-Free Number: 1800 258 44 551800 102 44 55.

I hope this complete information about the Bank of Baroda car loan at low-interest rates will definitely help you somewhere. Also, if you have any kind of question, comment in the comment box below. We will answer your questions soon. Thank you

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By Kapil Garg

I am a professional Loan and Insurance advisor with an approved license helping people with my services like Loans, Retirement Planning, Investment Planning.

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