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.
|Eligibility Criteria||BANK OF BARODA Home Loan|
|Eligible Age of Borrower||21- 70 years|
|Minimum Eligible Income||₹ 10,000 and above|
|Work Experience for Salaried||2 years|
|Business Stability for Self Employed||3 years|
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.
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.
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.
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:
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.
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:
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.
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.
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.
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.
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.
It is a government-initiated housing loan scheme for urban poor - Low Income Groups (LIG) and Economically Weaker Sections (EWS).
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.
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.
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.
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:
Salaried Individuals: Total deductions (including proposed EMI) shouldn't exceed as follows:
If you want to increase your eligible Home Loan amount, the following tips may help:
|Up to 30 Lakhs|
|Above 30 Lakhs up to 75 Lakhs|
|Above 75 Lakhs|
If you want to increase your eligible Home Loan amount, the following tips may help:
Home Loan Eligibility by Banks
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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.
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.
The maximum loan tenure at Bank of Baroda is 30 years
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.
You can foreclose your loan at NIL charges
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.
You can club the income of your spouse so as to increase your loan amount eligibility.
The benchmark applicable for determining the interest rate for a Home Loan at Bank of Baroda is 1 Year MCLR.
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.
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.
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