Bank of Baroda Home Loan Review

The Bank of Baroda home loan loan is available to purchase a new house, flat, land and extend existing houses. There is no processing fee at this point in time and that comes as a great relief as the interest rate has increased by around one percent.

This loan is unique from others as it provides home loans to even those looking to purchase plot lands and not just homes. Another remarkable feature is the flexible eligibility criteria that allows applicants to add their family members as co-loan participants if their own income is lower than what the bank requires to lend.

FEATURED PARTNER OFFER

Bank of Baroda Home Loan

5.0

Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Processing Fee

Nil

Interest Rate

Starting with 7.45%

Processing Fee

Nil

Interest Rate

Starting with 7.45%

Pros & Cons

• This loan is available for people purchasing land as well.
• A moratorium period of 36 months.
• No foreclosure charges.
• More than one member of a family can take this loan jointly.
• Less interest rate.
• Non resident Indians can also apply.
• No processing fee.
• Farmers can do the repayment in half yearly Installments coinciding with harvesting, marketing of major crops.

• For semi-urban areas the maximum amount is just INR 1 crore.

Amount given as loan by Bank of Baroda

Semi-urban and rural : INR 1 crore

Metros  : INR 7.50 crore

Urban areas : INR 3 crore

Mumbai : INR 20 crore

Chandigarh, Panchkula and Mohali: INR 5 crore

Time Period

Maximum 30 years (this will depend on the age of the person).

Moratorium Period

Upto 36 months

Credit Score Requirement

If the credit score is 750 then the person can get a home loan at an interest rate of 7.45%. The maximum interest rate is 8.80%.

Prepayment or Foreclosure Charges

There are nil pre-closure charges.

Approval Process

Approval process of a home loan is a little different and takes some time. Once an application has been accepted, the bank sends their people to analyze the property and then submit the report to the bank. In accordance with the report the bank concludes whether a loan can be given or not, how much can be given and at what rate. This process takes time and may take weeks or even a month. The process can be quick in metros and differ in different parts of the country.

Processing Fees

Nil

Property Insurance

You will have to pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy alive at all times during the tenure of the loan.

Statutory Charges

Charges on account of stamp duty, maintenance on demand (MOD), memorandum of mortgage (MOE), Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory bodies + applicable taxes will have to be paid.

Eligibility For Salaried Individuals:

Present Age and Remaining Working Years: The age of the applicant plays a major role in determining home loan eligibility. The maximum loan term is generally capped at 30 years. A borrower must finish all the EMIs by the time he/she turns 70.

Age Limit:

Minimum Salary: A minimum of INR 10,000 p.m as of bank’s last updated information.

Minimum Income for Self-employed: INR 2 lakh per annum as of bank’s last updated information.

Maximum Loan Term: 30 years.

Financial Position: The current income and the income prospects of an individual are given great importance while sanctioning a loan.

Past and Present Credit History and Credit Score: Credit score of a person is another important thing considered while giving a loan.

Other Financial Obligations: Ongoing loans, like car loan, credit card debt, etc, are all taken into consideration.

Repayment: EMIs can be repaid by opening a savings account in the bank and then making the bank debit the money on a monthly basis from there.

Facility for Farmers: Repayment is also allowed in half-yearly installments coinciding with the harvest.

Salaried Individuals

• Latest three months salary slips and latest one month salary slip for guarantors.
• Latest Form 16 & ITR of the applicants and guarantors (if any )
• Copy of employee identity card.
• Appointment or increment letter as evidence of employment.
• Six months bank account statement of the salary account.

Self-Employed Individuals

• Computation of Income of the last two years in the form of balance sheet and profit and loss account.
• Income tax returns of the last two years for applicants.

Business proof

•  Gumasta license, registration certificate.
• IT assessment, clearance certificate, income tax challans, TDS certificate (Form 16A), Form 26 AS.

Agriculturists 

• Gram sevak, village revenue officer certificate for previous two years income and block revenue officer certificate for last year’s income.
• Land revenue records – Form 6, 7, 12, 8A.
• 12 months bank account statement.

• One can apply online for these home loans or by visiting a branch of the bank.
• The home loan balance transfer facility is available on an existing loan at a lower interest rate.
• Top-up on existing home loans is also available.

Any borrower can buy a personal loan insurance policy from the bank or a service provider acceptable to the bank to safeguard himself or herself from paying the loan in case coming across any incapability like death, critical illness, permanent disability, job loss etc.

Borrowers pay a separate premium for this insurance and in case they face any of the above issues, the insurance pays the rest of the amount and the balance is paid to the nominee of the account holder.