How to apply for Bank of Baroda home loan 101% Approval: Your wait to accomplish your dream to own a home can be turned into reality sooner with the convenient and low-interest rate home loans by the Bank of Baroda.
Whether it’s about purchasing a house, an apartment, or even the construction of your dream home, Bank of Baroda home loan has varied types of home loans serving your interest.
In case you are interested in knowing the different home loan schemes by the Bank of Baroda, then you are at the right place.
In this article, we are going to provide you with in-depth details for the same. So before any further ado, let’s dive right in.
Different types of Bank of Baroda home loans
There are 9 different schemes that are available for Bank of Baroda home loans. Let’s have a closer look at all of them:
- First is a general bank of Baroda home loan with which one can purchase either a new or a previously owned property, it also covers under construction holdings.
- Second, the bank of Baroda home loan is meant for that piece of land where the construction of a house can take place.
- Third, Bank of Baroda Home Loan to acquire that piece of land, on which one would set up any property within the time of 36 months.
- Next, The Bank of Baroda home loan to add to the existing size of your property like constructing extra floors in the house, etc.
- Bank of Baroda also extends loans for the renovation purpose that is extending money to cover the costs of renovating the already constructed house.
- The bank offers an amazing scheme where one can take another loan additionally to the already existing Home Loan.
- The bank also offers one to transfer his loan to this bank and hence accrue benefits of low-interest rate.
- Under Pradhan Mantri Awas Yojana, the bank offers one subsidized rate of interest on his Home Loan. This type of bank of Baroda home loan is beneficial for those who fall under the Economically Weaker Section (EWS) category.
- Another type of home loan offered is a pre-approval loan, under which one could decide on their property afterward and get the loan approved beforehand.
What are the Documents Required for Application Of Home Loan?
Different documents required for a general home loan include:
- A correctly filled application with proper signatures can either be obtained from the nearest branch of the Bank of Baroda or the website.
- The next requirement is 2 photographs which must be passport-sized; one of them must be attested.
- One photocopy of any ID proof document that can be Aadhaar Cards, PAN cards, driver’s licenses, etc. That document must be a government verified document with one’s photograph on it.
- Then an age proof document is also required to check the eligibility for the loan, this could be one’s Aadhaar Card, driver’s license, birth certificate or passport, etc.
- Another necessity is an address proof document, this could be one’s passport, bank passbook, Aadhaar card, etc. The permanent address will be checked in the document.
Copy of all the above-mentioned documents is required.
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Bank Of Baroda Home Loan
If one wishes to buy his residence then choosing Bank of Baroda Home Loan is an appropriate choice.
This general home loan is combined with many special features and can prove to be beneficial for many, dreaming of owning a house.
The housing loan can be utilized for various purposes.
For instance, one could purchase a plot, flat, construct one’s residence and even expand the existing size of his residence with the help of the home loans offered.
Bank of Baroda Linking Home Loan to the Saving Account
The bank provides various facilities and offers some convenient ways to get a loan that suits one’s pocket. Under this type, the loans extended would be linked with the borrower’s savings account.
The credit that will be available in the savings account by the end of each day will be enumerated for credit in the linked loan account.
Resultantly, the interest amount would be reduced in the loan account but only to the limit of the credit balance that will be outstanding daily.
This way the borrower can accrue the benefit of a reduced interest rate by depositing the money with him on the savings account linked to the loan account.
Even the Equated Monthly Instalments (EMI) will be deposited into that savings account that was linked.
What’s the Bank of Baroda home loan interest rate being charged?
The rate of interest charged varies according to the amount of loan, till the limit of ₹75 lakhs, interest rates will be the same as on general home loans.
For the sum above ₹75 lakhs, 0.25% extra is charged along with the rate on the regular home loan.
Bank of Baroda home loan interest rate depends on the Repo Lending Rate of the bank and therefore the rates change every month.
For the transfer home loan scheme, service charges will be applicable which would be excluding GST, the amount would be flat ₹8,500.
What are the Convenient Facilities offered?
The amount in the savings account of the borrower will be allowed to be withdrawn on the demand of the holder.
Thus, the borrower can use a chequebook, debit card facilities, ATM or even online banking facilities, etc. according to the general bank rules.
Charges for using any of the facilities will be applied to the savings account only.
Bank of Baroda Transfer Home Loan Scheme
Under this scheme, one can transfer their home loan that was taken from any institution or individual to this bank.
Bank of Baroda home loans come with exclusive features and offer various benefits one can avail easily.
What’s the Bank of Baroda Home Loan Eligibility?
Bank of Baroda home loan eligibility criteria is comprehensively explained & with much clarity as the eligibility has different domains of age, minimum income, bank civil score, residence, etc.
One can avail of a loan for various purposes such as:
- Buying a new or old residence
- For the construction of their property
- Buying a piece of land for construction purposes.
- Paying back a loan borrowed from HFCs or any other Bank.
- The loans are given with a repayment tenure of a maximum of 30 years.
- Borrowers can either be Individuals; single or even borrowing jointly.
Hindu Undivided Families should not apply.
For security purposes, banks mortgage the property that has been either constructed or purchased.
In case, the mortgage is not possible, the Bank can decide and might keep insurance policies, equity shares, gold, debentures, or govt. promissory notes etc. as collateral.
Applicants residing either in India or outside India can apply for home loans, and they can even transfer their loans from other Banks, any House financing Companies, any Non-Banking Financial Institutions, or any financial institution, etc.
In case one has an ongoing home loan with a minimum of 12 EMIs paid, the bank offers an exclusive scheme where one doesn’t require to submit income documents.
Eligibility for Individual applicant
Approval of a loan is likely to happen in case of a strong CIBIL score, at least 701. The borrower should have completed his Moratorium period with the previous lender.
The transfer will be possible only when at least 12 EMIs have been completed.
The repayment method of the loan by the borrower must be satisfactory for the bank.
The minimum age of the borrower must be 21 years and the Co-applicant must be 18 years or above. The maximum age of the applicant must not exceed 70.
What are the Exclusive Benefits of Bank of Baroda Home Loans?
- Fortunately, the interest rates are quite low. •Besides the processing fee charges are also not of considerable amount.
- The Bank extends loan of the higher loan amount
- Bank also offers a Credit Card for which no charges will be levied.
- Loan Repayment tenures are quite long
- One can apply for a loan even when there’s an existing home loan
- Benefits of Linking Home Loan Account with the Saving accounts
- This would mean that the EMIs will be recovered automatically.
- One could benefit from a reduced rate of interest.
- This would mean the best utilization of idle money.
What are the features of Bank of Baroda Home Loan?
The amount of the home loan differs as per the residence and earnings of the applicants.
For example, in the case of semi-urban or rural regions, the maximum loan amount is ₹ 1 crore, whereas in cities the maximum amount lies between ₹5-10 crores. Like in Mumbai the max. The amount is ₹10cr.
Time-Period and moratorium
The period of loan extended differs based on the sum of home loans and the financial status of the borrower, though the maximum period does not exceed 30 years.
The moratorium period on the loans is extended maximum of up to 36 months.
Important Terms & Conditions
For under-construction property the moratorium period will be of 18 months, this also applies to the building of height up to the 7th floor and additional moratorium of a period of 6 months per floor but maximum the time limit is 36 months.
Bank of Baroda Home Loan Calculator
Bank of Baroda Home loan calculator is not complicated and very simple to understand.
You can easily know the EMIs amount, however, it is important to first know the approximate principal amount of the loan before using the calculator.
One must be clear about the EMI that one can pay, which largely depends on the income of the borrower.
There’s a formula used by the EMI calculator to obtain the EMI amount.
The first step is to write the principal amount of the home loan one requires, then the loan rate of interest, and then finally the loan’s period. The calculator will show the EMI amount within seconds.
Use of Bank of Baroda Home Loan Calculator
The calculator enables one to have a clear idea of the EMI one would be required to pay monthly.
One will easily be able to check if it is pocket-friendly or not. The calculator prepares one mentally and financially both.
With a calculator, there’s no requirement for manual calculations and hence no errors.
The loan amount is adjustable and the period can also be set by working out with different combinations of principal loan amount and tenure, to get a reasonable EMI amount.
Knowing all this information beforehand will enable one to plan their budget efficiently so that the EMI can be adjusted with other expenses.
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Key Points to Remember
Knowing the appropriate approach to apply for a Home Loan is important to get favourable chances of approval.
Consider some of the factors stated below before applying for the Bank of Baroda Home Loan.
- Check the lending rate the bank is offering and also the maximum amount of loan one can acquire based on your financial status.
- Credit scores should be considered as they must be at least 701 to get a reasonable interest rate on Home Loan.
- To increase credit score, one should repay any of the existing loans and outstanding credit card bills.
- To lower the EMIs significantly, choose a longer period loan.
Applying for a Bank of Baroda Home Loan is very simple and customer-friendly.
As every bank follows its regulation policy and has different parameters to know the worthiness of the borrower, the reason behind not getting approval for the loan can be somewhat common.
It could be because of a weak credit score, no financial stability, inadequate income, being employed in an unorganized sector, not fulfilling age eligibility, or residing at a defaulter address.
Keeping these few points in mind can prove to be of great benefit to you.