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Baroda Home Loan

Value propositions

Bank offers following benefits with home loan availed by you:
  • Free Personal Accident Insurance is available for stipulated tenure.

  • Free Credit Card (BOBCARD – complementary for first year) to all Home Loan borrowers (first borrower) with loan limit of Rs. 2/- Lacs and above.

  • Concession of 0.25% in rate of interest for Car Loans.

  • Concession of 0.50% in rate of interest for Loan for consumer durables.

  • Top up Loan (Baroda Additional Assured Advance – AAA) can be availed 5 times during loan period.
    (Minimum Rs.1/- Lac,  Maximum Rs.200/- Lacs or 75% of residual value of house property after deducting 150% of outstanding loan amount of existing Home Loan, whichever is lower).

  • As per current IT provisions – Interest on loan upto Rs.1.50 lacs per annum is exempt from income tax (Under section 23/24 (1) of the Income Tax Act). An additional deduction of interest upto Rs.1 lac is available to persons taking a loan for their first home upto Rs.25 lacs during March 2013 to Feb 2014.

Terms & Conditions

  • In case of Salaried:

     Monthly Income Modified Criteria
    Up to Rs. 20,000/- 36 times of monthly income
    More than Rs.20,000/- & up to Rs. 1 lac 48 times of monthly income
    More than Rs. 1 lac 54 times of monthly income

    In case of others viz. professionals / self-employed / businesspersons etc., 5- times of average annual income (last three years).

  • Margin:

      Category of Home Loan   LTV (%)   Margin (%)
      Upto Rs.30 lakh 90% 10%
      Above Rs. 30 lakh and upto Rs. 75 lakh 80% 20%
      Above Rs. 75 lakh 75% 25%

  • As security against the loan amount, the bank will take an equitable mortgage of the housing property and/or other suitable securities.

  • No Fees will be charged on part prepayment / full prepayment of the loan amount.

  • The loan can be repaid in a maximum period of 30 years taken under floating rate option subject to the period up to age of retirement in case of salaried persons and 70 years in case of others.



Most Important Terms & Conditions (MITCs) For Home Loans Click here to expand or collapse

Purpose :-

  1. Construction/ purchase of new Dwelling Unit
  2. Purchase of Old dwelling Units (Not more than 25 years old)
  3. Purchase of Plot and construction of house thereon (if  House to be constructed within 3 years)
  4. Repayment of Housing Loan already availed from Bank/ Housing Finance Company and/ or any other sources provided documentary evidence is provided
  5. For extension of the existing House

Maximum Amount :- Rs 100 lacs in Rural/ Semi urban & Rs 300 lacs in Urban/ Metro area.

Security :-

  1. Mortgage of the Property constructed/ purchased or
  2. if mortgage is not feasible, Bank at its discretion can accept security in the form of Insurance Policies, Govt Promissory Notes, Shares and Debentures, Gold Ornaments etc.

Repayment Period :-

  1. Maximum period of loans shall be -30- years initially, including the maximum moratorium period of -36-months.

  2. Maximum moratorium period shall be -36- months as under:
    • 18- month moratorium period for under construction Houses and Building upto 7th Floor and thereafter -6- months additional moratorium per floor subject to a maximum moratorium of -36- months.

  3. Present age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 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.
    • Repayment period can be extended up to 70 years of the age in case of salaried persons drawing pension

Rate of Interest :-

Floating Rate :- Interest on the loan will be charged at prevailing floating rate on a daily reducing balance at monthly rests. The rate of interest is subject to revision from time to time due to change in base rate. Because of change in rate of Interest repayment period will be extended subject to fulfillment of Age criteria and maximum loan tenure.

Penal Interest :- If borrower defaults in payment of EMIs or account becomes irregular, the Bank will levy a higher rate of interest (2% over regular rate) on the irregular amount for the period of irregularity.

Issuance of Interest Certificate : - For the purpose of Income Tax, bank may issue Certificate to the Borrower for Interest Debited during the Year to the Housing Loan Account, being interest actually accrued on Loan Account.

Unified Processing Charges :- Unified processing charges (which includes processing charges, documentation charges, document verification charges and pre & one time post sanction inspection charges) to be levied as detailed below :-

Loans upto    Rs 30/- Lacs            : 0.50% of limit minimum Rs.5000/.
Loans above Rs 30/- Lacs           :  0.40% of limit minimum Rs.15000/ Maximum, Rs.50000/

(service Tax to be recovered separately in addition to the above)

In case of Takeover of Home Loan: 0.10% maximum Rs 10000/-

Inspection : Bank will have the right to inspect the borrower’s property at all times and from 2nd post sanction Inspection onwards Rs 100 plus service tax per inspection to be charged from borrower.

Legal opinion & Valuation charges : - Title of the property proposed to be purchased is to be clear, absolutely unencumbered and marketable to the satisfaction of the Bank’s solicitor/ advocate. Legal fee is to be paid for legal opinion to be obtained through a lawyer on the Bank’s panel. The fee is payable regardless of the fact that whether clear title is established and whether loan is sanctioned.

Valuation Fee : - Valuation of the property will be done by the empanelled valuer of the Bank for which prescribed fee is payable by the borrower.

Other Expenses : - like stamp duty for execution of documents, registration charges varying from State to State and other related charges/ expenses for the loan shall be borne by the Borrower.

Free Personal Accident Insurance is available for stipulated tenure.

Life Insurance Cover to Home Loan Borrowers : - Optional Life Insurance Cover is available to Home Loan Borrowers from Indiafirst Life Insurance Co Ltd and Kotak Life Insurance co Ltd at the cost of borrower.

Penalty Clause for Full Prepayment/ Premature Closure : - There are no prepayment charges for foreclosure of loan.

Conversion from Fixed Interest Rate to Floating Interest Rate Option : - can be considered by Bank with prospective effect subject to following:-

  1. If the Account is regular
  2. As one time offer from the Bank
  3. Upfront payment of Charges on outstanding balance @0.50% for every year for the residual period of the loan maximum 2% of the amount outstanding on the date of allowing conversion.
  4. Borrower’s request in writing for change of Rate of interest from fixed to floating rate is obtained.

Validity of sanction : - shall be 4 months.

Credit Information Report : Bank is authorized to make enquiries from any of the Credit Information Bureau and get the Credit Information Reports. Bank is also authorized to disclose from time to time any information relating to the loan to any Credit Bureau approved by Got of India or Reserve Bank of India without any notice to the borrower. 

For Latest Rate of Interest, Margin etc. please visit link at our internet site


For further details, please contact the Bank of Baroda Branch nearest to you.

> Home Loan > Home Loans to NRIs / PIOs
> Home Improvement Loan
> Interest Subsidy Scheme For Housing The Urban Poor (ISHUP)
> Loan Against Future Rent Receivables
> Mortgage Loan
> Advance Against Securities
> Education Loan > Career Development Loan
> Car Loan > Two Wheeler Loan
> Car Loan to NRI/PIO
> Loan to Doctors > Traders Loan > Personal Loan
> Loan for financing Individuals for subscription to Public Issues /IPO
> Baroda Ashray (Reverse Mortgage Loan)
> Baroda Advance Against Gold Ornaments /Jewellries (At Urban & Metro Centres)
> Baroda Traders Loan Against the Security of Gold Ornaments /Jewellries (At Urban & Metro Centres)
> BarodaBaroda Additional Assured Advance (AAA) (Resident / NRIs /PIOs)
> Baroda Traders Gold Card Scheme
> Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)
> Baroda Premium Personal Loan

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