Bank of Baroda (BoB) on Monday announced a 30-basis-point cut in its car loan interest rates, with immediate effect, in a move aimed at boosting retail credit demand.

Following the revision, the bank’s floating rate on car loans now starts at 7.6 per cent per annum, BoB said in a statement. The lender also continues to offer fixed-rate car loans, with interest rates beginning at 8.5 per cent per annum.

The reduction is expected to make vehicle financing more attractive for customers amid improving market sentiment.