Established in 1908 by the Maharaja of Baroda, Bank of Baroda (BoB) is one of the top ten nationalized banks
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and second largest bank by assets in India. As of 2017, the Indian state-owned banking and financial services company has 5538 national and international branches.
The bank’s exhaustive list of products and services include personal & corporate banking, loans, wealth management, and investment banking. With over a century of
experience, Bank of Baroda has been a long-time and trusted partner of millions of customers worldwide.
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Best-selling home loan products are the ones that are flexible and more inclusive in terms of loan amount, loan term, interest rates, and repayment clause. BOB’s most popular products include Baroda Home Loan, Baroda Home Loan Advantage and Baroda Pre Approved Home Loan that have the above-mentioned key features.
The interest rate options for you depends on your loan amount
Eligibility
Income
Two factors play a huge role under this eligibility category. First, the net annual income of the borrower, which acts as a deciding factor in whether or not a person is eligible for a home loan. Second, a person’s repayment capacity of EMIs, which is determined based on employment/work history, net monthly income (NMI) of salaried applicants and net annual income (NAI) of non-salaried applicants.
All lenders including BoB scrutinizes the applicant's Net Monthly income, ie. income after deducting taxes, other EMIs and deductions. The income details provided by the applicant has to backed by an Income Tax Return (ITR) and/or TDS certificate Form 16. If a borrower has other sources of income such as rent or interest, then banks request receipt of that income to reflect in the bank statement.
As for the repayment capacity, below is a table that illustrates the correlation between income and EMI:
Monthly Income (Salaried)
Maximum deductions allowed including EMI (in %)
NMI less than Rs. 20, 000
50%
NMI above Rs. 20, 000 (< Rs. 50,000)
60%
NMI above Rs. 50, 000 (< Rs. 2 lakhs)
65%
NMI above Rs. 2 lakhs (< Rs.5 lakhs)
70%
NMI Rs. 5 lakhs and above
75%
Annual Income (Non Salaried)
Maximum deductions allowed including EMI (in %)
NAI of up to Rs. 6 lakhs for last 2 years
70%
NAI of more than Rs. 6 lakhs for last 2 years
80%
Employment history and Age
Type
Employment Status
Age
Resident Indians
Salaried resident Indians should be employed for 1 year and non-salaried for the period of 2 years
Minimum: 21 years for borrower, 18 years for co-applicant
Maximum: 70 years* (i.e. the age by which the loan should be fully repaid. Refer to the note below)
NRIs, PIOs, and OCIs
Salaried NRIs must have held a regular job or work permit for past 2 years
Self-employed or business person must have stayed abroad for past 2 years
Minimum: 21 years for borrower, 18 years for co-applicant
Maximum: 70 years* (i.e. the age by which the loan should be fully repaid. Refer to the note below)
* Maximum age: The maximum age limit is set by banks, which restricts the loan repayment tenure. While most banks have set the loan repayment age limit at 60 years, BoB has set the age limit at 70 years. This would allow borrowers to have an extra 10 years to repay the loan. For example: If a 50 year old old needs a home loan, BoB’s product would come with 20 years (maximum) repayment tenure. On the other hand, other bank’s home loan would have to be repaid within or by 10 years (maximum).
Credit History and CIBIL Score
Banks rely on the loan applicant’s credit score to verify their creditworthiness. In India, CIBIL (Credit Information Bureau of India Limited) assist banks by providing them CIBIL credit score of individuals. For the same, the credit history of potential borrowers is thoroughly scrutinised. This includes combing through the applicant’s past & current secured and unsecured loans, ongoing loan applications, credit cards and other payment history.
Needless to say, CIBIL score is a crucial factor to become eligible for a Bank of Baroda Home Loan. The rate of interest of BoB’s loans varies according to the applicant’s CIBIL score.
Below is table that illustrates the correlation between an applicant’s CIBIL score and the rate of interest offered:
BoB Home Loan Product
CIBIL score
Interest rate (in %)
Baroda Home Loan/ Baroda Home Improvement Loan
Above 760
8.30%
Baroda Home Loan/ Baroda Home Improvement Loan
725 and above but less than 760
8.55%
Baroda Home Loan/ Baroda Home Improvement Loan
675 and above but less than 725
9.30%
Baroda Home Loan/ Baroda Home Improvement Loan
0 or -1
8.55%
Borrowers must pay heed to the following factors to earn and maintain a favourable credit score:
Credit limit usage
Previous loan applications
Balance between secured and unsecured loans
Repayment record and payment history
BoB doesn’t dismiss applicants at the very first sight of a red flag (as per prescribed format of a loan application). The bank could overlook a previous repayment default if BoB determines that the borrower isn’t responsible for the non-payment. For instance, default in previous repayment might occur if the salary account was changed but the lender didn't/couldn’t update his/her bank record within the stipulated time.
As mentioned above, if an applicant’s credit history shows too many unsecured loans, then it affects their credit score. But BoB studies the borrower’s history to discover if the nature of the job demanded taking multiple loans and whether the loans were paid off without any delay. Therefore, it is possible to get a reasonable interest rate while applying for BoB home loan in spite of low credit score, as long as the spikes in the payment history are justified.
Property
The loan amount approved by a bank also depends on the value of the borrower’s purchased or constructed property. It is not possible to borrow money that equals to 100% of the property value from banks. Applicants can get up to 90% finance through home loans. The rest, which is termed as ‘margin money’ accounts for the down payment that the borrower has to arrange from their end.
BoB’s Loan to Value (LTV) Ratio is listed below:
Loan Amount
Margin Money
LTV Ratio
Up to Rs. 30 lakhs
10%
90%
Above Rs. 30 lakhs and up to Rs. 75 lakhs
20%
80%
Above Rs. 75 lakhs
25%
75%
As security on loan, the property (against which the loan is taken) is mortgaged, whether it is under construction or ready for possession.
Documents Required
KYC Proof
PAN Card is mandatory for loan application above Rs. 10 lakhs
Proof of Identity – Any one of Driver’s License, Voter ID, Passport, Aadhar Card
Proof of Residence – Any one of Driver’s License , Ration Card, Voter ID, Passport, Aadhar Card, Registered Rent Agreement
NRIs, PIOs, OCIs also need to submit a copy of Passport with Visa stamped and proof of residence in India and abroad
Income Proof
Salaried
Salary Slips of last 6 months and last 1 month for guarantors
Income tax returns (ITR Verification Report) and Form 16 for past 2 years
Copy of Employee identity Card provided by Employer
A proof indicating the duration of employment, like promotion, appointment, promotion or confirmation letter
Last 6 months’ bank account statements – Salary Account or Individual Account
Applicants (with previous loans) are required to submit all loan account statements for last 1 year along with sanction letter
Proof of assets and saving scheme certificates/policies held like Life Insurance Corporation, National Savings Certificate, Kisan Vikas Patra, Mutual Funds, Properties and others
Non Salaried
Last 2 years’ Balance Sheet & Profit & Loss A/c, Computation of Income, in case of self-employed individuals, professionals and others
Income Tax Returns of last 2 years, 26 AS, TRACES
A business proof such as Gumasta License, Registration Certificate, Service Tax Registration and other such licenses/certificates
Either one of IT Assessment/Clearance Certificate, Income Tax Challans, TDS Certificate (Form 16A), Form 26 AS for income declared in ITR
Business applicants that are a part of a partnership firm must submit the company’s PAN card, an address proof of the company and other essential business documents
Applicants (with previous loans) are required to submit all loan account statements for last 1 year along with sanction letter
Proof of assets and saving scheme certificates/policies held like Life Insurance Corporation, National Savings Certificate, Kisan Vikas Patra, Mutual Funds, Properties and others
Residence Proof
Agreement for Sale
Original Title Deed of the property offered for mortgage
Paid receipt of latest maintenance and taxes
Society Registration Certificate, if the loan is for a ready old flat/house
Non-encumbrance certificate from co-operative housing society
All (new & old) payment receipts to builder/seller
Permission to create equitable mortgage from the co-operative housing society
Title Clearance Report from approved advocate
Fees and Charges
Bank of Baroda levies a consolidated processing fee on its home loan borrowers that includes a range of charges.
This fee is a non-refundable, up front charge that has to be paid along with the loan application. It excludes Goods and Services Tax (GST).
Home loan processing charges (here you can insert the link) of Bank of Baroda includes the following:
Processing Charges
Documentation Charges
Document Verification charges
Pre- Inspection (Contact Point Verification-CPV) charges
One-Time Post Inspection Charges
Advocate Charges for Legal Opinion
Property Valuer Charges for Valuation
Bureau Report Charges
Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) Charges
ITR Verification Charges
No processing or documentation charges are applicable for Loan/Overdraft against BoB’s own deposits. In case of Term Loan or Demand Loan accounts, no review or renewal charges are levied on borrowers.
Please refer to the table below to view BoB’s Home Loan fees and charges:
Loan Product
Charges
Baroda Home Loan and Baroda Home Improvement Loan
Loan upto Rs.50 lakhs - 0.50% of the loan amount
Minimum: upfront fees Rs.7,500
Maximum: Rs.12,500
Loan above Rs.50 lakhs - 0.25% of the loan amount
Minimum: upfront fees Rs.7,500
Maximum: Rs.20,000
Baroda Top-up Loan
0.25% of the loan amount
Minimum: upfront fees Rs. 5000
Maximum: Rs. 12500
Pre-approved Home Loan
An upfront fee Rs. 7500 is applicable.
The balance amount of the unified processing charges as per the loan amount has to be paid once the borrower submits the property documents within the validity period of the pre- approval letter.
Baroda Ashray (Reverse Mortgage Loan)
0.20% of Loan amount
Minimum: upfront fees Rs. 7,500
Maximum Rs.10,000
Baroda Home Loan Suraksha Personal Loan
Interest Subsidy Scheme For Housing the Urban Poor (ISHUP)
Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)
Pradhan Mantri Awas Yojana (PMAY)
*Please note: BoB offers 100% waiver on all Baroda Home Loan options and Baroda Top-up Loans. However, it is subject to recovery as out-of-pocket expenses. The charges are Rs. 7500+ GST for Baroda Home Loan variants and Rs. 5000+GST for the Top-up Loan.
How to Apply
Bank of Baroda has an easy home loan application process. To apply for a home loan at BoB, one can either:
Fill up the ‘Apply Now’ form available online on their website. The borrower is required to enter details such as name, email id, mobile phone number and state they live in
Borrowers could give a missed call on 8467001111 to express their interest in exploring home loan options offered by BoB
Walk-in to the nearest Bank of Baroda branch
The loan officer or the bank’s representatives would call/meet the potential clients in response to these online, telephonic or personal home loan enquiries.
Once the applicant has narrowed down on the BoB home loan product they would like to apply for, the next step is to fill up the application form. The extensive home loan application form with multiple pages requires applicants to furnish clear, correct and true details.
The most important sections of the form are as follows:
Personal details
Employment details
Income and expenses details
Credit card details
Outstanding loan details
Information about guarantor or co-applicant
Details of movable assets
Details of liabilities
Proposed loan details
Property details proposed for the loan
The above mentioned sections feature in the standard application form meant for Resident Indians. The contents of the form might vary for NRIs, PIOs and OCIs. It might also vary according to the type of home loan.
The filled application form is then dispatched to BoB’s central home loan processing centre, situated in Baroda. It is in this Baroda centre that the loan officers scrutinize each application and take the final call.
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Home Loan Takeover
Home loan takeover is refinancing the loan with the help of another bank, if it comes with one or more benefits. The existing loan is foreclosed by completing the formalities, as specified by the existing lending bank. This usually entails that the new lending institution pays off the outstanding principal amount to the existing bank.
A new loan agreement is then drawn out between the new bank and the borrower. This agreement specifies the renewed interest rate, outstanding loan amount, loan tenure and EMI.
Consider transferring your home loan to another financial institution or bank if it provides any valuable benefit. The benefit could be:
Lower interest rates
Option of availing a higher loan amount, if you apply for a top-up loan and are eligible for it
Lower EMIs
Longer loan repayment tenure
You can transfer your home loan to Bank of Baroda to take advantage of its competitive interest rates. In case of takeover of home loan by BoB, the borrower has to pay Rs. 7, 500, plus service tax as upfront processing charge. However, home loan takeover fees and charges are subject to change at the sole discretion of the bank. Please consult your bank or home loan consultant to know the latest fees/charges.
The loan application approval procedure, eligibility criteria and documents required to process the loan takeover is same as any standard Bank of Baroda home loan product.However, additional document(s) would be required that acts as a proof of the loan transfer and to release the submitted property documents.
Foreclosure letter, which is a consent letter given by the previous lender to the new lender with the outstanding loan amount, is one such document. The loan statement, bank statements of the account from which the last 12 months’ EMIs were deducted, and a list of property in possession of the existing lender on the bank’s letterhead are a few of the other documents that the borrower would have to submit.
How much Loan Amount do you need?
The interest rate options for you depends on your loan amount
Income
Employment history and Age
Credit History and CIBIL Score
Property
