1 / 7Public sector Bank of Baroda (BOB) has reduced the interest rate on car loans from 0.25 per cent to seven per cent. Until now, the bank used to give car loans at an annual interest of 7.25 percent.2 / 7The bank said in a statement on Monday that apart from cutting interest rates, it has also reduced the loan processing fee for a limited period till June 30, 2022 to Rs 1,500 (excluding GST).3 / 7The bank said that the benefit of this interest rate and discounted processing fee will be available only on the purchase of a new car.4 / 7This interest rate will be linked to the customer's 'credit profile'.5 / 7HT Solanki, general manager (mortgages and other retail assets) of the bank, said, 'With the reduction in interest rates and processing fees on car loans, it will be cheaper for customers to buy the vehicle of their choice.'6 / 7No change has been made in interest rates on old i.e. second hand car and two wheeler loans.7 / 7Last month, Bank of Baroda had also reduced the interest rate on housing loans from 6.75 per cent to 6.50 per cent.