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Home loan
 Bank of Baroda Home Loan Interest Rate
Interest Rate 8.35% onwards
Processing Charges Upto 1% of loan amt.
Loan Tenure Upto 30 years
Loan Amount Rs. 10 crores
Cheque Bounce Charges Rs.500 per instance
Cheque / Instrument Swap Charges Rs.500 per instance
Prepayment or Foreclosure Charges Nil if floating, upto 2% for fixed rate 

Bank of Baroda offers easy home loans to all its customers, thus enabling them to purchase a house of their dreams. Loans offered by Bank of Baroda come at low-interest rates, easy documentation, and quick approval approach. Home loan available at Bank of Baroda come in a lot of variants depending upon the customers’ requirement and suiting their budget.


Key features & Eligibility of Bank of Baroda Home Loan:
 

  • BOB offers Home loans to all salaried, non- salaried and self-employed professionals.
  • The BOB Home loans interest rate is competitive
  • Home loan from Bank of Baroda is available for the purpose of purchase of new houses, purchase of old flats (not more than 25 years old), plots available for construction of flats/houses (subject to be constructed within a period of 3 years), construction or renovation of existing homes.
  • The bank adopts the practice of charging floating or variable interest rates.
  • The bank also provides refinancing options, which allows the customer to transfer his existing home loans in other banks to Bank of Baroda at comparatively lower interest rates.
  • Bank of Baroda home loans also gives the applicant certain income tax benefits.
  • It also gives its customer an option of applying for top up loans linked to the applicant’s current BOB Home loans.
  • It also gives the applicant a free personal accidental insurance for the stipulated BOB Home loans repayment period.
  • The bank also issues a complimentary credit card with a limit of Rs.2 lacs and above to all the first time BOB home loan borrowers.
  • It also provides extra benefits in the form of concessions up to 0.25% in the interest rate for car loans and concessions up to 0.50% in the interest rate of the loan for consumer durables.
  • Generally, the BOB Home loans are sanctioned within a period of 6 working days after the submission of the relevant documents for home loans.
  • Loan Amount: An applicant can apply for a BOB Home loan amounting to 80% of the cost of the property, in the case of Bank of Baroda home loan.
  • Age: The maximum age of applying for BOB Housing loans in case of a salaried professional is set at 65 and 70 for self-employed professionals.
  • The bank also provides the facility of adding a co-applicant while applying for the Bank of Baroda home loan.
  • The Co-applicants can be the applicant’s spouse or even children below the age of 50 years, with a steady source of income
  • The validity of the Bank of Baroda home loan sanction stands for a period of 4 months.
  • The bank requires a security in the form of equitable mortgage of the housing property and other suitable securities in order to issue a Bank of Baroda home loan.
  • Processing fee: For loan amount up to Rs.50 lakh is 0.50% of Loan amount i.e. minimum amount of Rs.7,500 and maximum amount of Rs.12,500
    For loan amount above Rs.50 lakhs is 0.25% of Loan amount i.e. minimum amount of Rs.7,500 and maximum amount of Rs.20,000
  • For every Bank of Baroda home loan up to Rs.20 lakhs, the bank requires a minimum margin of 10%.
  • For loans lying between Rs.20 lakhs and Rs.75 lakhs, the bank requires a minimum margin of 20%.
  • For loans above RS.75 lakhs, it requires a minimum margin of 25%.
  • The bank allows for prepayment of part prepayment of the Bank of Baroda home loan at no extra charge.

Amount of Bank of Baroda Housing Loan:
 

  • An applicant can avail loans varying from an amount of minimum of Rs.100 lakhs to a maximum of Rs.300 lakhs. However, the loan amount eligibility depends on upon the area of residence of the applicant
  • An applicant residing in the rural/semi-urban area can apply for a Bank of Baroda home loan of a maximum of Rs.100 lakh, whereas applicants from other areas can apply for a BOB Home loan for a maximum amount of Rs.300 lakhs.
  • The amount of home loans sanctioned varies depending upon the applicant’s business profile. A salaried professional with a monthly income up to Rs.20000 can avail loans up to 36 times of his gross monthly income, A salaried professional with a monthly income of RS.20000- Rs.1 lakh can avail loans up to 48 times of his monthly income and A salaried professional with a monthly income of more than Rs.1 lakh can avail Bank of Baroda home loan of up to 54 times of his monthly income ,whereas, a self-employed professional or a businessman can avail loans up to 5 times the average of  his last three years annual income.

Repayment Period of Bank of Baroda Housing Loan Scheme:
 

The bank sanctions a BOB housing loan for maximum loan tenure of 30 years. This tenure includes the 36 month moratorium period. The 36 month moratorium periods is reached upon by taking into consideration an 18 month moratorium period for construction of houses up to 7th floor and post that a moratorium period of 6 months for every new floor to be constructed, subject to a maximum period of 36 months.


The maximum repayment period also depends on the retirement age of the applicant at the time of maturity of the loan i.e. the repayment tenure added to the applicant’s age should not cross the retirement age of the applicant at the time of maturity of the loan. This is applicable in the case of salaried professionals. However, a salaried professional drawing regular pension can apply for repayment period to a maximum of 70 years of his age.


In the case of non-salaried self-employed professionals, the repayment tenure can exceed beyond 70 years, provided that the applicant availability of sufficient funds and a steady source of income. The repayment tenure can also be increased by ways of adding the applicant’s legal heir (Son/daughter/spouse) who are below the age of 50 years and have a sound source of income as a co-applicant or co-borrower of the loan. This condition is required to be fulfilled by the applicant to ensure smooth repayment of the loan.


Bank of Baroda offers home loans in a lot of variety suitable to meet the applicant’s needs and desires. The various categories of loans are:


Home Improvement Loans:


Home improvement loan is a unique offering by Bank of Baroda, whereby, the banks extends loans to individuals wishing to make renovations or extensions to their existing homes. These loans are basically availed for improvement of the décor of one’s home.


Key Features of Bank of Baroda Home Improvement Loans:
 

  • These loans are given to both, existing Bank of Baroda home loan borrowers or new borrowers.
  • These loans are issued for the purpose of purchasing gadgets such as fans, geysers, furniture, fittings and all other such goods required for a comfortable living.
  • This loan can be availed by all Resident Indians either singly or jointly.
  • The minimum age for availing this loan is set at 21 years.
  • The maximum repayment period also depends on the retirement age of the applicant at the time of maturity of the loan i.e. the repayment tenure added to the applicant’s age should not cross the retirement age of the applicant at the time of maturity of the loan. The maximum age, given the above-mentioned condition is set at 60 years for a salaried professional and 65 years for a non-salaried self-employed professional.
  • The principal applicant of the loan should have a steady source of income for a minimum period of 3 years.
  • The amount of loan to be sanctioned varies depending upon the applicant’s business profile. A salaried professional can avail loans up to 2 times of his gross annual income, ,whereas, a self-employed professional or a businessman can avail loans up to 3 times the average of  his last three years annual income, along with the depreciation claimed individual i.e. the depreciation value of the property in question and not the depreciation value of the entire business unit.
  • The bank requires a minimum margin of 25% of the project cost. Project cost here refers to the estimated cost of repairing, renovations, and purchase of furniture, fixtures, other gadgets and other stamp duties payable for fulfilling the criteria of equitable mortgage.
  • The bank keeps the property (to be renovated) sunder mortgage as security.
  • The loan can be applied for a maximum tenure of 10 years to be paid off by ways of Regular EMI’S.
  • The bank allows a maximum moratorium period of 6 months or one month after completion of the renovation work, whichever is lower.
  • Processing fee: The bank charges a processing fee standing at the rate of 0.50% of the sanctioned loan amount.

Baroda Home Loan Advantage:
 

The Baroda home loan advantage is a special loan, wherein, the bank links a dedicated savings bank account to the applicant’s existing Bank of Baroda home loan account. This account shall be treated as a normal savings bank account, giving the applicant the flexibility to deposit or withdraw any surplus cash available with him in this account. Any credit balance in the account, at the end of the day will be directly debited from the applicant’s savings account and simultaneously credited in the applicant’s home loan account. This will benefit the applicant by ways of reduction in the accrued interest in the Bank of Baroda home loan account to the extent of the amount of the credit balance in the savings account. The EMI of the applicant will also be directly debited from the linked savings account. Hence, the applicant must make sure to deposit sufficient cash on the specified EMI due date.


The bank issues this loan at an interest rate of 8.35% onwards. 


Bank of Baroda Pre-Approved Loan:
 

  • This loan provides for an ‘in principle’ approval of a Bank of Baroda home loan even before the property to be purchased is identified by the applicant. Basically, it’s a pre-approved loan offer made to prospective home loan borrowers.
  • This facility gives the applicant higher flexibility and empowers him to negotiate freely with the sellers/builders.
  • The customer before looking for a property can be assured of his loan amount eligibility and hence, can make a purchase decision keeping the same in mind.
  • The in principle loan sanction letter will give an eligible loan amount on the basis of prevailing market rates and other terms and conditions of the home loan.
  • The income details of the customer as per the existing criteria of home loans to Resident Indians or NRI/PIO or Baroda Home loan advantage scheme will be the deciding factor of the eligible loan amount.
  • The pre-approved sanction letter can be obtained only after submission of the documents supporting the applicant’s income proof and repayment capacity. However, the property documents will not be accepted as a valid document for obtaining the letter.
  • The pre-approved sanction letter is valid only for a period of 4 months from the date of issuance of the letter.
  • The bank charges a unified processing fee consisting of the processing fee, documentation fee, document verification fee, pre and one-time post sanction verification fee standing at the rate of 0.50% of the sanctioned loan amount, subject to a minimum amount of Rs.7500 and a maximum of Rs.12500. The charges mentioned are exclusive of service tax. Service tax and other statutory levies as applicable will be charged over and above the mentioned charges.
  • The applicant has to acquire a suitable property within 4 months i.e. before the expiry of the validity of the pre-approved sanction letter. The balance amount of the unified processing fee will be charged only after actual sanctioning of the loan.

Baroda Home loan Suraksha Personal Loan:
 

Bank of Baroda also extends loans to its existing home loan borrowers for the purpose of funding life insurance premium for Group credit life insurance.
 

  • These BOB Housing loans are extended for funding the premium amount under group credit life insurance issued by M/s. India First insurance co & M/s. Kotak life insurance. This scheme is available exclusively to home loan borrowers.
  • This loan is sanctioned along with Baroda home loans. However, existing home loan borrowers this facility has to be availed separately.
  • In case the borrower wishes to close his/he loan account, then he/she will have to also close this personal account.
  • The income details of the customer as per the existing criteria of home loans to Resident Indians or NRI/PIO or Baroda Home loan advantage scheme will be the deciding factor of the eligible loan amount.
  • The maximum amount of loan issued is subject to the amount of the premium for Group credit life insurance cover for home loan borrowers and co-borrowers as insurance issued by M/s. India First insurance co & M/s. Kotak life insurance.
  • The bank issues Baroda Home loan Suraksha personal loan at the rate of 9.90% p.a.
  • The age criteria and other charges are same as the Home loan guidelines.
  • The repayment period for the new borrowers is set at a minimum of 50% of the original home loan period.

Bank of Baroda NRI Home loan:
 

A loan available for NRIs and PIOs for their housing related requirements. The features of the loan include:
 

  • The loan is customized to suit the requirements of NRIs or PIOs.
  • The home loan offers a free Personal Accident insurance coverage
  • Part-prepayment of the loan is allowed and the loan can also be foreclosed without incurring any additional charges
  • For loans up to Rs.30 lakhs, the bank requires a margin of 10% which increases to 20% for loans above Rs.30 lakhs and up to Rs.75 lakhs. Loans amounting to higher than Rs.75 lakhs require a 25% margin which is withheld by the bank
  • As a security for the loan, the bank asks for an equitable/legal mortgage of the property which is constructed, purchased, renovated or repaired using the loan amount. Along with this a personal guarantee of the spouse or family member who is residing in India would be required. If the spouse also resides abroad, a personal guarantee of one or two individuals who are resident Indians would be required.
  • The repayment tenure for the loan is limited to 15 years which also includes the moratorium period allowed. The loan repayment should be made from abroad through normal banking channels or through the NRIs NRE/NRO account. The relatives of the borrower staying in India can also repay the loan. If the borrower is repaying the loan, post-dated cheques of the installments would have been taken.

BOB Home loan Eligibility

NRIs or PIOs holding a valid Indian or foreign passport can apply for Bank of Baroda Home loans. The applicants must be salaried or self-employed with a minimum annual income equivalent to Rs.5 lakhs. Salaried individuals can avail a loan up to 48 times their monthly income over the last 2 years while self-employed individuals can avail a maximum loan of 4 times their average annual income over the last two years.

Rate of Interest

The rate of Interest under all retail loans are linked to 1 year MCLR (8.35%). 

Fees & Charges

The bank levies certain fees and charges on all the loans that it issues. Given below is the detailed list of the charges:
 

  • Unified Loan Processing Fees:

The bank charges a unified processing fee consisting of the processing fee, documentation fee, document verification fee, pre and one time post sanction verification fee standing at the rate of 0.50% of the loan amount or Rs.5000, whichever is higher, in case of loans amounting to up to Rs. 30 lakhs and a loan processing fee standing at the rate of 0.40%of the sanctioned loan amount, subject to a minimum amount of Rs.15000 and a maximum of Rs.50000, in case of loans amounting to more than Rs.30 lakhs. The charges mentioned are exclusive of service tax. Service tax and other statutory levies as applicable will be charged over and above the mentioned charges.
 

  • Inspection Charges:

The bank reserves the right to inspect the borrower’s property as per its will. The bank charges a minimal inspection fee of RS.100 for every second inspection that it makes after the issuance of the loan.
 

  • Legal Opinion And Valuation Charges:

The bank charges a as a fee for obtainment of a legal opinion on the title of the property in question, through a lawyer appointed by the bank. However, these charges are levied even if the title establishment is not clear and the loan has not been sanctioned.
 

  • Valuation Fee:

A certain amount of valuation fee has to by the borrower in order to establish a correct valuation of the property in question, through the bank’s evaluator.
 

  • Other Charges:

Apart from the charges, the bank also levies certain fees in the for stamp duty for execution of the documentation, statutory levies as applicable and other related charges. These charges are to be paid by the applicant.
 

  • Prepayment Charge:

The bank does not levy any charge on pre-closure of the loan.
 

  • Conversion Charges:

If an applicant wishes to switch from fixed interest rate to floating interest rate, he/she can do so by paying a minimal amount standing at the rate of 0.50% on outstanding balance payable ever year for the outstanding loan tenure. However, the applicant must keep in mind that the account maintained by him with the bank should be regular in nature and the applicant needs to give the bank a proper request in writing in order to avail this service.
 

  • Penal Charges:

The applicant must make sure that the EMI’s are paid well on time; the bank levies fee of 2% on the EMI, calculated from the period of the date to the actual date of payment.
 

  • CIBIL Report:

The bank is authorized to issue the applicant’s CIBIL report to any Government authorized credit bureaus without any prior notice to the applicant.
 

The bank offers its applicants certain concessions on the loans depending upon the prevailing situations. The bank offers a 100% waiver on all Bank of Baroda home loans applied for, till the date of 31st March 2016. In case of loans availed for the purpose of the takeover of existing loans, the bank offers 100% waiver on all the charges i.e. all take over loans are issued by the bank at zero cost. However, this offer is valid only on take-over loans amounting to Rs.50 lakhs and above.

Bank of Baroda Home loan EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.


Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Applying for a Home Loan

The bank offers Home Loan application through the Paisabazar.com website. Any customer wanting to avail of any of the Home Loans offered by Bank of Baroda can visit the mentioned website, fill up the required details and apply for the loan.

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