Bank of Baroda Home Loan: 10 Frequently Asked Questions Answered Here!
Many Indian borrowers still prefer to contact a public sector bank for Home Loan requirements. For, they consider the terms and conditions of these banks are more customer-friendly, and there are fewer chances of any hidden costs being levied. Out of the multiple Public Sector Banks operating in India, Bank of Baroda is one of the dependable and customer-friendly entities.
So, if you too are contemplating to Apply for Bank of Baroda Home Loan, then you must look at the below mentioned Frequently Asked Questions that can help dissuade most of your doubts.
1. Are there different types of Bank of Baroda Home Loans?
Yes, there are multiple Home Loan options offered by Bank of Baroda for its diverse customer base. Depending on eligibility, you can apply for Home Loan listed below:
- Baroda Home Loan
- Baroda Home Loan Advantage
- Home Improvement Loan
- Home Extension Loan
- Home Loan for NRIs
- Baroda Ashray (Reverse Mortgage Loan)
- Baroda Home Loan Takeover
As all these Home Loan offers from Bank of Baroda have specific eligibility criteria, you must check the same before applying for one.
2. What type of interest rate options are available with Bank of Baroda?
You can borrow BoB Home Loan at fixed or floating Interest Rates. The Bank of Baroda Home Loan Interest Rates are available as:
- Baroda Home Loans linked to Repo Linked Lending Rate (BRLLR).
BRLLR is linked to the repo rate specified by RBI and changes accordingly. As of 1st December 2019, the Bank of Baroda Home Loan Interest Rates linked to BRLLR start from 8.15% (Repo Rate – 5.15%).
- Bank of Baroda home loan interest rates for base rate linked home loans are available for individuals, NRIs, and PIO customers. The Base rate presently has been pegged at 9.60% per annum.
3. What is the maximum repayment tenure available? Is there any mortarium period available?
The maximum repayment tenor available against a Bank of Baroda Home Loan is up to 30 years. Irrespective of the maximum tenor available, the bank will cap the repayment tenor to the period when the borrower attains the retirement age or becomes 65 years old. The bank also offers a maximum mortarium period of up to 36 months, but that is included in the maximum repayment tenor of 30 years.
4. Does Bank of Baroda offer any additional benefits for Home Loan customers?
Yes, BoB offers several benefits for its Home Loan customers to make their experience with the bank enjoyable. Some of the major benefits on offer are:
- A free Credit Card that comes with a high-value credit limit
- Free accident insurance for Home Loan customers
- Concession of 0.25% per annum against Car Loans availed from Bank of Baroda.
- Optional credit life insurance cover that offers significant protection to the family members of the applicant in case of the death of the applicant. The insurance company pays the policy amount to the bank, reducing the liability on the survivors. The premium can be added to the EMI, making it more affordable.
5. Does the maximum amount for BOB Home Loan differ according to cities?
Bank of Baroda offers high-value Home Loans to its customers, enabling them to purchase their dream home with relative ease. As the real estate prices vary according to the city, so does the maximum amount offered by the bank. The maximum amount available is as follows:
- For Mumbai – 10 crores
- Other Metropolitan cities – 5 crores
- Urban Centres – 3 crores
- Semi-urban and Rural centres – 1 crore
6. What are the processing charges applicable against Bank of Baroda Home Loan?
The processing charges levied by Bank of Baroda against its Home Loans are amongst the lowest in the market. These charges include inspection charges, legal fees, and valuation charges. These processing charges are payable one-time and vary according to the amount of the loan:
- Up to Rs. 50 Lakhs – 50% of the loan amount ( Min. Rs. 8,500 to Rs. 15,000)
- Above Rs. 50 Lakhs – 0.25% of the loan amount ( Min. Rs. 8,500 to Rs. 25,000)
7. What is the Loan-to-Value ratio for Bank of Baroda Home Loan?
The Loan-to-Value ratio for a Bank of Baroda Home Loan varies according to the total amount required as the loan.
- For loans up to Rs. 30 Lakhs – 90% of the property value
- For loans between Rs. 30 Lakhs to Rs. 75 Lakhs – 80% of the property value
- For loans above Rs. 75 Lakhs – 75% of the property value
8. Does Bank of Baroda allow prepayment of Home Loan EMIs?
Yes, Bank of Baroda allows its customers to foreclose or make a pre-payment against their Home Loan account. No additional charges are applicable when the borrower initiates the foreclosure.
9. Which documents are required for BOB Home Loan?
In order to Apply for a Bank of Baroda Home Loan, the borrower(s) need to submit the following documents with the application form:
- Address proof and ID proof
- Income Tax Returns for the last 3 years
- Approved map and sanction letter
- Chain of ownership documents for the property
- Savings Account statement for the last 2 years
- Form 26 AS and Form 16 (for salaried applicants)
- Audited Balance Sheet, Profit and Loss Account, and other annexures (for business owner applicants)
- Any other documents as required by the bank on a case-to-case basis
10. Is the facility of a Home Loan Top Up available?
Yes, Bank of Baroda offers the facility of a Home Loan Top Up for its customers to help them during times of financial requirements. This facility can be availed a maximum of 5 times during the entire repayment tenor of the Home Loan.
Now that you have a thorough understanding of the critical aspects related to Bank of Baroda Home Loan, you can go ahead confidently and apply for Home Loan without any hassles.
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