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.
|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||–|
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.
Rate of Interest (P.a)
Loan Tenure (Years)
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).
This benchmark helps determine the applicable BOB housing loan interest rate. Bank of Baroda typically uses the following benchmarks for its home loans:
|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.|
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.
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%|
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.
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.
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.
Bank of Baroda offers special rates of interest to its own employees.
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%|
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 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%|
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.
Bank of Baroda also offers one of the most attractive home loan interest rates in the country, currently starting from 9.15% p.a.
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)
Bank of Baroda home loans usually come with a tenure of up to 30 years, allowing borrowers ample time to comfortably repay their loans.
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.
With over 8,200 branches across the country, Bank of Baroda offers home loan facilities in every district and town in India.
Let’s take a closer look at the offering of home loans from BOB, with interest rates applicable, and other important details.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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)
Varies from case to case as per bank’s discretion.
Gram Panchayat approvals are not admissible by Bank of Baroda if these are not supported by Town Planning approvals.
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.
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.
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.
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.
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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