Bank of Baroda Car loan
If you are looking for a Bank of Baroda Car Loan or any other Car loan you are at the right place. Get all the information related to Bank of Baroda car loan along with vital information that no one tells you.
With a Bank of Baroda Car loan, you may have the car of your dream. Find a car loan that suits your needs. With BOB finance, you can purchase a hatchback, sedan, MUV, SUV, sports vehicle, or luxury vehicle. Our automobile loans are available to salaried employees, business persons, professionals, businesses, as well as NRIs and PIOs.
Bank of Baroda offers low interest rates on auto loans with up to 90% financing, making our loans a great choice for purchasing a new vehicle. You may check available car loan offers from Bank of Baroda Net Banking or Bobibanking as well.
Make a missed call to 846 700 1133 or
send an SMS to 842 200 9988 with the phrase AL space > Name.
Why Bank of Baroda Car loan?
With Bank of Baroda now offering car loans with loan tenures up to 7 years, you may get monthly EMIs as low as 1,509 per lakh.
Bank of Baroda presently has the lowest auto loan interest rate of 7.00 percent, with an EMI per 1 lakh loan amount of 4,477 for a two-year loan and 1,980 for a five-year loan.
Interest and principal repayment are also included in the EMI. Though the EMI amount remains constant, the principle component continues to rise while the interest component continues to decline.
Bank of Baroda Sample Car Loan Calculation
Benefits of Car Loan From Bank of Baroda:
- 90 percent financing is possible.
- Interest rates that are appealing
- Increased loan amount
- There is very little documentation.
- There are no foreclosure costs.
- Processing time is short.
- Quick disbursement of funds
Bank of Baroda provides vehicle loan financing up to 90% of the on-road price of the automobile you want to buy. However, If you are looking for private use cars, the total maximum loan amount may be approved is Rs. 100 lakhs (i.e. Rs. 1 crore).
- The interest rate on car loans is subjective and majorly dependent on the applicant’s credit score and financial history or CIBIL Bureau score and is computed on the daily declining balance. For the approval of a BOB car loan requires a credit score of 701 and above.
- The EMI amount that shall determine the payback duration or complete tenure for car/auto loans, which can be stretched up to 84 months.
- All cars financed through Bank of Baroda car loans are hypothecated with the Bank as collateral. Once the borrower has paid off the whole debt, the hypothecation is eliminated by taking an NOC from the Bank.
- Auto loans from Bank of Baroda is quite easy to get and are available to all salaried employees, business people, professionals, corporates, NRIs, and PIOs, (subject to approval). However, the borrower’s minimum age should be 21 years old, with a maximum age of 70 years after the payback period has ended.
- Bank of Baroda car loan processing fees are low, and are usually computed as a fixed rate of Rs. 1500 + GST.
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Bank of Baroda Car Loan Eligibility
- Salaried personnel
- Entrepreneurs, professionals, and farmers
- Directors of private and public limited businesses, proprietors of sole proprietorships, and partnership partners.
- NRIs/PIOs (partnerships, private limited companies, public limited companies, and trusts)
For the purchase of new passenger automobiles, multi-utility vehicles (MUVs), sport utility vehicles (SUVs), and other vehicles for personal use.
Vehicle loan from Bank of Baroda subject to Repayment Capacity & Eligibility.
The total deductions, including the suggested EMI, should not be more than.
- Gross monthly income that is less than Rupees 50,000 – 60%
- Monthly Gross Income of 50,000 rupees or more but less than 1,50,000 rupees – 70%
- Monthly Gross Income of Rs. 1,50,000 or more – 80%
- In the preceding two years, annual income was less than Rs. 6 lakhs – 60%
- The average yearly salary in the previous two years has been Rs. 6 lakhs or more – an 80 percent increase.
Getting a Bank of Baroda Car Loan
Having a car is no longer a luxury; it is a need to be able to go from one location to another without having to wait for crowded public transportation or to be able to go anywhere you want, whenever you want, without regard for time constraints.
Bank of Baroda offers auto loans at some of the lowest rates in the market, with flexible terms and simple installments, so you may get your ideal car without feeling the sting of a big-ticket purchase.
The procedure of obtaining a car loan with Bank of Baroda is quite straightforward.
Documents Required to Apply for a car loan at Bank of Baroda
All you have to do now is ensure that you have the necessary documents on hand:
- Photo ID with evidence of age (like, PAN card, passport, driving license).
- Three passport-sized photos and a signed application form
- Proof of residency, such as a valid passport, voter ID card, driver’s license, postpaid utility bill (gas and electricity), updated passbook or bank account statement, and notarized registered rent agreement.
- The latest & most recent last six-month bank statement.
- If the candidate is a paid employee.
– Pay slips and receipts from the previous three months.
– Income Tax Returns last two years or (Form 16).
If the applicant is self-employed.
– Income computation for the previous two years using the balance sheet and profit and loss account.
– Income Tax Returns (applicants’ last two years), 26 AS, Traces.
– Business evidence, such as a Trade license, a registration certificate, or a service tax registration, GST etc.
– Income Tax Challans/TDS Certificate (Form 16A)/Form 26 AS for income reported in ITR.
Bank of Baroda Car Loan interest rate
Interest rates range from BRLLR + SP + 0.25 percent to BRLLR + SP + 3.25 % (percent) (subjective to the applicant’s credit risk rating.)
Customers who do not get credit insurance coverage will be charged a risk premium of 0.05 percent, as per current rules.
The interest rate.
The rate of interest on a car loan is determined by the applicant’s or CIBIL Co-applicant’s Bureau score. The minimum approval score is 701. The higher the score the lower the interest rate may be offered.
Existing house loan customers who maintain a solid track record of repayment without any late payments will receive a 0.25 percent rate reduction on vehicle loans.
Rs. 1500 (one-time)
Car loan from Bank of Baroda Maximum Loan Amount.
The total amount is (Rs. 100 lakh) i.e 1 crore (for all categories).
Period of Repayment
84 months is the maximum length of time allowed.
10% on the vehicle’s “on the road” pricing.
Validation of Bureau Scores
As per the bank’s requirements, a minimum Bureau score is required.
Borrower is 21 years old, and the co-applicant is 18 years old.
The applicant’s/co-applicant’s/age guarantor’s plus the payback duration cannot exceed 70 years.
Hypothecation of a financed car.
The car is covered by comprehensive insurance with a bank clause.
There is none(Nil).
Tips for determining the appropriate EMI amount.
Determine the amount you need to borrow: Before asking a bank for a loan, you must first determine the amount of money you require. After you’ve taken into consideration your own available cash, set a limit on how much you may borrow. Also, based on your ability to service the EMI, attempt to choose the shortest loan term possible, as long-term loans result in a significant interest outlay.
Examine your present commitments: Before taking out a loan, it’s a good idea to assess your current monthly costs, including any EMI obligations you may have on existing loans. After taking into consideration your other commitments, the evaluation will assist you determine the amount of EMI you can easily pay. Once you’ve determined the EMI you can afford, you may choose the appropriate loan term.
Sample Calculation for Rs.1 Lakh Loan Amount
Examine your eligibility for a Bank of Baroda vehicle loan:
Your eligibility is determined by a calculation of your monthly income and payback ability. Bank of Baroda offers an LTV of up to 90% of the on-road price and requires the borrower to pay the remaining worth of the property with his or her own funds. Bank of Baroda expects its borrowers to give margin money for the lowest LTV. If this margin payment exceeds your projected available funds, you may need to seek for greater LTV loans, which may come with higher interest rates and, as a result, higher EMIs.
Multiplier-based loan amount eligibility — Bank of Baroda determines your loan amount eligibility by multiplying your net take-home salary by a multiplier. Banks use this approach to determine loan eligibility since it is the easiest. In general, it is 2.5 to 3 times a salaried individual’s yearly pay, and 6 times a self-employed professional’s annual revenue.
The multiplier is determined by your employer’s internal classification by the bank, which is based on its reputation, stability, size, and turnover growth.
FOIR-based loan amount eligibility — Based on your current income and other monthly costs, Bank of Baroda will calculate your Fixed Income to Obligations Ratio (FOIR) to determine the highest EMI you can service.
To estimate your monthly expenditures, the bank multiplies your income by a particular ratio, then adds your other EMI commitments to determine your fixed obligations. Your FOIR is computed by dividing your fixed income by your calculated fixed liabilities.
In most cases, banks lend up to a FOIR of 0.50. The bank will also estimate the maximum amount of EMI you can service as a borrower based on the FOIR.
It’s possible that Bank of Baroda’s judgment differs from yours.
If there are any discrepancies in your evaluation, you may need to alter your loan amount needed.
You might potentially enhance your eligibility by repaying any outstanding short-term loans.
Bank of Baroda Car Loan- Things you should Know
- Loans are offered to salaried and self-employed borrowers between the ages of 21 and 70, with a maximum loan term of seven years.
- Interest rates ranging from 7.00 percent to 12.00 percent.
- The cheapest EMI is 1,509 per lakh.
- Fees for processing: 0.75 percent of the loan amount.
- A minimum of 2,500 and a maximum of 10,000 are required.
- The EMI is calculated using a combination of loan amount, interest rate, and loan tenure using the Bank of Baroda car loan calculator.
- EMI – In the event of a prepayment, the EMI will vary.
- There is a minor penalty if you pay off your car loan early.
- In Bank of Baroda, there is no such thing as a prepayment.
- The outstanding sum on your automobile loan is reduced when you prepay.
You have two choices with Bank of Baroda:
Reduce your loan term while maintaining the same EMI on your vehicle loan: This option allows you to pay off your loan sooner and avoid the interest costs connected with the remaining term. This is appropriate for borrowers who believe they have sufficient income to continue paying their EMIs at the same level.
Reduce your monthly EMI while keeping your loan term the same: This option allows you to lower your monthly EMI and so improve the amount of monthly surplus available for other uses.
This is a good option for borrowers who expect greater monthly personal costs and, as a result, wish to lower their monthly EMI payments.
Formula for Bank of Baroda Car Loan Calculator
Below is the break up of the Loan Formula:
- The letter P means or stands for the primary amount you wish to apply for.
- r is the monthly interest rate, which is computed as (12*100)/rate of yearly income.
- n denotes the loan’s tenure duration in months.
- The monthly payment, we all know as an EMI, is denoted by the letter E.
- The following is an example of how the EMI on a Bank of Baroda car loan is calculated:
- Let’s assume you take out a Rs.3,50,000 automobile loan with a ten percent interest rate that you’ll pay back over five years (or 60 months).
- After following the aforementioned method, your monthly payments for this loan would be Rs.7,436.5.
In the formula above,
- P stands for the loan amount.
This should be 90% of the on-road cost.
- n is the number of months spent on the job.
This might take up to seven years for Bank of Baroda.
- r is the offered annual interest rate.
The current Bank of Baroda auto loan interest rate is 7.00 percent.
Bank of Baroda car loan application form
You may not require an application form for applying a car loan at Bank of Baroda instead you can Apply Online from the link mentioned below.
Apply online for Bank of Baroda Car Loan
Car Loan from Bank of Baroda Most Commonly Asked Questions (FAQs)
Where can I get a Bank of Baroda car loan application form?
The Bank of Baroda Car Loan application form may be found in the ‘Downloads’ section of the bank’s official website. You might just pick up an application form at one of the bank’s local branch locations.
Is it possible to receive an update on the progress of my Bank of Baroda auto loan?
Yes, you can keep track of your Bank of Baroda vehicle loan’s progress. If you applied for a vehicle loan through the bank’s official portal, you can log in to see how far your loan has progressed. In addition, the bank will give you regular email and SMS updates on the status of your auto loan to the email address and phone number you provided.
Is it possible to receive a car loan from Bank of Baroda just for the purpose of installing a CNG-LPG gas kit?
Yes, Bank of Baroda will grant a loan of up to 0.25 lakhs for the installation of CNG-LPG gas kits.
What options do customers have for getting more information about Bank of Baroda vehicle loans through customer service?
Customers can reach our friendly customer support help desk by dialing one of the toll-free numbers below. They are available 24 hours a day, 7 days a week to answer any inquiries they may have about Bank of Baroda vehicle loans.
- 1800 22 33 44.
- 1800 258 44 55.
- 1800 102 44 55.
On the Bank of Baroda website, you may also make product queries and complaints.
Is it feasible to receive a used auto loan?
Yes, Bank of Baroda provides used car loans. The vehicle must be no more than three years old.
What is the lowest EMI per lakh on a car loan offered by Bank of Baroda?
The lowest EMI of 1,591 rupees per lakh is offered by Bank of Baroda, which offers a car loan at a rate of 7.00 percent.
Why should I calculate the EMI of a Bank of Baroda loan before applying for one?
Before taking out a vehicle loan, it is a good idea to calculate the EMI. There are numerous advantages to calculating your Bank of Baroda home loan EMI, as detailed below: If the EMI exceeds your monthly budget, you may apply for a smaller loan amount that matches your monthly budget and makes the EMI more manageable.
Is it possible to pay off my Bank of Baroda car loan sooner than expected?
Bank of Baroda provides you with the option of making a prepayment at no cost.
Is there a processing fee for a Bank of Baroda vehicle loan?
The processing cost for a Bank of Baroda car loan is 0.75 percent of the loan amount, with a minimum of 2,500 and a maximum of 10,000.
Will I be able to receive a vehicle loan from Bank of Baroda despite my poor credit score?
No, in order to get a loan from Bank of Baroda, you must have an excellent credit score of 700 or above.
Most banks will not provide you a loan if your credit score is poor.
How does one go about repaying a car loan?
A automobile loan is repaid through the customer’s bank account in the form of an EMI (Equated Monthly Installment). When the loan is disbursed, the customer must provide a few post-dated checks and sign an ECS mandate in the bank’s favor.
Is it possible to apply for a car loan with a co-applicant at Bank of Baroda?
Yes, you may obtain a vehicle loan from Bank of Baroda with a co-applicant, which will enhance your car loan eligibility because the co-income applicant’s is also considered.
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