Bank of Baroda (BoB) on Monday announced a reduction in car loan rates.

The interest on floating rate car loans has been cut to 8.75 per cent from the earlier 9.40 per cent in a special limited period offer. This will begin on February 26 and last till March 31. The new rate beginning at 8.75 per cent is applicable on the purchase of a new car and is linked to a borrower’s credit profile.

BoB said it is also offering an attractive fixed rate of interest on its car loans, beginning at 8.85 per cent.

BoB is also offering borrowers zero prepayment charges on the floating option and a concession in processing charges on both fixed and floating rate options. BoB added that the interest on its car loans (both fixed and floating) is calculated on the daily reducing balance method, making it more affordable.

Further, the bank also offers an extended repayment period of up to 84 months.

“We are continuing to see strong demand for car ownership with passenger vehicle sales peaking in January 2024,” Sanjay Mudaliar, executive director, BoB, said.

Meanwhile, the board of Canara Bank has approved a stock-split. In a regulatory filing, Canara Bank said its board has approved the sub-division of its shares having a face value of Rs 10 each into five equity shares of face value of Rs 2 each, subject to Reserve Bank of India (RBI) approval.

The Canara Bank share on Monday ended at Rs 572.80, a loss of 1.24 per cent over the last close.