Bank of Baroda Home Loan Interest Rate April 2023
Bank of Baroda (BoB) home loan interest rate starts at 9.15% p.a. For the salaried and 9.25% p.a. for the self-employed. Bank of Baroda home loan repayment tenure can go up to 30 years (including a 36 months moratorium period once the loan amount is disbursed). The maximum loan amount is ₹20 crore per unit to any individual, depending on the area the property is proposed to be constructed/purchased. Up to 90% of the assessed property value may be availed as loan for newly constructed flats or houses. BoB processing fee ranges from o.25% to 0.50% of the loan amount.
Other than regular home loan, Bank of Baroda offers Baroda Home Loan Advantage, Baroda Home Loan Takeover Scheme, Baroda Pre-approved Home Loan, Baroda Home Improvement Loan, Baroda Home Suvidha Personal Loan, Baroda Top-Up Loan and Credit Risk Guarantee Fund Scheme.
Bank of Baroda Home Loan Interest Rates 2023 Highlights
| Different Home Loan Schemes | Interest rate range (p.a.) |
| Bank of Baroda Regular Home Loan | 9.15% to 10.60% |
| Bank of Baroda Home Loan Advantage | 9.15% to 10.85% |
| Baroda CRE Home Loan | 9.40% to 11.10% |
| Bank of Baroda Home Improvement Loan | 9.15% to 10.60% |
| Bank of Baroda Pre-approved Home Loan | Solely at Bank’s Discretion |
| Bank of Baroda Home Loan Takeover Scheme | Solely at Bank’s Discretion |
| Bank of Baroda Top-Up Loan | 10% to 11.45% |
| Bank of Baroda Home Suvidha Loan | 9.90% onwards |
| Bank of Baroda Credit Risk Guarantee Fund Scheme | – |
Bank of Baroda Home Loan Interest Rate Calculator
Calculating BOB home loan interest rate and EMIs before taking a home loan is crucial to assess loan affordability and also plan your finances. It helps you understand your monthly liability towards the home loan so you can budget in advance. While the maths may be complicated by the number of parameters to consider, you can find your BOB home loan interest and monthly EMI amount instantly and conveniently using an online home loan EMI calculator, like the Navi Bank of Baroda home loan interest rate calculator.
Calculate Your Bank of Baroda Home Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Years)
Years
Monthly EMI
0
Total Interest
Total Amount
To get started with your Bank of Baroda home loan calculator, all you need to do is enter the loan amount, the applicable rate of housing loan interest rate, and the loan tenure. The calculator would show the estimated EMI amount and total payable amount in seconds!
In addition, the Bank of Baroda loan calculator displays an amortisation table (your payment schedule), which gives you an idea of how long you’ll be paying EMIs. The one caveat here is that when you have availed a home loan on flexi-rate basis, the rate of interest could change as per the changes in the base rate; but the calculator would assume the same rate of interest throughout the loan tenure.
For example, a home loan of ₹25 lakh at 9.15% p.a. taken for 20 years would result in an EMI of ₹22,735. The total interest payout for the entire loan duration would be ₹29,56,373, taking the total payable amount to ₹54,56,373 (Interest + ₹25 lakh principal).
Factors that Affect Bank of Baroda Home Loan Interest Rate
1. Interest Rate Benchmark
This benchmark helps determine the applicable BOB housing loan interest rate. Bank of Baroda typically uses the following benchmarks for its home loans:
- Marginal Cost of Funds Based Lending Rate or MCLR is also used to determine applicable home loan interest rates. Here are the current Bank of Baroda MCLR rates:
| MCLR type | Revised rate |
| Overnight MCLR | 7.95% p.a. |
| 1-month MCLR | 8.20% p.a. |
| 3-month MCLR | 8.30% p.a. |
| 6-month MCLR | 8.40% p.a. |
| 1-year MCLR | 8.60% p.a. |
- Baroda Repo Linked Loan Rate or BRLLR is linked to the repo rate – the key policy rate of the Reserve Bank of India. For retail loans, Bank of Baroda uses BRLLR of 9.15%. Bank of Baroda’s BPLR (the older method of determining interest rate) for all existing accounts is 13.45% since 12 January 2023.
- Base rate of interest for Bank of Baroda that defines the lowest lending rate the bank can offer is set at 9.15% per annum. For home improvement loans, base rate + 2.50% applies.
2. CIBIL Score
The loan applicant’s credit score, also known as CIBIL score, tells the bank about the applicant’s creditworthiness and presents their loan repayment track record. Lenders look at your credit score when assessing their lending risk and determining the applicable interest rate. Borrowers displaying a higher CIBIL score (or as near to the maximum score of 900) are more likely to be offered lower interest rates.
3. Loan to Value (LTV) Ratio
This ratio determines the maximum amount the bank is willing to lend to you as home loan, expressed as a percentage of the property value. For example, Bank of Baroda has a maximum LTV of 90%. This means, if the asset or activity (such as home remodelling) is worth ₹1 crore, the bank may lend a maximum of ₹90 Lakh as home (improvement) loan for it. Generally, a low LTV ratio could translate to faster loan approval at lower interest rates. But this means, applicants will need to make a sizable down payment contribution to make up for full value. Here are the current LTV norms for Bank of Baroda home loans:
| Loan Amount | Maximum Permissible LTV | Margin |
| Up to ₹30 Lakh | 90% | 10% |
| > ₹30 Lakh <= ₹75 Lakh | 80% | 20% |
| > ₹75 Lakh | 75% | 25% |
4. Loan Amount
Loan amount is a significant factor that impacts interest rates that will be extended to you on your Bank of Baroda Home loan. Typically, opting for a higher volume of anything might result in lower costs, but not in the case of loans. A low home loan amount, say, less than ₹30 Lakh, could also result in lower interest rates than a higher loan amount (like ₹50 Lakh, for example). This has primarily to do with the amount of risk the bank needs to take on to lend you the money.
5. Income
Monthly income for the whole household is taken into consideration while considering eligibility and interest rates. If you have multiple earning members in your immediate household or multiple sources of income, you are in luck. Higher household income improves your eligibility and could mean lower interest rates.
At the other end of the spectrum, Bank of Baroda also offers special concessions to lower income borrowers.
6. Property Location
Considering the vast difference in property prices in metropolitan cities versus small towns, location impacts the loan eligibility and the applicable rates. Borrowers are likely to be able to get a bigger loan amount sanctioned for a small property in a big city as compared to the amount you might be able to access for a rural property.
7. Occupation
Bank of Baroda offers special rates of interest to its own employees.
Also Read
Bank of Baroda Home Loan Interest Rate for Salaried
BoB home loan interest rate for salaried employees can range from 9.15% to 11%. Here are the details:
| Baroda Home Loan | 9.15% – 10.50% |
| Baroda Home Improvement Loan | 9.15% – 10.50% |
| Baroda Home Loan Advantage | 9.15% – 10.75% |
| Baroda CRE Home Loan | 9.40% – 11% |
Bank of Baroda Home Loan Interest Rate for Self-Employed
BoB home loan interest rate for salaried employees can range from 9.25% to 11.10%. Here are the details:
| Baroda Home Loan | 9.25% – 10.60% |
| Baroda Home Improvement Loan | 9.25% – 10.60% |
| Baroda Home Loan Advantage | 9.25% – 10.85% |
| Baroda CRE Home Loan | 9.50% – 11.10% |
Bank of Baroda Home Loan Interest Rate Comparison with Other Banks
| Bank Name | Home Loan Interest Rate Range (p.a.) |
| Bank of Baroda | 9.15% – 11.10% |
| State Bank of India | 9.15% – 10.15% |
| Punjab National Bank | 8.50% – 10.85% |
| HDFC | 8.50% – 14.35% |
| ICICI Bank | 9.00% – 10.05% |
| Kotak Mahindra Bank | 8.85% onwards |
| Union Bank of India | 9% – 12.65% |
| Canara Bank | 8.85% – 11.25% |
| Axis Bank | 8.75% – 14% |
| Bandhan Bank | 9.15% – 15.00% |
Feature and Benefits of Bank of Baroda Home Loan
1. Home loans for all Types of Requirements
Bank of Baroda offers a variety of home loans to suit the diverse needs and financial situations of borrowers. These include regular home loans, savings-linked home loans, pre-approved home loans, renovation home loans and loans for underprivileged borrowers.
2. Competitive Interest Rates
Bank of Baroda also offers one of the most attractive home loan interest rates in the country, currently starting from 9.15% p.a.
3. Low Processing Fee
Bank of Baroda home loans also come with low processing fees as follows: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹25,000)
4. Long Repayment Tenures
Bank of Baroda home loans usually come with a tenure of up to 30 years, allowing borrowers ample time to comfortably repay their loans.
5. No Prepayment Penalty
Bank of Baroda charges zero prepayment and part prepayment penalty on most of their schemes. This allows borrowers to better manage their loan financing effectively.
6. Wide Network
With over 8,200 branches across the country, Bank of Baroda offers home loan facilities in every district and town in India.
Different Types of Home Loans Offered by Bank of Baroda
Let’s take a closer look at the offering of home loans from BOB, with interest rates applicable, and other important details.
1. Bank of Baroda Regular Home Loan
This is the basic, no frills, and very typical home loan offering by Bank of Baroda. This loan can be used to buy a plot, purchase a flat, build your own home, or extend your existing residence. You also get a longer moratorium period of 36 months from the date of the loan amount disbursal.
- Type of Applicant: Resident Indians
- Age: 21 to 65 years
- Loan Tenure: Up to 30 years
- Loan Amount: Up to 20 crores, as per bank’s discretion
- CIBIL Score: 701 and above
- Processing Fee: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000)
- Interest Rate: 9.15% to 10.60% p.a. (Floating interest rate, tied to Baroda Repo Linked Lending Rate, ie BRLLR, of the bank, reset monthly)
2. Bank of Baroda Home Loan Advantage
Under this type of loan, the borrower has the option of linking their savings bank account to their home loan. All the credit available in the linked savings account at the end of the day will be counted for credit in the linked home loan account. Consequently, the borrower gets a lower interest rate to the extent of the daily outstanding credit balance in the savings account.
- Type of Applicant: Resident Indians
- Age: 21 to 65 years
- Loan Tenure: Up to 30 years
- Loan Amount: Up to ₹75 lakhs, at the bank’s discretion
- CIBIL Score: 701 and above
- Processing Fee: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000)
- Interest Rate: 9.15% to 10.85% p.a.
3. Bank of Baroda Home Improvement Loan
Home loans need not only be utilised for purchasing a new home. This home loan amount can be spent on the renovation and repair of your home. You can also use this loan to undertake the improvement of your home by way of new furniture & furnishings, fittings, appliances and electronics.
- Type of Applicant: Resident and Non-Resident Indians
- Age: 21 to 65 years
- Loan Tenure: Up to 15 years
- Loan Amount: Up to 50 lakhs, at the bank’s discretion
- CIBIL Score: 701 and above
- Processing Fee: 0.50% (minimum: ₹8,500; maximum: ₹15,000)
- Interest Rate: 9.15% to 10.60% p.a. (Floating interest rate, tied to Baroda Repo Linked Lending Rate, ie BRLLR, of the bank, reset monthly)
4. Bank of Baroda Pre-approved Home Loan
The Bank of Baroda Pre-Approved Home Loan provides in-principle approval for a home loan prior to the identification of a specific house, flat, or plot by a prospective borrower. The idea is to empower loan applicants with better negotiation abilities and an idea of what amount they will have to spend. It is valid for 4 months. The finer details (as described in the prior types of loans) are finalised only after the property details and loan approval are cemented.
5. Bank of Baroda Home Loan Takeover Scheme
Under the Bank of Baroda Loan Takeover Scheme, borrowers who have a running home loan with more than 12 EMIs paid can transfer their loan to Bank of Baroda without having to submit income documents. Some of the benefits on offer include longer tenures, lower interest rates, easy top-up loans, no pre-closure charges, finance life insurance and a free credit card.
- Type of Applicant: Resident Indians, NRIs, PIOs and OCIs
- Age: 21 to 65 years
- Loan Tenure: Up to 30 years
- Loan Amount: At the bank’s discretion
- CIBIL Score: 701 and above
- Processing Fee: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹25,000)
- Interest Rate: May be linked to other details of existing loan.
6. Bank of Baroda Top-Up Loan
This loan can be used when you have estimated a specific capital requirement for your home loan, but find that your requirements are higher than initially anticipated. It may be used for any purpose, provided it falls within legal bounds.
- Type of Applicant: Resident Indians, NRIs and PIOs
- Age: 21 to 65 years
- Loan Tenure: Age of the borrower + tenure should not exceed 65 years
- Loan Amount: At the bank’s discretion.
- CIBIL Score: 701 and above
- Processing Fee: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹25,000)
- Interest Rate: Applicable ROI on linked Home Loan (Based on BRLLR on the date of availing of the Top up Loan) + Strategic Premium (0.25%) + 0.60%
7. Bank of Baroda Home Suvidha Loan
Borrowers can avail of this Bank of Baroda Home Loan to cover all the miscellaneous costs that come with the purchase of a new home. This may include the cost of insurance, registration costs, stamp duty, GST and even club membership fees.
- Type of Applicant: Resident Indians
- Age: 21 to 65 years
- Loan Tenure: At the bank’s discretion
- Loan Amount: At the bank’s discretion.
- CIBIL Score: 701 and above
- Processing Fee: 0.50% for loan amounts up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% for loan amounts above ₹50 lakh (minimum: ₹8,500; maximum: ₹25,000)
- Interest Rate: Applicable ROI on linked Home Loan (Based on BRLLR) + Strategic Premium (0.25%) + 0.60%
8. Bank of Baroda Credit Risk Guarantee Fund
The Indian Government’s Ministry of Housing and Urban Poverty Alleviation established a Credit Risk Guarantee Fund Trust. The Trust provides guarantees for low-income housing loans. A Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) was launched by the Government of India on 31st October 2012, which is managed by the National Housing Bank.
Bank of Baroda’s role: The trust provides lending institutions (like Bank of Baroda) with a credit risk guarantee up to ₹5 lakhs for loans provided to borrowers in the Economically Weaker Section (EWS)/Lower Income Group (LIG) categories in urban areas. This means that these underprivileged borrowers need not supply any collateral security and/or third-party guarantee, where they do not possess these.
- Type of Applicant: Resident Indians from EWS/ LIG
- Age: 21 to 65 years
- Loan Tenure: Up to 30 years
- Loan Amount: Up to ₹5 lakh
- CIBIL Score: not applicable/ required for this type of loan
- Processing Fee: 0.50%
- Interest Rate: 9.15% to 10.60% p.a
Also Read
How to Apply for a Bank of Baroda Home Loan
Follow the steps below to apply for BoB home loan:
Step 1: Check eligibility and fill out the application
Step 2: Submit all the required documents
Step 3: After you submit the documents and the application form, the bank will verify your eligibility by checking your income, CIBIL score, property documents, etc. Based on the verification, the bank will give a soft approval to eligible applicants.
Step 4: Bank of Baroda’s panel of lawyers will parallelly check and verify the property documents and do a legal and technical check. Civil engineers engaged by the bank will also do a property inspection and valuation, and the valuator’s statement is submitted to the legal team.
Step 5: Upon successful verification, the bank will sanction the loan and eventually disburse the amount typically directly to the seller’s account. A bank representative will also collect the original property documents at the time of registration.
For under-construction properties, the disbursement will be based on the builder’s requirement as per the construction stage.
Bank of Baroda Home Loan Eligibility
- Resident Type: Indian Residents, NRI or PIOs
- Age: 21 to 65 years
- CIBIL Score: 701 and above (applicants without a credit history also eligible)
- Loan Amount: Up to ₹20 crore as per loan type, eligibility of the applicant, etc.
- Type of Occupation: Salaried (government or non-government employees), non-salaried, businesspersons, and also low-income borrowers.
- Income: Varies as per loan type and eligibility
Bank of Baroda Home Loan Charges
1. Processing Fee
0.50% of the loan amount for loans up to ₹50 lakh (minimum: ₹8,500; maximum: ₹15,000) and 0.25% of the loan amount for loans above ₹50 lakh (minimum: ₹8,500; maximum: ₹25,000)
2. Non-refundable Legal Charges and Valuation Fee
Varies from case to case as per bank’s discretion.
Documents Required for a Bank of Baroda Home Loan
1. Mandatory Documents
- Duly filled loan application form
- 3 passport size photographs
- Any one identity proof: PAN/ Passport/ Driver’s License/ Voter ID Card/ Aadhaar Card (PAN Mandatory for loans above 10 lakh)
- Any one residence proof: Driver’s License / Ration Card/ Voter ID / Passport / Aadhaar Card / Registered Rent Agreement
2. Property Documents
- Agreement for sale
- Non-Agriculture certificate
- Approved plan copy of blueprint
Note
Gram Panchayat approvals are not admissible by Bank of Baroda if these are not supported by Town Planning approvals.
3. Account Statement
- Last 6 months Bank Account Statements for all Bank Accounts held by the applicant and co-applicant
- If any previous loan from other lenders, then Loan A/C statement for last 1 year
4. Income Proof for Salaried Applicant/ Co-applicant/ Guarantor
- Salary Slip of last 3 months
- Copy of Form 16 for last 2 years or copy of I-T Returns for last 2 financial years, acknowledged by I-T Dept.
5. Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:
- Business address proof
- I-T returns for last 3 years
- Balance Sheet & Profit & Loss A/c for last 3 years
- Business License Details(or equivalent)
- TDS Certificate (Form 16A, if applicable)
- Certificate of qualification (for CA/ doctor and other professionals)
6. Additional Documents
- List of Documents, in respect of property submitted to Bank (duly acknowledged by Bank of Baroda)
- Sanction Letter
- Foreclosure letter (if applicable/available)
Tips to Avail Bank of Baroda Home loan at a Lower Interest Rate
1. Improve Your Credit Score
It helps to be diligent about paying EMIs on all your existing loans (including credit cards and EMI payments for retail purchases) in full and on time. If you never miss a loan repayment, you can improve your credit/CIBIL score over time.
2. Get a Co-applicant
Adding a co-applicant for your home loan increases your eligibility and could serve to reduce interest rates, especially if the co-applicant’s credit score is high. If they have a high income and a good CIBIL score, it can even help them get a lower interest rate.
3. Increase Your Down Payment
Increasing your down payment contribution is a smart way to decrease your loan-to-value ratio, which, in turn, could help you get a lower interest rate on your home loan.
Final Word
Compare different lenders before applying for a home loan. Make sure to consider all the additional charges involved like processing fee. Use Bank of Baroda Home Loan calculator to check your repayment obligations in advance. This would help you manage your repayments better.
Planning to buy your dream home? Apply for a home loan with Navi Home Loan and get your loan approved within minutes and that too with minimal documents. Enjoy competitive interest rates and flexible EMI options. Download the Navi app today.
FAQs
Yes, Bank of Baroda offers home loan balance transfer facility from any bank or housing finance company (HFC) and Non Banking Financial Corporation (NBFC).
Your credit score impacts both your eligibility and the interest rate you will need to pay on your loan amount. Bank of Baroda lists a credit score of 701 as ideal for receiving a loan approval.
Yes, you can use your regular Bank of Baroda home loan to expand your existing residence (if you have FSI documentation).
Yes, you can use the Bank of Baroda Home Improvement loan for these purposes, and also if you require new furniture and furnishings, or to modernise your fittings.
Your credit score as well as that of your co-applicant will be impacted negatively – this creates hurdles if you ever require capital in the future. Bank of Baroda may offer to restructure the loan by extending the loan tenure to help you repay the loan – this is at the discretion of the bank. As a last resort, the bank may be forced to auction the property to recover its dues.
Yes! You can direct any underprivileged credit-seekers to Bank of Baroda, and they can opt for the Bank of Baroda Credit Risk Guarantee Fund. A government-aided Credit Risk Guarantee Fund Trust provides lending institutions (like Bank of Baroda) with a credit risk guarantee so that banks are able to lend to borrowers in the Economically Weaker Section (EWS)/Lower Income Group (LIG) categories from urban areas.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
