Bank of Baroda Home Loan
Home Loan Bank Information
Table of Contents
- Features of Bank of Baroda Home Loan
- Bank of Baroda Home Loan Interest Rates
- Bank of Baroda Home Loan Eligibility
- Bank of Baroda Home Loan Schemes
- Bank of Baroda Home Loan Types
- Bank of Baroda Home Loan for NRI or PIO
- How to Apply for Bank of Baroda Home Loan
- Document Checklist for Bank of Baroda Home Loan
Introduction
The Bank of Baroda a multinational financial service provider is functioning under the Government of India. As per the 2019 statistics, Bank of Baroda is ranked 1145 in the Forbes Global List. The bank operates in a PAN India level with 9583 branches in India and abroad. Following the State Bank of India and ICICI Bank, The Bank of Baroda is the third largest bank.
The Bank was founded by the Maharaja of Baroda, Gaekwad III and Maharaja Savajirao on the 20th of July in 1908 in Baroda in Gujarat. The bank was nationalized by the Government of India along with `13 other bank in the 19th of July 1969. Till date over 10 other banks have been merged with the Bank of Baroda.
Features of Bank of Baroda Home Loan
- Low – interest rates and processing charges
- Higher loan value when you add a close family member as co – applicant to your home loan
- Free credit card and insurance, in which you can fill in the premium with the EMIs
- Longer time periods up to 30 years
- Top – up loans, up to a maximum of five times
Bank of Baroda Home Loan Interest Rates
The rates are as of 2019
Marginal Costs Based Lending Rates (MCLR)
| Sr. No. | MCLR Benchmark | MCLR in % w.e.f. 07.07.2019 |
|---|---|---|
| 1 | Over night MCLR | 8.20 |
| 2 | 1 Month MCLR | 8.30 |
| 3 | 3 Month MCLR | 8.40 |
| 4 | 6 Month MCLR | 8.55 |
| 5 | 1 year MCLR | 8.60 |
| Rating | Advances : (Large and Mid – Corporate) | Non-regulated SME / SME Expanded Advances |
|---|---|---|
| CR – 1 | BR+ 1.50 % | BR+ 1.25 % |
| CR – 2 | BR+ 1.60 % | BR+1.35 % |
| CR – 3 | BR+ 2.10 % | BR+ 1.85 % |
| CR – 4 | BR+ 2.65 % | BR+ 2.40 % |
| CR – 5 | BR +3.50 % | BR+ 3.25 % |
| CR – 6 and below | BR + 5.90 % | BR+ 5.70 % |
The in-place tenure-based credit risk premium applies only for base rate concerned exposures which are as follows-
| Period | Tenure Premium |
|---|---|
| < 3years | NA |
| 3 – 5 years | 0.10 % |
| 5 – 7 years | 0.15 % |
| 7 – 10years | 0.20 % |
| >10 years | 1.00 % |
Interest rate charged for Mid or Large corporate or non-regulatory or SME related advances connected to MCLR w.e.f. 01.10.2017
| Rating | Large and mid-corporate advances | Non-regulatory SME/ SME Expanded Advances |
|---|---|---|
| CR – 1 | MCLR+1.25 % | MCLR + Strategic premium + 1.00 % |
| CR – 2 | MCLR+1.50 % | MCLR + Strategic premium + 1.25 % |
| CR – 3 | MCLR+2.70 % | MCLR + Strategic premium + 2.45 % |
| CR – 4 | MCLR+3.25 % | MCLR + Strategic premium + 3.00 % |
| CR – 5 | MCLR+4.10 % | MCLR + Strategic premium + 3.85 % |
| CR-6 and below | MCLR + 6.5 % | MCLR + Strategic premium +6.25 % |
Bank of Baroda Home Loan Eligibility
| S.No. | Criteria | Description |
|---|---|---|
| 1. | Who is eligible? |
All resident and non – resident Indians between 21 and 70 years of age are eligible for the loans.
|
| 2 | Loan Amount |
|
| 3 | Interest Rate | Linked to the one – year MCLR and is reset yearly |
| 4 | Tenure and moratorium |
|
| 5 | Collateral |
|
Bank of Baroda Home Loan Schemes
To cater to the diverse demands of the people, Bank of Baroda has formulated many schemes to suit everyone’s requirements. Here is a representation of the interest rates of the various schemes.
| Baroda Home Improvement Loan and BOB Home Loan |
1 year’s MCLR to 1 year’s MCLR + 1 % ( Based on the applicant’s risk rating) |
|---|---|
| Advantages of BOB Home Loan | Up to Rs 75.00 Lacs: Normal Home Loan Rate Above Rs 75.00 Lacs: 0.25 % over Normal Home Loan Rate |
| Baroda CRE Home Loan | 0.25 % over Normal Home Loan Rate |
| Advantages of Baroda CRE Home Loan |
For a loan amount of Up to INR 75 Lakhs, 0.25 % of Normal Loan Price For loan amount more than INR. 75 Lacs: 0.50 % of Normal Loan Price |
| Baroda Top – Up Loan (Resident or NRIs or PIOs) | Applicable ROI Plus Home with Loan Strategic Premium with 0.50 % |
Note: Additional Risk Premium @ 0.05 % over and above the applicable rates of interest on all variants of Home Loans including Top – Up Loans. However, this additional Risk Premium can be waived off as an incentive to the borrower who provides credit insurance cover for the loan for the entire tenure of the loan.
| Baroda Mortgage Loan |
Tenor up to 120 months interest rate – One year MCLR+ Strategic Premium + 0.95 % to One year MCLR+ Strategic Premium+3.50 % Tenor above 120 months interest rate – One year MCLR + Strategic Premium+1.20 % to One year MCLR + Strategic Premium + 3.75 % |
|---|---|
| Baroda Mortgage Plan- Non Individuals |
Tenor up to 120 months interest rate –
Tenor above 120 months interest rate-
|
| Baroda Traders Gold Card Scheme | 50 bps over applicable ROI on the sanctioned Overdraft facility under Baroda Traders Loan |
| Baroda Ashray (Reverse Mortgage Plan) | One year MCLR + Strategic Premium + 1.75 % |
|
Baroda Vidya (For school education from Nursery to XII) |
1 year MCLR + Strategic Premium + 2.50 %, 0.5 % Concession for girl students |
| Baroda Gyan (For Higher Studies in India) | 1 year MCLR+2.00 % p.a. (Including SP) – Irrespective of Loan Amount, 0.5 % Concession for girl students. |
| Baroda Education Loan to Students of Premier Institutions (For studies in India)(For regular courses) |
For List-AA Institutions: 1-year MCLR No special concession for girl students under this scheme. For List A Institutions: 1 – year MCLR No special concession for girl students under this scheme. For List – B Institutions Up to Rs.7.50 Lacs : 1 year MCLR + 0.75% Spread ( Including SP) Above Rs.7.50 Lacs: 1 year MCLR +0.50% Spread ( Including SP) No special concession for girl students under this scheme. For List -C Institutions Rs.7.50 Lacs : 1 year MCLR + 1.50 % Spread ( Including SP) Above Rs.7.50 Lacs: 1 year MCLR +1.25 % Spread ( Including SP) No special concession for girl students under this scheme. |
| Baroda Education Loan to Students of Premier Institutions (For Studies in India)(For Executive Development Program) |
For List-AA Institutions: 1-year MCLR No special concession for girl students under this scheme. For List A Institutions: 1-year MCLR No special concession for girl students under this scheme. For List-B Institutions Up to Rs.7.50 Lacs : 1 year MCLR + 0.75 % Spread ( Including SP) Above Rs. 7.50 Lacs: 1 year MCLR +0.50 % Spread ( Including SP) No special concession for girl students under this scheme. For List-C Institutions Up to Rs. 7.50 Lacs : 1 year MCLR + 1.50 % Spread ( Including SP) Above Rs.7.50 Lacs: 1 year MCLR +1.25 % Spread ( Including SP) No special concession for girl students under this scheme. |
Bank of Baroda Home Loan Types
BOB Home Loan Advantage – Main Home Loan by Bank
Facility – Home loan connected to a savings account
- Linked with the saving bank account
- Zero interest rate applicable to the SB account
- Borrower shall enjoy the option to deposit the entire his savings in linked SB account and exercise maximum interest benefit in Home Loan Account
- Equated Monthly Installments (EMIs) remitted into the concerned account
- Recovery of EMI made by auto-recovery method from linked SB account
Eligibility
- Resident Indians
- NRIs with Indian Passport or PIOs holding a foreign passport or OCI
Purpose
- Home purchase
- Residential plot buying
- Purchase of land and house construction
- Take over from other banks
- Extension of existing construction
- Expense reimbursement for construction from own sources
BOB pre – approved Home Loan
- Provides in – principle sanction for home loan even before the identification of site by the prospective buyer
- Allows greater flexibility in negotiations with builders
- Customer assured of eligible home loan price
- Loan eligibility: Based on income details of customer in accordance with Home Loan Scheme
- Documents- Income and repayment capacity (except property documents) need to be submitted for the pre-sanctioned letter
- Approval of in-principle is valid up to 4 months from issue date
- Processing charges- Rs.7500/- + Service Taxes
- Property papers to be submitted within 4 months to carry on to actual home loan sanction
BOB Home Improvement Loan
Renovation is indeed a costly deal, but it’s the road connecting dreams to reality. BOB gives wings to the dreams by offering easy-to-process and user-friendly loans.
Features
- Flexibility to spend
- Use the funds for any repair
- Increase your pocket limit and convert your home into the perfect well-suited modern living space
- Competitive Rates- Zero pre – closure charges, minimal processing fee and lucrative interest rates
- Insurance Cover
Eligibility
All resident or non-resident Indians are open to apply for this loan. They can be self-employed or salaried, but HUFs cannot apply for this program.
Maximum amount
- For semi – urban and rural areas- 1 crore
- Mumbai- 10 crore
- Other metro cities- 5 crore
Maximum moratorium period – 3 years
Maximum Tenure – 30 years
Floating rate policy applicable on home improvement plans.
Baroda Home Suvidha Personal Loan
It is mostly for financing the miscellaneous costs linked to a home purchase. It includes insurance-registration cost, stamp duty, GST and Membership fee.
Eligibility
- Prospective buyers for Home Loans from BOB
- Existing borrowers under the already existing home loan scheme
| Category | Purpose | Margin |
|---|---|---|
| A |
Group credit insurance ( premium ) Group credit health insurance ( premium ) Property insurance ( premium ) |
Nil, which means that the applicants can avail cent per cent finance. |
| B |
Stamp Duty and Registration prices GST Membership charges |
25 % margin on the eligible costs, which means the applicants can enjoy 75 % of finance |
Credit Risk Guarantee Fund Scheme For Low Income Housing ( CRGFS)
The trust is established and organised by Urban Poverty Alleviation and The Ministry of Housing under the aegis of the Indian government for guarantees in respect of low income home loans.
- The trust will provide risk guarantee for credit to the lending bodies on their home loan upto Rs. 5 lakhs in EWS/LIG category in urban settings, without any requirement of collateral or third-party intervention.
- The extent covered in the scheme is 90 % of amount default for a loan amount up to Rs 2 lakhs and 85 % when the loan value is between 2 lakhs and 5 lakhs.
Eligibility
- New Individual borrowers in EWS-LIG people applying for individual housing loan less than 5 lakh
- Housing unit up to 430 sq ft carpet area and to which housing loan is granted without collateral security or third party guarantee
- Eligible borrowers forming a housing society of at least 20 members will also be allowed in this scheme
- The borrower has to submit an application stating that he hasn’t availed any other loan
Activity
- Home Improvement
- Construction
- Acquisition and purchase of a living space involving a loan amount less than 5 lakh per person
- Loans under this scheme aren’t eligible for the Guarantee Cover
Baroda Top-Up Plan-Housing Finance Scheme for NRI or PIO
Eligibility- All existing loan borrowers including NRIs/PIOs, Staff members whose income and asset declaration is standard
Baroda Ashray (Reverse Mortgage Plan)
This scheme largely focuses on aiding the stream of cash flow of senior citizens to satisfy their financial needs.
Eligibility
- A senior Indian citizen, more than 60 years of age
- Married couples can apply if any one is 60+ years, and the spouse must not be less than 55 years during application time, for a joint account.
- Must own a residential place in India by his/her name
Security
Simple Mortgage of the residential property
Tenure
Usually 15 years, can be extended as per applicant’s discretion.
Insurance
Shall be regularly taken and premium to be managed by the owner.
Baroda Bank Home Loan Takeover Scheme-For high-net-worth individuals
Benefits
- Take over of home loans from other banks
- Get your loans switched to the Bank Of Baroda
- All resident and non-resident Indians eligible to avail loan under this scheme.
- Low-interest rates and processing charges
- You can enjoy the additional benefits of free credit card, insurance, a concession if 0.25 % for car loans and free accident insurance.
- The tenure is up to 30 years, and you can alter your EMI plan as per your comfort.
- You can apply for a top-up loan up to a maximum of five times.
Target Group
- Resident Indians
- Non-resident Indians having Indian Passports
- Persons of Indian Origin(PIO) having a foreign passport or Overseas Citizen of India (OCI)
- Staff members availing under Public Scheme
Age
Minimum- Borrower- 21years, Co – applicant-18years
Maximum- Up to 70 years
Conditions for Resident Indian to avail any home loan
- Applicant and the co – applicant, if present, whose income is considered to match eligibility criteria, should either be self-employed for at least 2 years or salaried for minimum 1year.
- Any break in service, if any, can be allowed up to a maximum period of 3 months
Bank of Baroda Home Loan for NRI or PIO
NRIs
- The applicant and the co – applicant, if present, whose income is considered to match eligibility criteria must be in a job abroad in a well – established Indian / Foreign company, organisation or government department through a valid job contract or a work permit for the minimum past 2 years.
- If not salaried, then the applicant should be employed or rather, self-employed, owning a business and has stayed abroad for a minimum of 2 years.
- A minimum annual income equivalent to 5 lakhs p.a of the applicant /co – applicant is required.
Persons of Indian Origin
- A citizen of any country apart from Bangladesh/Pakistan/Sri Lanka/ Afghanistan/ China / Iran/ Nepal or Bhutan if
- He held Indian passport at any point of time before
- He or either of his parents or any of the grandparents was an Indian Citizen in the context of the Indian Constitution-Citizenship Act, 1955
- The applicant can be the spouse of an Indian Citizen.
- Overseas Citizens of India (OCI)
- Under Section 7A of the Citizenship Act,1955, the applicant must be registered as an overseas citizen of India.
- The overseas citizen of India necessarily has to be a Person of Indian Origin.
- A foreign national, who was eligible to become a citizen of India, on 26.01.1950 or was a citizen of India on or at any point of time, after 26.01.1950 or could have belonged to a territory that became India’s part after 15.08.1947,their children and grandchildren, provided their country allows dual citizenship in any form under the local laws, qualifies for registration as an overseas citizen of India.
- Minor children of such people can also avail OCI registration.
- If the applicant had ever been a citizen of Pakistan or Bangladesh, he/she would not be considered for OCI.
Criteria for being a co – applicant
The close relatives can redeem themselves as a co – applicant in home loan.
The close relatives comprise of-
- Spouse
- Father
- Mother(including stepmother)
- Son (Could be a stepson)
- Daughter-in-law
- Daughter (Could be stepdaughter)
- Son-in-law
- Brother/Sister (Including stepbrother and stepsister)
- Brother’s wife
- Sister(including step-sister) of a spouse
- Sister’s husband
- Brother (including step-brother) of the spouse
If someone apart from this wants to be a co – applicant of the loan, then it can be considered only if the person is a co – owner of the property.
Maximum Limit
The general limit is as follows-
- Mumbai: INR 10crores
- Other Metros: INR 5crores
- Urban Areas: INR 3crores
- Rural areas and Semi-urban: INR 1crore
However, these limits are subject to an individual’s income and repayment capacity, along with the terms of LTV or Margin norms.
Repayment Tenure
- The maximum tenure till which the loan can be extended is 30 years, adding up a moratorium period of 3 years.
- The moratorium period is usually 3 years, but for under-construction houses and buildings up to the seventh floor, it is reduced down to 1.5 years. After that, per floor, 6 months of moratorium period can be added.
Repayment Capacity
The final deductions taking into account the said EMI must not exceed as the below-
Target-Salaried Persons
- GMI below INR.20,000 – 50 %
- GMI between INR.20,000 and 50,000 – 60 %
- GMI between INR.50,000 and INR 2 lakhs – 65 %
- GMI between INR 2 lakhs and 5 lakhs – 70 %
- GMI above INR 5 lakhs – 75 %
Target-Other Applicants
- Average annual income for previous two years within INR.6 lakhs – 70 %
- Average annual income for previous two years exceeding INR.6 lakhs – 80 %
Margin Norms and Loan to Value Ratio
| Loan Amount in INR | Margin | LTV Ratio |
|---|---|---|
| Upto INR.30 Lakhs | 10 % | 90 % |
| Between 30lakhs and 75lakhs | 20 % | 80 % |
| More than 75lakhs | 25 % | 75 % |
Age Criteria
Minimum: Borrower- 21years, Co – applicant-18years
Maximum: Upto 70 years
Security
- Mortgage of the property built or purchased
- If the mortgage doesn’t seem a feasible option, the bank at its discretion can accept security in kind, that is, insurance policies, promissory notes from the government, debentures and shares, gold ornaments, etc.
Repayment Terms
- Loan to be repaid through Equated Monthly Installments (EMI)
- In the case of farmers and agriculturalists, the repayment is adjusted to Half-yearly instalments in accordance with the harvesting and marketing of the major crops produced.
- The interest charged during the moratorium period has to be recovered in pace with the debit.
Pre – Closure Charges- Nil
Interest Rate
- Fixed-Rate Option: Stands withdrawn w.e.f. 01.07.2010
- Floating Rate- The prevailing floating rate, as per the daily reducing balance at monthly rests, determines the interest to be charged. The interest rate, linked to One Year MCLR of the Bank, is adjusted on an annual basis. The interest rate is decided concerning CIBIL bureau score of the applicant (ranging from a minimum of I year MCLR to a maximum of 1Year MCLR+1 %), open to timely revision by the bank.
Unified Processing Charges
The unified processing charges comprise of-
- Processing Charges
- Documentation Charges
- Document verification charges
- Pre-sanction inspection charges
- One-time post-inspection charges
- Advocate charges for a legal opinion
- Valuer charges for valuation
- Bureau Report Charges
- CERSAI charges
- ITR Verification Charges
Group Credit Life Insurance Cover
The Bank of Baroda in collaboration with M/s.India First Life Insurance Co. has tie-up arrangements for providing life insurance cover to home loan borrowers. This is, however, an optional scheme of life insurance at the cost of the borrower which could be funded by the bank when sanctioning the loan and is recoverable with the EMIs of the Loan.
The salient features of the group credit life policy offered by M/s.India First Life Insurance Co. are as follows-
- The scheme is optional in the interests of Home Loan Borrowers, and the borrower could choose the branch and the insurance type.
- It protects against unfortunate un-speculated events like death.
- The family of the borrower is not needed to bear the loan, in case of the death of the borrower.
- The insurance provider will pay the cover amount due as per the cover schedule.
- The slip of the account into the NPA category due to the borrower’s death can be avoided.
How to Apply for Bank of Baroda Home Loan
Buying a home is an important milestone in a person’s life, and home loan helps you achieve it.
The process of applying for home loan is intimidating for many. Too many people are unaware of how to even begin the process and what are its requirements, often estimating it as a herculean task.
BOB home loan process is one of the safest, easiest, and comprehensive methods to apply for a housing loan.
If you were looking for a one-stop spot to understand how to apply for a housing loan from Bank of Baroda, read on.
Check your Eligibility
Understand the factors that go into assessing your profile. The bank considers many factors to determine whether a loan can be given to you or not. Understand the relevant factors such as
- Your age
- Your net income
- Your credit history
- Your FOIR
- Your dependents
And how they all play a part in home loan process. Once you have determined whether you are eligible or not, proceed.
Apply for the Loan
Locate the nearest bank branch where you would like to apply for the loan or go online to the bank’s website.
Download the relevant form and fill it out with all the needed details. Once done, head towards the nearest bank.
Remember to carry the following along with your home loan application:
- Property registration documents
- Half-year bank statements
- Identify proof
- Proof of address
- Income Tax Returns for the previous 3 years.
Make sure you have all your documents with you.
Proceed inside the bank with a hardcopy of your application form and the rest of your documents.
The attendants at the bank will verify and check your documents and help you to the absolute best of their ability to understand and complete the whole home loan process.
Promising to be simple, straightforward and transparent, you will have your own home in no time.
Document Checklist for Bank of Baroda Home Loan
Finally, all that’s left to do is gather the correct documents, fill out the right forms and submit them to your BOB branch to initiate the housing loan process.
Documents required:
Address proof
- Registered rent agreement
- Electricity bill (going back 3 months old)
- Valid passport
Appointment letter at the place of employment (Required if working at the place of work for less than 1 year)
Financial documentation
- Form 16 going back 2 years
- Obligatory 3 months’ salary slip
- Obligatory 6-months’ bank statement
Identification proof
- Valid passport
- Driving license
- Voter ID
- Pan Card
Now that the common documents are out of the way, here are the documents specific to the housing loan process:
| Advance processing check | A cancelled check to validate your bank details |
|---|---|
| Filled out loan application | Enclose with single passport size photograph |
| Income proof | Consisting of salary slips, bank statements going back 1 year, and Form 16 |
| Investment proof | LIC mutual funds owned, with the relevant property documents |
| Proof of job continuity | A letter from HR, and an appointment letter from your place of employment |
| Photo proof | Passport-sized photos, Driving license, Voter ID, PAN card |
| Relevant property documents | Enclosed with sale deed, Katha, Transfer of Ownership |
| Proof of address | Sale Deed and Rental Agreement |
| Financial documents for self-employed individuals | Income tax returns going back 2 years approved by a CA |
| Financial documents for self-employed non-professionals | Income tax returns going back 2 years approved by a CA |
We are mostly done. But there are some additional documents for those individuals who are self-employed. They will need the following.
- Business existence proof
Company registration license, shop establishment act and 3-year-old Saral Copy
- Income proof
Income tax returns going back 3 years. Profit and loss account, income computation, audit reports, and company balance sheets
- Office address proof
Property documents and utility bill
- Office ownership proof
Property documents, utility bill, and maintenance bill
- Residence address proof
Registered rent agreement, utility bill, and license with single enclosed passport photograph
This concludes the checklist. Congratulations on initiating your home loan.