Bank of Baroda Home Loan Eligibility Criteria

Note: Now you can check your transaction made from saving account with Bank of Baroda Mini Statement Number service.

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 8.40% - 10.60%, which is currently offered by Bank of Baroda.

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 behavior 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:

• Late payments: In case of any defaults or failure to make full payment on time for your existing or past loans, your CIBIL score is impacted negatively and your chances of getting a higher loan amount eligibility reduces.
• A high number of unsecured loans: Bank of Baroda prefers clients who maintain a balance between secured and unsecured loans. A higher number of unsecured loans can negatively affect your CIBIL score.
• Usage of credit limit: The manner in which you handle Credit Cards or Personal Loans reflects your financial discipline. In case you frequently use the entire credit limit on your card or loans, it means that there is a case of potential financial stress and financial indiscipline on your part. Hence, that may reduce your CIBIL score.
• Multiple loan applications: In case you apply for Home Loan at multiple banks simultaneously, it can affect your score negatively and reduce your CIBIL 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:

Baroda Home Loan:

 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.

• Resident as well as non-resident Indians are eligible to avail this Home Loan
• The loan is available to Indian Residents, NRIs and PIOs
• You can avail a Top-up Loan up to 5 times during your loan period
• The pricing is Risk-Based (Bureau score linked) for any Home Loan.
• Maximum loan amount available is  10 Crores in Mumbai,  5 Crores in other metros and  1 Crore in semi-urban and rural areas.
• You get loan repayment tenure of up to 30 years inclusive of a maximum 36 month moratorium period.
• With Baroda Home Loan, you can get a free Credit Card and also a concession of 0.25% on Car Loan interest rates.
• The bank also offers free accident insurance with its all Home Loan variants
• You can also avail group credit life insurance when you apply for a Home Loan
• Home Loan Balance Transfer facility available

Baroda Home Loan Advantage

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.

• Linking of savings account to the Home Loan account helps you to reduce interest on the Home Loan over the longer run.
• Minimum age of the applicant at the time of loan commencement must be 21 years while the maximum age is 70 years at loan maturity.
• Loan amount ranges from  15 Lakhs to  10 Crores
• A maximum loan of 90% of the value of the property can be provided
• Maximum loan tenure of 30 years

Home Improvement Loans

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.

• Existing Bank of Baroda Home Loan customers or new borrowers can avail this loan
• This loan can be used to purchase consumer durable electrical gadgets like fans, geysers, furniture, fittings, and all other such goods.
• All eligible Resident Indians can take this loan either singly or in a joint manner
• The minimum age for this loan is 21 years for applicant and 18 years for the co-applicant.
• Loan tenure is such that all repayment is to be done before the applicant's retirement age. The maximum age should be 60 years at loan maturity.
• A salaried professional can apply for this type of Home Loan for an amount of up to 2 times of their gross annual income.
• A self-employed professional/businessperson can apply for home improvement loans for an amount up to 3 times the average of their last three years annual income. The self-employed professional can also claim depreciation if he uses the loan for buying durables for his business purpose.
• Since the loan is unsecured, the bank keeps the property under renovation as security
• The maximum tenure for such a loan is 10 years
• The bank charges a processing fee for this loan. The fees are 0.50% of the sanctioned loan amount.

Baroda Pre Approved Home Loan

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.

• Salaried or self-employed individuals having at least  20,000 per month monthly income are eligible for this loan.
• Before the finalisation of the property, one can take this loan so that the entire transaction of purchase of property can be done quickly without having to spend time getting a loan sanctioned later on.
• The minimum age at the time of loan commencement is 21 years while the maximum age is 70 years.
• Loan amount ranges between  15 Lakhs to  10 Crores
• A maximum loan of 90% of the value of the property
• Maximum loan tenure of 30 years

Baroda Top up Loan

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.

• Top up loan is available to all existing Home Loan borrowers including staff, ex-staff members, NRIs and PIOs.
• The loan amount is based on the Standard Asset Classification

For Salaried employees

• Duly filled application form for Home Loan
• Two photographs of the applicant in passport size
• ITR records for the last two years
• Proof of identity such as the applicant?s Passport/ PAN Card/ Voter ID/ Driving License
• Proof of Residential Address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport.
• Proof of Income such as last six months' salary slip, Form 16 of two years, Bank statement of at least the last six months that reflects salary being credited or EMI being debited.
• All the legal, property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, a copy of the approved plan of construction or extension.

For Self-Employed

• Duly filled application form for Home Loan
• Two photographs of the applicant in passport size
• Proof of identity such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
• Proof of Residential Address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport.
• Proof of Business like - VAT/ service tax registration/ company's incorporation details Address proof of the business, accounts and balance sheets showing profit and loss statements which have been certified by a CA, the proof of the business's existence a copy of the partnership deed and business profile.
• All the legal, property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, a copy of the approved plan of construction or extension.

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:

• Nationality: The applicant can be Indian resident, NRIs with Indian passports, PIOs with foreign passports, OCIs.
• Profession: Any salaried individual, self-employed professional, self-employed non-professional and staff member can apply for this loan.
• You can apply individually or jointly
• Applicant must be minimum 21 years old and co-applicant must be minimum 18 years when applying for the loan.
• The maximum age of the applicant must not be above 70 years at loan maturity
• Property purchased/constructed is accepted as security
• If a property mortgage is not feasible, the applicant can provide security in the form of Insurance Policies, Government Promissory Notes, Gold, Shares, Debentures, and so on.
• Resident Indian salaried applicants/co-applicants must be employed with the current employer for a minimum period of 1 year.
• Resident Indian non-salaried applicants/co-applicants must be engaged in profession or business for a minimum period of 2 years.
• NRI applicants must be a regular employee of a reputed Indian/foreign company or organization. They must have a work permit/ contract for minimum 2 years. If self-employed, they should be engaged in a business abroad for at least 2 years.
• The gross annual income of NRI applicant should be minimum  5 Lakhs
• Repayment capacity of the applicant is calculated as follows:

Salaried Individuals: Total deductions (including proposed EMI) shouldn't exceed as follows:

• GMI (Gross Monthly Income) up to  20,000 - 50%
• GMI of  20,000 -  50,000 - 60%
• GMI of  50,000 -  2 Lakhs - 65%
• GMI of  2 Lakhs -  5 Lakhs - 70%
• GMI of  5 Lakhs or above - 75%

Others

• Average GMI for the last 2 years of up to  6 Lakhs - 70%
• Average GMI for the last 2 years of more than  6 Lakhs - 80%

If you want to increase your eligible Home Loan amount, the following tips may help:

• Repay all existing loans or any other Credit Card dues
• Add income from other sources to your monthly salaried income like rent, bonus, and so on.
• Add spouse as a co-applicant so that their income can be added
• Mention the bonuses or other benefits from the employer that have been received from time to time.

If you want to increase your eligible Home Loan amount, the following tips may help:

• Repay all existing loans or any other Credit Card dues
• Add income from other sources to your monthly salaried income like rent, bonus, and so on.
• Add spouse as a co-applicant so that their income can be added
• Mention the bonuses or other benefits from the employer that have been received from time to time.