Home Improvement Loan

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Home Improvement Loan

Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations / Improvement / Extension of Home and for Furniture, Fittings & Fixtures.

Loan available for repairs / renovation / improvement / extension of the existing house.

  • Maximum Loan Rs.50 lacs
  • Repayment Period: Maximum 15 years
  • The eligibility for Baroda Home Improvement Loan will be calculated as per the scheme guidelines of Baroda Home Loan to Individuals

Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:

  • Our existing housing loan borrowers
  • New borrowers

Free Credit Card

  • Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lacs.

All individuals (resident Indians) singly or jointly owing a dwelling unit in their name/(s).


Minimum age of the applicant must be 21 years. However, the minimum age of co-applicant/s can be 18 years.

Present age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and should not be beyond 70 years in case of others subject to availability of sufficient regular and continuous source of income for servicing the loan repayment, provided Son /Daughter /Spouse who is a legal heir and preferably below 50 years of age, with sufficient income for servicing the loan repayment joins as Co-Borrower/Guarantor

Income Criteria

Other than salaried persons i.e. professionals / self-employed / business persons etc., 3 times of net (average of last three years) annual income plus depreciation claimed individual capacity (and not the depreciation claimed by the business unit).

In case of Salaried

A Gross Monthly Income Income Criteria
-GMI less than Rs.50,000 48 times of average of last -3- months Gross monthly income
-GMI Rs.50,000 and above but less than Rs.1 lacs 54 times of average of last -3- months Gross monthly income
-GMI Rs.1 Lac and above 60 times of average of last -3- months Gross monthly income

In Case of Others

  • Gross Annual Income (GAI) less than Rs.2.00 Lacs 4 times of GAI
  • Gross Annual Income (GAI) Rs.2.00 lacs & above 6 times of GAI


25% of the Project cost (Project cost will include - estimated cost of repairing/renovation/extension, cost of furniture/fixtures/furnishing other gadgets and also the stamp duty payable for criteria of equitable mortgage).


Mortgage of the property to be repaired / renovated.

Repayment Period

  • Maximum-15-years by Equated Monthly installments
  • Moratorium period maximum-6-months or one month after completion of repair/renovation work whichever is earlier

Service Charges for Full Prepayment/Premature Closure

No penalty for pre-payment

Rate of Interest

One year MCLR to One year MCLR +1.00% (As per Risk Rating of the applicant/s.)


Upto Rs.50 Lacs: 0.50% of Loan amount

  • Minimum: Rs.7,500/- (Upfront)
  • Maximum: Rs.12,500/-

Above Rs.50 Lacs: 0.25% of Loan amount

  • Minimum : Rs.7,500/- (upfront)
  • Maximum: Rs.20,000/-

The house should not be older than 35 years. Residual life of the house may be minimum repayment period plus 5 years to be certified by approved architect / valuer vis-a-vis total repayment period of the loan.


Can I avail of Home Loan from Bank of Baroda?

  • Yes, you can avail a Home Loan from Bank of Baroda, if you plan to construct or purchase a house/flat or extend your existing house/flat and,you are :
  • A minimum of 21 years
  • Employed or Self Employed with regular income.

Who can be co-applicant?

The proposed owners of the residential accommodation as per the Agreement for sale, in respect of which financial assistance is sought, must be co-applicants. Usually joint applications are from husband-wife, father-son or mother-son etc.


How much does Bank of Baroda lend?

  • Loan amount is determined on the basis of the repaying capacity of the applicant/s. Repaying capacity takes into consideration factors such as age, income, dependents, assets, liabilities, stability of occupation and continuity of income, savings etc.
  • The maximum loan would be Rs.10.00 Crore per unit to any individual applicant based on the area where property is proposed to be constructed/purchased. We will extend loan upto 90% (for fresh houses / flat) of the cost of property under our Housing Loan Scheme.

For how long a period can I get the loan?

We grant term upto a maximum of 30 years. The term for the loan will under no circumstances exceed the age of retirement or completion of 65 years of age, whichever is earlier.


But can I prepay the loan ahead of schedule?

Yes, you have the option to prepay the loan ahead of schedule either in part or in full from your own sources.


What is the mode of repayment?

  • Equated Monthly Instalment (EMI) : It means a uniform lumpsum amount, which includes repayment of a part of the principal amount and payment of interest, calculated on daily products basis.
  • Fixing the monthly / quarterly instalments on graduated basis is permitted of EMI as requested by customers.

What is the security for the loan?

The security for the loan is equitable mortgage of the property to be financed. The security for the loan is equitable mortgage of the property to be financed.


Do you insist on LIC policy as additional collateral security?

No, it is not mandatory.


What are the supporting documents required while applying for the loan?

Common requirements for all applicants.

  • Application form duly filled in (with photograph of all the applicant).
  • Residence and Age verification, which may be established from the PAN card, Election ID, Passport, Drivers licence and Ration card etc.
  • Copy of approved plan and sanction letter from local civic authority.
  • Copy of NA permission.
  • One/two guarantor/s form/s and salary certificates. - If guarantor is in business, copies of I.T. returns or assessment orders for the last three years are required.
  • Bank Pass-book of statements for the last two years.
  • Latest salary slip/statement showing all deductions in case of employed applicants.
  • Certified copies of Balance Sheets and Profit and Loss accounts, IT acknowledgments, advance tax challans (for both company/firm and personal account) for the last three years in case of self employed applicants.
  • Memorandum/Articles of Association for companies, partnership deeds for firms and a brief profile of your company/firm in case of self employed applicants.
  • Residence and Age verification, which may be established from the PAN card, Election ID, Passport, Drivers license and Ration card etc.

Additional requirement.

  • In case of purchase from builder
    • Copy of Agreement for sale.
    • Copy of registration receipt.
    • Copy of sanctioned plan & sanction letter of the competent authorities.
    • Copy of NA permission/ULC order.
    • Copies of receipts of payments already made.
    • NOC from builders in our format.
  • In case of direct allotment in a Co-operative Housing Society
    • Allotment letter.
    • Share certificate.Society registration certificate.
    • Copy of sale/lease deed in favour of the society.
    • NOC from society in our format.
    • Possession letter in original.
  • In case of resale
    • Copy of all previous vendors agreements duly stamped and registered and the registration receipts. (original to be given before disbursement).
    • NOC from Society/Builder in our format.
    • Original Share Certificate.

Whether you have any Housing loan product for NRIs?

Yes. We have Housing Loan product for NRIs / PIOs . For details, please visit our website at Housing Loans to NRIs / PIOs

For Home Loan Inquire

Call for any kind of support and reports us for loss or theft.

Toll free (24x7)

1800 220 400

Contact Centres

1800 223 344, 1800 102 4455 (24x7)

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Monthly Payment Rs. 1,977.00

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