Bank of Baroda Home Loan Eligibility

Wide range of home loan schemes from Bank of Baroda Home Loans promise to cater to the distinct needs of varied home loan borrowers. With easy Bank of Baroda home loan eligibility conditions based on age, job profile, monthly income, value of property and credit score, one can be sure to bag the best home loan deal.

Bank of Baroda Home Loan Eligibility in India for 2021

Eligibility CriteriaBANK OF BARODA  Home Loan
Eligible Age of Borrower21- 70 years
Minimum Eligible Income₹ 10,000 and above
Work Experience for Salaried2 years
Business Stability for Self Employed3 years

Bank of Baroda Home Loan Eligibility- Based on Age

Since a housing loan is a long duration loan, the age of the borrower is a significant factor deciding the loan eligibility. A person with lower age has more number of working years for loan repayment. Hence, a person with a lower age is eligible for loans of the higher amount or longer tenure loans when compared to one with higher age. Your age plays a major role in determining your eligibility and repayment capacity for Home Loan.

At Bank of Baroda, the minimum age of an applicant should be 21 years of age at the time of loan commencement. The maximum tenure of a housing loan at Bank of Baroda is 30 years. However, for getting 30-year loan duration, the borrower's age at the time of loan commencement should not be more than 30-40 years in case of both salaried self-employed borrower's because the maximum age at loan maturity must not exceed 70 years.

Bank of Baroda Home Loan Eligibility- Based on Income

Your income is the most important determinant of the loan amount that you are eligible for. Higher the monthly income, higher is the loan amount sanctioned. However, one must note that only your net take-home salary (after deduction of PF, ESI, Tax, and other such deductions) is considered as your net monthly income. Gross salary is not considered for eligibility computations.

Your net monthly income determines your Home Loan servicing capacity. For example, if your net take-home salary is Rs 25,000 and the value of the property you wish to buy is Rs 40 Lakhs, then at an interest rate of 8.75%, which is currently offered by Bank of Baroda. The loan amount eligibility would be Rs 25.93 Lakhs to Rs 41.31 Lakhs depending on your age.

In this calculation, we assume that the applicant does not have any running equated monthly instalment (EMI). Now, if your monthly net salary is Rs 75,000, you might get eligible for a loan amount of Rs 51.86 Lakhs to Rs 82.62 Lakhs for same property at same rate depending on your age at the time of loan application.

Bank of Baroda Home Loan Eligibility: Based on Value of Property

Value of property: Value of the house or property that an applicant wants to buy determines their home eligibility as well. Bank of Baroda does not finance loan for the entire value of the property. The loan offered divided by the value of the property is called Loan-to-Value (LTV). Bank of Baroda provides Home Loan up to 90% LTV. The borrowers have to fund the remaining 10% on their own.

Co-applicant: Adding a co-applicant helps you to increase your eligibility for Home Loan as adding a co-applicant means additional repayment capacity. However, the co-borrower should have a regular income, low obligation, and a clean CIBIL record.

Property documents: Your property should have all relevant approvals and legal documents should be cleared by the bank's legal team.

Bank of Baroda Home Loan Eligibility: Based on CIBIL Score

CIBIL stands for Credit Information Bureau (India) Limited that records all your payment details pertaining to any loans and credit cards. Based on your past history of borrowing, CIBIL maintains a credit score. A person who has a record of repaying all loans and Credit Card payments on time and in full has a better CIBIL score as compared to ones who have defaulted. Thus, the CIBIL score enables a bank to understand the credit behaviour of a borrower. While checking eligibility for your Home Loan, Bank of Baroda checks not only the CIBIL score but orders a full CIBIL report that gives complete track record of your payment history pertaining to loans. If you have a higher credit score, the chances of you getting a higher loan amount increases. However, low CIBIL score will decrease your eligibility to get a Home Loan. At Bank of Baroda, the minimum CIBIL score required to get a Home Loan is 650.

Few factors that affect your credit score:

  • Late payments: In case of any defaults or failure to make full payment on time for your existing or past loans, your CIBIL score is impacted negatively and your chances of getting a higher loan amount eligibility reduces.
  • A high number of unsecured loans: Bank of Baroda prefers clients who maintain a balance between secured and unsecured loans. A higher number of unsecured loans can negatively affect your CIBIL score.
  • Usage of credit limit: The manner in which you handle Credit Cards or Personal Loans reflects your financial discipline. In case you frequently use the entire credit limit on your card or loans, it means that there is a case of potential financial stress and financial indiscipline on your part. Hence, that may reduce your CIBIL score.
  • Multiple loan applications: In case you apply for Home Loan at multiple banks simultaneously, it can affect your score negatively and reduce your CIBIL score.

Bank of Baroda Home Loan Eligibility Based on FOIR

FOIR stands for Fixed Obligations to Income Ratio. Calculation of the FOIR allows a bank to determine what proportion of income is currently being used up for monthly obligations. Fixed monthly obligations include rent, existing EMIs, and other such expenses. To get approval for a Bank of Baroda Home Loan, the FOIR of an applicant has to be 0.65.

Eligibility Criteria for Different Bank of Baroda Home Loan Schemes

Bank of Baroda has customized schemes designed for customer segments from all walks of society. Basic features of some of the more popular products as given below:

Baroda Home Loan:

 Avail Home Loans for the purchase of a new/old house, flat or plot, construction of a house on purchased plot, a home extension of the existing house.

  • Resident as well as non-resident Indians are eligible to avail this Home Loan
  • The loan is available to Indian Residents, NRIs and PIOs
  • You can avail a Top-up Loan up to 5 times during your loan period
  • The pricing is Risk-Based (Bureau score linked) for any Home Loan.
  • Maximum loan amount available is  10 Crores in Mumbai,  5 Crores in other metros and  1 Crore in semi-urban and rural areas.
  • You get loan repayment tenure of up to 30 years inclusive of a maximum 36 month moratorium period.
  • With Baroda Home Loan, you can get a free Credit Card and also a concession of 0.25% on Car Loan interest rates.
  • The bank also offers free accident insurance with its all Home Loan variants
  • You can also avail group credit life insurance when you apply for a Home Loan
  • Home Loan Balance Transfer facility available

Baroda Home Loan Advantage

Under this Home Loan scheme, Bank of Baroda links your savings bank account to your Home Loan account. Any credit balance in the savings account at the end of the day is credited to the Home Loan account so that your interest liability reduces. This scheme provides flexibility to use the surplus cash to reduce outstanding loan amount, yet, if required, you can use/withdraw the surplus cash.

  • Linking of savings account to the Home Loan account helps you to reduce interest on the Home Loan over the longer run.
  • Minimum age of the applicant at the time of loan commencement must be 21 years while the maximum age is 70 years at loan maturity.
  • Loan amount ranges from  15 Lakhs to  10 Crores
  • A maximum loan of 90% of the value of the property can be provided
  • Maximum loan tenure of 30 years

Home Improvement Loans

To improve the décor of your existing house or for adding an additional room or for a complete renovation, Bank of Baroda offers home improvement loans with attractive terms.

  • Existing Bank of Baroda Home Loan customers or new borrowers can avail this loan
  • This loan can be used to purchase consumer durable electrical gadgets like fans, geysers, furniture, fittings, and all other such goods.
  • All eligible Resident Indians can take this loan either singly or in a joint manner
  • The minimum age for this loan is 21 years for applicant and 18 years for the co-applicant.
  • Loan tenure is such that all repayment is to be done before the applicant's retirement age. The maximum age should be 60 years at loan maturity.
  • A salaried professional can apply for this type of Home Loan for an amount of up to 2 times of their gross annual income.
  • A self-employed professional/businessperson can apply for home improvement loans for an amount up to 3 times the average of their last three years annual income. The self-employed professional can also claim depreciation if he uses the loan for buying durables for his business purpose.
  • Since the loan is unsecured, the bank keeps the property under renovation as security
  • The maximum tenure for such a loan is 10 years
  • The bank charges a processing fee for this loan. The fees are 0.50% of the sanctioned loan amount.

Baroda Pre Approved Home Loan

A Pre-approved Home Loan by Bank of Baroda is an 'In principle' approval for a Home Loan based on the income profile of the applicant. The approval for this loan is valid for 4 months from the date of issue of the 'In principle' approval. This loan can be approved even before the actual purchase of a house and thus enables easy and faster loan processing. This loan has very attractive and affordable interest rates.

  • Salaried or self-employed individuals having at least  20,000 per month monthly income are eligible for this loan.
  • Before the finalisation of the property, one can take this loan so that the entire transaction of purchase of property can be done quickly without having to spend time getting a loan sanctioned later on.
  • The minimum age at the time of loan commencement is 21 years while the maximum age is 70 years.
  • Loan amount ranges between  15 Lakhs to  10 Crores
  • A maximum loan of 90% of the value of the property
  • Maximum loan tenure of 30 years

Baroda Top up Loan

Get a top-up loan (additional loan amount) on your existing Bank of Baroda Home Loan with this scheme to fund your personal financial needs.

  • Top up loan is available to all existing Home Loan borrowers including staff, ex-staff members, NRIs and PIOs.
  • The loan amount is based on the Standard Asset Classification

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

 It is a government-initiated housing loan scheme for urban poor - Low Income Groups (LIG) and Economically Weaker Sections (EWS).

  • EWS Loan is available for households with monthly income up to  5,000
  • LIG for households with an average income between  5001 and  10,000
  • For salaried individuals, 48 times of the last 3 months gross salary is available
  • For others, a maximum of 4 times of the average last 2 years annual income is available

Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)

A Credit Risk Guarantee Fund Trust has been established by the Ministry of Housing and Urban Poverty Alleviation, Government of India that provides guarantees of low-income Housing Loans. A Credit Risk Guarantee Fund Trust is available for low income housing through the Ministry of Housing and Urban Poverty Alleviation, Govt. of India.

  • This trust provides credit risk guarantee against housing loans up to  5 Lakhs for borrowers from LIG and EWS.
  • No third party guarantee or security is required
  • The Guarantee Cover extends to up to 90% of the amount in default for loans up to  2 Lakhs and up to 85% for loans above  2 Lakhs up to  5 Lakhs.

Pradhan Mantri Awas Yojana (PMAY)

Loans are available for EWS or LIG Category through the Pradhan Mantri Awas Yojana which provides subsidy on loan component to the extent of  6 Lakhs.

Baroda Home Suvidha Personal Loans

Existing Bank of Baroda Home Loan borrowers can avail this loan for financing the miscellaneous costs associated with the home purchase like insurance cost, registration cost, stamp duty, GST and club membership fee.  

  • The scheme can be availed by the existing Home Loan customers of Bank of Baroda as well as Home Loan customers of other lenders (if they opt for a balance transfer to the Bank of Baroda).
  • Available to Senior Citizens of India, above 60 years of age
  • Married Couples are eligible if one of them is 60 years of age and the spouse is not below 55 years of age at the time of application.
  • Applicant should be the owner of a residential property
  • Loan repayment tenure of up to 15 years is available, subject to extension based on survival of advance value of the property.

Documents Required for Bank of Baroda Home Loan

For Salaried employees

  • Duly filled application form for Home Loan
  • Two photographs of the applicant in passport size
  • ITR records for the last two years
  • Proof of identity such as the applicant?s Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of Residential Address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport.
  • Proof of Income such as last six months' salary slip, Form 16 of two years, Bank statement of at least the last six months that reflects salary being credited or EMI being debited.
  • All the legal, property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, a copy of the approved plan of construction or extension.

For Self-Employed

  • Duly filled application form for Home Loan
  • Two photographs of the applicant in passport size
  • Proof of identity such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of Residential Address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport.
  • Proof of Business like - VAT/ service tax registration/ company's incorporation details Address proof of the business, accounts and balance sheets showing profit and loss statements which have been certified by a CA, the proof of the business's existence a copy of the partnership deed and business profile.
  • All the legal, property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, a copy of the approved plan of construction or extension.

Factors affecting Bank of Baroda Home Loan Eligibility

Bank of Baroda Home Loan eligibility is based on your age, net monthly income, the value of the property under consideration and repayment capacity.

If you want to increase your Bank of Baroda housing loan amount eligibility, add earning family members as co-applicants or by applying for a longer duration loan to reduce your monthly outgo.

Here are the eligibility factors considered to avail Bank of Baroda Home Loan:

  • Nationality: The applicant can be Indian resident, NRIs with Indian passports, PIOs with foreign passports, OCIs.
  • Profession: Any salaried individual, self-employed professional, self-employed non-professional and staff member can apply for this loan.
  • You can apply individually or jointly
  • Applicant must be minimum 21 years old and co-applicant must be minimum 18 years when applying for the loan.
  • The maximum age of the applicant must not be above 70 years at loan maturity
  • Property purchased/constructed is accepted as security
  • If a property mortgage is not feasible, the applicant can provide security in the form of Insurance Policies, Government Promissory Notes, Gold, Shares, Debentures, and so on.
  • Resident Indian salaried applicants/co-applicants must be employed with the current employer for a minimum period of 1 year.
  • Resident Indian non-salaried applicants/co-applicants must be engaged in profession or business for a minimum period of 2 years.
  • NRI applicants must be a regular employee of a reputed Indian/foreign company or organization. They must have a work permit/ contract for minimum 2 years. If self-employed, they should be engaged in a business abroad for at least 2 years.
  • The gross annual income of NRI applicant should be minimum  5 Lakhs
  • Repayment capacity of the applicant is calculated as follows:

Salaried Individuals: Total deductions (including proposed EMI) shouldn't exceed as follows:

  • GMI (Gross Monthly Income) up to  20,000 - 50%
  • GMI of  20,000 -  50,000 - 60%
  • GMI of  50,000 -  2 Lakhs - 65%
  • GMI of  2 Lakhs -  5 Lakhs - 70%
  • GMI of  5 Lakhs or above - 75%

Others

  • Average GMI for the last 2 years of up to  6 Lakhs - 70%
  • Average GMI for the last 2 years of more than  6 Lakhs - 80%

How to Increase Your Bank of Baroda Home Loan Eligibility?

If you want to increase your eligible Home Loan amount, the following tips may help:

  • Repay all existing loans or any other Credit Card dues
  • Add income from other sources to your monthly salaried income like rent, bonus, and so on.
  • Add spouse as a co-applicant so that their income can be added
  • Mention the bonuses or other benefits from the employer that have been received from time to time.

Margin Norms and Loan-to-Value Ratio (LTV)

Up to 30 Lakhs
MarginLTV Ratio
10%90%
  
Above 30 Lakhs up to 75 Lakhs
MarginLTV Ratio
20%80%
Above 75 Lakhs
MarginLTV Ratio
25%75%

How to Increase Your Bank of Baroda Home Loan Eligibility?

If you want to increase your eligible Home Loan amount, the following tips may help:

  • Repay all existing loans or any other Credit Card dues
  • Add income from other sources to your monthly salaried income like rent, bonus, and so on.
  • Add spouse as a co-applicant so that their income can be added
  • Mention the bonuses or other benefits from the employer that have been received from time to time.

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Bank of Baroda Home Loan Eligibility FAQs

What is the procedure for getting Bank of Baroda Home Loan?

You can approach a Bank of Baroda branch directly for a loan or could apply for a Home Loan through online lending marketplaces like MyMoneyMantra. MyMoneyMantra allows you to compare offers from 70+ banks and NBFCs and provides benefits like low processing fees, special cashback offers, and so on. After you make a loan application, our representatives will collect your documents and initiate the loan process. The bank then checks your CIBIL score, does property valuation, technical and legal checks on the property, and the eligibility calculation. Post evaluation of these factors, the bank communicates their decision whether to sanction a loan or not.

Why should I opt for a balance transfer to Bank of Baroda?

With bank branches in almost all towns, Bank of Baroda offers competitive Home Loan rates starting at 8.65% p.a. for 30 years tenure. So, in case you are paying an interest more than that, you should shift to Bank of Baroda.

What is the maximum Home Loan tenure offered by Bank of Baroda?

The maximum loan tenure at Bank of Baroda is 30 years

Will I get any tax benefit on Home Loan from Bank of Baroda?

Under section 24 and section 80C of Income Tax Act of 1961, all residents of India are eligible for tax benefits on the principal amount and interest components of the Home Loan. 

What are the charges for foreclosure of Home Loans at Bank of Baroda?

You can foreclose your loan at NIL charges

Can I transfer my house loan from other banks to the Bank of Baroda?

Yes, you can transfer your existing loan outstanding amount from other banks to Bank of Baroda. However, you should have paid all instalments regularly without any defaults on your existing loan.

Can I apply for a joint Home Loan by clubbing the income of my spouse?

You can club the income of your spouse so as to increase your loan amount eligibility.

What is the benchmark used to determine the rate of interest applicable for a housing loan?

The benchmark applicable for determining the interest rate for a Home Loan at Bank of Baroda is 1 Year MCLR.

How do part prepayments on Bank of Baroda housing loan change my EMI?

Part-prepayments help reduce the outstanding amount of loan and thereby reduce the total interest that needs to be paid. You can opt to keep the EMI constant and increase the loan tenure of you can opt to keep the loan tenure the same and reduce the EMI as per your financial situation.

How to increase my eligibility for Bank of Baroda Home Loan?

You can add the income of your spouse (or other eligible co-applicant) to your income and apply for a Home Loan jointly in order to increase the loan amount eligibility.

How will interest rate on Bank of Baroda Home Loan change in future?

  1. Floating interest rate - This rate is benchmarked to 1 Year MCLR Rate, which is currently at 6.75%. If Bank offers a Home Loan at 8.60%, it implies that you are getting a loan at a 0.1% premium to its MCLR Rate. Here, the rate moves according to the MCLR rate. This MCLR rate is based on RBI monetary policy depending on the macroeconomic conditions in the country.
  2. Fixed interest rate - Here, the rate of interest remains fixed for the entire duration of the loan tenure