Bank of Baroda Home Loan: BOB extends an invitation for you to become a proud homeowner with the ease of a Home Loan tailored to fit your budget. benefits of bob home loan
Bank of Baroda’s journey, BOB Home Loan Advantage commencing in 1908 from a modest structure in Baroda and culminating in its modern, state-of-the-art Baroda Corporate Centre in Mumbai, is a remarkable story of foresight, innovation, financial responsibility, and corporate excellence.
Bank Of Baroda Home Loan 2023
Bank of Baroda provides a range of home loan options, including the “Bank of Baroda Home Loan.” Please review the key features of the BOB Home Loan listed below.
- This loan is designed for various purposes: purchasing a plot for house construction, acquiring or constructing a house/flat, and renovating/repairing/altering/adding to an existing house/flat.
- The maximum loan amount is Rs. 500 lakhs, with repayment periods of up to 30 years, along with reasonable margins and nominal processing fees. There are no commitment or administrative charges.
- The BOB Home Loan offers highly competitive interest rates, currently leading the industry.
- It provides the flexibility of different EMI amounts for various periods during the loan tenure, tailored to suit the customer’s repayment capacity.
- Prepayment of the BOB Home Loan is permitted, and there are no prepayment charges under the floating rate option.
- Interest is calculated on a daily balance basis, providing a significant advantage to customers by reducing the interest amount.
- Bank of Baroda extends Home Loans to NRIs and Persons of Indian Origin.
- Streamlined application forms and procedures are in place for customer convenience, ensuring speedy approvals.
- Customers may benefit from a free Personal Accident Insurance cover, subject to bank discretion.
- Additionally, BOB Home Loan offers the option of Life Insurance Cover for loan protection.
- For more comprehensive information about the BOB Home Loan, please visit your nearest branch and take the first step towards owning your dream home.
Contents
Reasons For Availing a BOB Home Loan 2023
Before visiting a Bank of Baroda branch, please determine the purpose for which you require a loan, as BOB provides home loans for the following purposes. The bank also extends the following benefits when you avail a home loan:
- Buying a new or pre-owned residential property.
- Constructing a house.
- Acquiring land to build a house.
- Settling an existing loan obtained from another Housing Finance Company or Bank.
- The repayment period can extend up to 30 years under the floating rate option.
Read More: BOI Home Loan Interest Rate 2023?: घर बनाने के लिए लेना है होम लोन तो यही से जान लो पूरी जानकारी
Bank Of Baroda Home Loan Interest Rate
Utilize the Bank of Baroda Home Loan EMI Calculator for Various Loan Durations
Calculate EMI for different Home Loan amounts and tenures with an 8.60% interest rate.
| Loan Amount (Rs.) | Loan Tenure | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| 2,500,000 | EMI | 24,839 | 21,934 | 19,489 |
| 5,000,000 | EMI | 49,678 | 43,867 | 38,978 |
| 7,500,000 | EMI | 74,516 | 65,801 | 58,468 |
| 10,000,000 | EMI | 99,355 | 87,734 | 77,957 |
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As illustrated in the table above, EMI values vary for different loan amounts at the lowest interest rate, depending on the chosen loan tenure of 15, 20, or 30 years. Shorter loan tenures, such as 15 years, result in higher EMIs, while longer tenures, like 30 years, lead to lower EMIs.
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It’s essential to note that your EMI includes both interest payments and principal repayments. Although the total EMI remains constant, the distribution between interest and principal within each EMI changes every month. Over time, the proportion of principal repayment within each EMI increases, while the interest component gradually decreases.
Calculate Home Loan EMIs for a loan amount of Rs. 1 Lakh at the lowest interest rate of 8.65% provided by Bank of Baroda, considering various tenures.
| Loan Tenure | Loan Amount (Rs.) | EMI for a Rs. 1 Lakh Loan at 8.65% Interest Rate |
|---|---|---|
| 5 years | 1,24,000 | 2,059 |
| 10 years | 1,50,000 | 1,248 |
| 15 years | 1,79,000 | 994 |
| 30 years | 2,81,000 | 780 |
As indicated in the table above, longer loan tenures result in lower EMIs. However, it’s crucial to note that the total interest paid on a long tenure loan is substantially higher. For instance, in the provided example, if you opt for a Rs. 1 Lakh loan with a 30-year tenure, you will have the lowest EMI of Rs. 780. Nevertheless, you will end up paying a significant interest amount of Rs. 1.81 Lakh on a loan of Rs. 1 Lakh.
Conversely, when you opt for a Rs. 1 Lakh loan from Bank of Baroda with the lowest available interest rate for a 15-year duration, you will have a higher home loan EMI of Rs. 2,059. However, the total interest paid amounts to only Rs. 23,540, which is less than half of what you would pay in a 30-year loan. Therefore, it is advisable to make a prudent choice regarding your loan tenure, as longer tenures result in higher overall interest expenses.
BOB Home Loan Advantage
- BOB Home Loan Advantage: loan amounts up to Rs. 75 Lacs, the Rate of Interest (ROI) is the same as that applied to regular Home Loans, i.e., based on the Base Rate (currently 9.60%).
- For loan amounts exceeding Rs. 75 Lacs, the ROI is 0.25% higher than the ROI for regular Home Loans, which is the Base Rate plus 0.25% (currently 9.85%).
For information on processing charges, please click here.
Bank of Baroda Home Loan Eligibility
In case of Salaried:
| Monthly Income | Modified Criteria |
|---|---|
| Up to Rs. 20,000/- | 36 times of monthly income |
| More than Rs.20,000/- & up to Rs. 1 lac | 48 times of monthly income |
| More than Rs. 1 lac | 54 times of monthly income |
For individuals such as professionals, self-employed individuals, businesspersons, and the like, the eligibility is determined as five times their average annual income from the last three years.
Margin
| Category of Home Loan | LTV (%) | Margin (%) |
|---|---|---|
| Up to Rs. 30 lakh | 90% | 10% |
| Above Rs. 30 lakh and up to Rs. 75 lakh | 80% | 20% |
| Above Rs. 75 lakh | 75% | 25% |
- To secure the loan amount, the bank will establish an equitable mortgage on the residential property or other appropriate collateral.
- No fees will be imposed for either partial or complete prepayment of the loan.
- Repayment of the loan can extend up to a maximum of 30 years under the floating rate option, with consideration given to the borrower’s retirement age (salaried individuals) and an upper limit of 70 years for others.
Benefits Of BOB Home Loan
- Free Personal Accident Insurance is provided for a specified duration.
- Home Loan borrowers (first borrower) with a loan limit of Rs. 2/- Lacs and above receive a complimentary BOBCARD credit card for the first year.
- Car Loans come with a 0.25% reduction in the interest rate.
- Loans for consumer durables offer a 0.50% interest rate concession.
- The Baroda Additional Assured Advance (AAA) top-up loan can be availed up to 5 times during the loan period (Minimum Rs.1/- Lac, Maximum Rs.200/- Lacs, or 75% of the residual value of the house property after deducting 150% of the outstanding loan amount of the existing Home Loan, whichever is lower).
- As per current income tax provisions, interest on loans up to Rs. 1.50 lacs per annum is exempt from income tax (Under section 23/24 (1) of the Income Tax Act). An additional interest deduction of up to Rs. 1 lac is available to individuals taking a loan for their first home, up to Rs. 25 lacs, during March 2013 to February 2014
How To Apply For Bank of Baroda Home Loan
- Home loan applications can be submitted online or in person at a bank branch.
- Existing home loans can be transferred to avail a lower interest rate.
- Additional funds can be borrowed on top of existing home loans.
- Apply Link check Now
BOB Home Loan Special Advantage
- The Home Loan sanctioned will be associated with a Savings Bank Account.
- BOB Home Loan Advantage The interest rate on this Savings Bank account will be set at Zero.
- Under this scheme, the borrower has the option to consolidate all their savings in the linked Savings Bank account to maximize interest benefits on the Home Loan account.
- Any credit available at the end of the day will be considered as a credit to the linked Home Loan account. Consequently, the borrower will receive interest benefits in the Home Loan account equivalent to the daily outstanding balance in the Savings Bank account.
- The borrower will deposit the Equated Monthly Installments (EMIs) into the linked Savings Bank account.
- The repayment of EMIs will be automatically recovered from the linked Savings Bank account.
Eligibility for the Baroda Home Loan Advantage will be determined following the existing guidelines of both the Baroda Home Loan for Individuals and the Baroda Home Loan for NRI/PIO.
FAQ?: Bank Of Baroda Home Loan
The eligibility criteria specify a minimum age of 21 years and a maximum age of 70 years.
By calculating the EMI, you can assess your ability to make the payments and, if necessary, adjust the loan amount accordingly.