All About Bank of Baroda Home Loan


Bank of Baroda (BoB) was founded by Sayajirao Gaekwad II in the year 1908. It is one of the leading multinational public sector banks in India with its headquarter located at Vadodara. The Bank offers various products and services to various categories of society. Bank of Baroda Home Loan is one of the popular retail lending products by the BoB.

Features: Bank of Baroda Home Loan

  • Eligibility:
    • Salaried individuals, self-employed professionals and business owners are eligible for the loan.
    • Maximum age for salaried individuals is 60 years and for self-employed individuals and business owners, it is 65 years.
  • Purpose of loan: For purchase of new/old house, construction of house or purchase of house, and construction thereon.
  • Quantum: Maximum quantum of loan is Rs. 5 Crore for borrowers in rural/semi-urban areas and Rs.10/- crores for borrowers in metros. The eligible quantum is decided based on the income of the applicant. If there is a co-applicant then the quantum of loan can be enhanced. Either the spouse of the applicant or children below 50 years can be co-applicant provided the co-applicant has steady source of income.
  • Security: Mortgage of property
  • Rate of Interest: The bank offers ccompetitive rate of interest, which is 8.75% at present and is linked to Bank of Baroda’s 1 Year MCLR. The same was revised on 7 Jan 2019 and stands at 8.65%. Both floating and fixed rate options are available.
  • Repayment: Maximum repayment period is 30 years, and this includes holiday period. However, the repayment period should not exceed the retirement age of salaried individual on the date of maturity of the loan. In case of salaried individual, the maximum age is 60 years. In case the salaried individual is eligible for regular pension then the borrower can apply up to 70 years of age. In case of self-employed professionals the maximum age is 70 years.
  • Margin:
    10% for loans up-to Rs. 20 Lakh
    20% for loans above Rs. 20 Lakh and up-to Rs 75 Lakh
    25% for loans beyond Rs. 75 Lakh
  • Processing Fees:
    50% of the loan amount for loans up-to Rs. 50 Lakh with a minimum of Rs. 7500 and the maximum of Rs. 12500
    0.25% for loans beyond Rs. 50 Lakh with a minimum of Rs 7500 and the maximum of Rs 20000
  • Other benefits:
    • No pre-payment and part pre-payment charges.
    • Free Personal Accident Insurance for all Home Loan borrowers.
    • Concession in interest for Car Loans up to 0.25%.

Types of BoB Home Loans

Various kinds of Home Loans offered by Bank of Baroda are listed below:

#1. Baroda Home Loan Advantage

  • Home Loan is linked to a Savings Bank Account of the customer. This gives the advantage of crediting any excess cash to the Savings Account which will be drawn into the loan account. This reduces the burden of interest for the borrower. Also, the EMI is reduced instantly.
  • Regular EMI also will be drawn from this account. So, the borrower should ensure that there is sufficient balance in the account before the due date.

#2. Home Improvement Loan

  • Purpose of this loan is renovation/expansion of the present house. Existing Home Loan borrowers as well as new customers are eligible for this loan.
  • Maximum repayment period is 10 years. However, it should not exceed retirement age of salaried individuals and in case of self-employed professionals, the age should not exceed 70 years.
  • Quantum of loan is up-to 2 times the gross annual income in case of salaried individuals and 3 times average annual income for the past 3 years in case of self-employed individuals.
  • Margin at 25% of the project cost.
  • Minimum age of the applicant is 21 years, and in case of co-applicant it is 18 years.
  • Security is by way of mortgage of property.
  • Holiday period of 6 months or one month after completion of renovation whichever is earlier.
  • Processing charges are levied at 0.50% of the loan amount.

#3 Bank of Baroda Pre-Approved Home Loan

  • This is in ‘principle approval’ of Home Loan. This enables the borrower to decide the budget for purchase or construction of the house keeping in mind the quantum of loan sanctioned.
  • For availing this facility income proof has to be submitted. The quantum of loan is decided based on the income of the applicant.
  • Processing charges at 0.50% of the loan amount with a minimum of Rs. 7500/- is collected.
  • This approval is valid for 4 months. The applicant must start construction within 4 months of purchase of the house.
  • The remaining processing charges exceeding Rs. 7500/- will be collected at the time of availing of the loan.

#4. Baroda Home Loan Suvidha Personal Loan

  • This loan is issued for funding life insurance premium for group credit life insurance.
  • The maximum loan amount depends on the insurance premium.
  • This is offered along with Bank of Baroda Home Loan. Existing Home Loan customers should avail the facility separately.
  • The eligible amount is as per income criteria applicable to Resident Indians, NRIs, PIOs, self-employed professional and business owners.
  • 100% waiver of processing charges on various Home Loans/Top-Up loans.
  • If the borrower intends to close the Home Loan account, then this loan account also should be closed.
  • Repayment period set at 50% of the tenure of Home Loan.

#5. Bank of Baroda NRI Home Loan:

  • This facility is designed to suit the requirement of NRIs and PIOs.
  • This Home Loan offers free Personal Accident Insurance and Credit Card with a limit of Rs. 2 Lakh.
  • 25% interest concession for Car Loans.
  • Top Up Loan can be availed 5 times during the loan period.
  • Security by way of mortgage of property.
  • Maximum repayment period is 30 years. Repayment should be made through any payment channel from abroad or through NRE or NRO account.
  • NRIs and PIOs holding a valid Indian or foreign Passport can apply for this loan.
  • The quantum of loan is 48 months gross salary for salaried individual and 4 times average gross annual income for last 2 years.

Documents Required

One can apply for Bank of Baroda Home Loan by submitting copies of the following documents:

  • Address proof
  • Proof of identity
  • Passport size photograph
  • Form 16/IT returns
  • Passport
  • Property documents

Loan will be sanctioned after legal verification of property documents and studying the credit score of the applicant and the co-applicant. If everything is satisfactory the loan will be sanctioned within 6 days.