Home Loans is one of the key products of BOB. The Bank of Baroda Home Loan is offered for multiple purposes such as purchase of property, construction, home improvement etc. In all, Bank of Baroda provides customised Home Loan services for its customer at low-interest rates and processing charges.

Bank of Baroda offers highly attractive Home Loan terms for the customer. You can borrow high amount and tenure and enjoy repayment ease, according to your budget. Given below is the quick summary of Bank of Baroda Home Loan:

Along with your application form, you will also have to provide a certain set of documents to the Bank so that they can verify the eligibility of your loan application. The bank requires documentation related to your identity, residence and income. They also need property-related documents as the property has to be kept as a mortgage with the bank.

Must have documents:

The bank requires you to provide certain documents to verify your claims of age, income, identity, property etc. Based on the documents provided, the bank will establish your eligibility and approve your Home Loan request and decide on the final rate of Interest on home loan.

Documents concerning the applicant:

These are the documents related to the applicant's personal profile. These documents are essential for the application to proceed further. Here is the list of personal documents required for BOB Home Loan: 

• Duly filled application form with latest 2 photographs attached.
• Proof of Identity:

Copy of any one legal identification document such as PAN Card/ Aadhaar Card/ Passport/ Driving License/ Voters ID Card

• Residential Proof:

Copy of any one legal proof for residing address such as Aadhar Card/ Passport/ Driving License/ /Utility Bills (e.g. Telephone Bill, Electricity Bill, Water Bill or Piped Gas Bill)

• Employers Identification

Property Papers

In case of a Home Loan, the property in concern is basically pledged for loan amount. For this reason, the bank needs the original property papers to hold until the loan is repaid. Below are some documents asked for:

• Construction Permit (in case of construction of property)
• Sale agreement (Registered)
• Occupancy Certificate (in case of purchase of existing property)
• Share Certificate, Maintenance Bill, Electricity Bill, Receipt for Property Tax
• Approved Plan & Registered Development Agreement of the Builder, Conveyance Deed (in case the property is still under construction)
• Payment Receipts or Bank Account Statements showing the amount of down payment / other instalments made to the builder/ society

Account Statement:

The bank requires your account statement to verify salary credit into your account every month and also the amount of savings on an average into your account

• Bank statement of 6 past months for all bank accounts held by the applicant.
• Loan account statement within 1 year, in case of any active previous loans.

Besides the above listed documents, a salaried individual needs to provide adequate proof of income as they have claimed in the Home Loan application. They need to submit:

• Salary slips/ salary certificate for last 3 months.
• Form 16 copy from last 2 years or copies of any other form of IT returns for last 2 years.

Besides the common list of documents for personal identification and property papers, a self employed individual needs to provide proof of income. The documents required include:

• Business address proof (if available)
• Last 3 years IT returns
• Last 3 years Balance Sheet & Profit & Loss A/c Statements
• Business License Details (if available)
• TDS Certificate (if available)
• Certificate of qualification (for C.A./ Doctor and other professionals)

It is possible for people on a steady regular pension to avail a Home Loan. However, they need to prove that they are receiving regular pension and will continue to receive it until the end of tenure. They also have to make sure that they don't exceed the max-age criteria for home loan eligibility.

• Proof of pension income.
• Proof of pension until the end of the loan tenure.
• Bank statement of 3 months showing pension deposited.

Bank of Baroda allows NRIs and PIOs to avail a Home Loan in India. NRIs have some other eligibility criteria which will also have to be satisfied. NRIs have to provide the below listed documents.

• Copy of valid Passport and Visa
• Address proof of current overseas address
• Copy of Continuous Discharge Certificate (CDC) (if applicable).
• PIO Card issued by the Indian Government (if applicable).
• The attestation of documents may be done by Foreign Office representatives or representatives from the Indian Embassy.
• Last 6 months account details for overseas account as well as accounts in India.

When you apply for a Home Loan, you would need to prove the validity of salary slips and business documents submitted. You need to validate that the income is being deposited into your account on a regular basis. The bank will ask for your account statement for this. Your bank statement will also reflect upon your monthly expenditure and liabilities. Based on the amount you are able to save on an average in your account, the EMI will be calculated.

Importance of NOC to take home loan

When you purchase a property, the property is owned by you, however, the land on which the property is built belongs to the society. That is why, when the bank wants to use the property as mortgage, they need to obtain an NOC (No Objection Certificate) from the society stating that the bank is permitted to hold the property under mortgage until the borrower has repaid the Home Loan. Without an Housing societys NOC, the bank will not be able to avail the security and hence, won't be able to grant you the loan. 

Your Home Loan approval is subject to you satisfying the Home Loan eligibility. The Home Loan eligibility depends on a lot of factors like age, tenure, income, and loan amount. Below are some other factors that can affect Home Loan eligibility.

Lack of income proof:

If you are a salaried employee or a self-employed person, you will have to be able to prove your income on paper. You will have to provide enough documentation to showcase your income. You can provide your Salary Slips, Account Statement, Business Proof, Business Profit Loss Sheets etc. In case you are not able to provide adequate proof of your income, your loan application cannot be approved.

Number of dependents:

Even if your income falls within the eligibility range, it isn't enough. The number of dependents on your income would also affect your eligibility. The more dependents on your income, the more strain on your finances and the less disposable income you have. Your disposable income should be enough to bear the EMI. 

Co-applicant:

Having co-applicants can increase your chances of availing a Home Loan greatly. The co-applicants' income is added to your income as the total income for the Home Loan. The burden of repayment is also shared between the co-applicants and this provides the bank with better assurance of repayment. Co-applicants are also allowed to claim tax benefits on the same home loan. 

Experience:

While the bank favours younger applicants for a Long Term Loan, they also require the applicant to have some work experience so that they can be assured of income stability. At least 2 years of job experience is required for salaried candidates and at least 3 years of professional business experience is required to be eligible for Home Loan.