Bank of Baroda Commercial Property Loan

Bank of Baroda is a prominent public sector bank in India, renowned for its extensive range of banking products and services including commercial property loans. BOB commercial property loan offers a combination of traditional loans and an overdraft feature, providing flexible repayment choices secured against your immovable property.

The process for this mortgage loan starts with evaluating the applicant's income and property background. Typically, the bank assesses the income suitability and the market viability of the property offered as security. Based on the market value of this collateral, the loan amount is sanctioned. Read extensively about BOB commercial property loans in this guide.

BOB Commercial Property Loan Highlights

Highlights

Interest Rates 10.85%-16.50% p.a.
Loan Amount Rs 2 lakh to Rs 25 crore
Loan Tenure Up to 15 years
Eligibility Both salaried and self-employed individuals are eligible
Processing Fee Up to 1% (Rs 8,500 upfront-Rs 75,000)

Bank of Baroda Commercial Property Loan Features and Benefits

Bank of Baroda commercial property loan offers the following features:

  • Income from Idle Property: Allows property owners to generate revenue from properties that are not in use.
  • Flexibility to Withdraw Money: Offers the convenience of withdrawing funds as needed.
  • Availability as Overdraft: Enables borrowers to use the loan as an overdraft facility for greater financial flexibility.
  • Availability as a Demand Loan: This can be utilised as a traditional loan to meet specific financial needs.
  • Competitive Rate of Interest: Offers loans at competitive interest rates, making them financially appealing.
  • Loan Availability up to INR 25 Crore: Provides substantial financial support with a high maximum loan limit.

Bank of Baroda Commercial Property Loan Interest Rates

Interest rates for salaried and self-employed applicants are more or less the same. However, here is a quick rundown of the BOB commercial property loan interest rates.

Tenure up to 10 years

Loan Amount Interest Rates (p.a.)
Facility up to Rs 7.5 crore 10.85%-15.75%
Facility above Rs 7.5 crore 11.10%-16.00%

Tenure above 10 years to 15 years

Loan Amount Interest Rates (p.a.)
Facility up to Rs 7.5 crore 11.35%-16.25%
Facility above Rs 7.5 crore 11.60%-16.50%

Bank of Baroda Commercial Property Loan Eligibility Criteria

Bank of Baroda provides loans against property starting at an interest rate of 10.85% per annum, which varies depending on the chosen loan amount and tenure. Although the bank hasn't explicitly stated varying rates based on credit scores or the occupational profiles of applicants, such factors are commonly taken into account by many lenders in determining their interest rates for similar loans.

Eligibility for Salaried Person and Self-Employed

Here is a quick rundown of the Bank of Baroda Commercial Property Loan for a salaried person.

Requirement Details
Who can apply
  • Salaried/Professional  
  • Self Employed   
  • Agriculturists & Others
Income 
  • Minimum annual income - 3 lacs 
  • For NRIs, minimum annual income - 5 lacs
Age 
  • Minimum - 21 years 
  • Maximum - 60 years 
Objective 
  • Buying of a commercial property

Bank of Baroda Commercial Property Loan Documents Required

Following are the documents required for BOB Commercial Property Loans.

  • A fully completed application form signed by the applicant or guarantor.
  • Two passport-sized photographs.
  • Valid ID proof includes an employer-issued ID card, passport, Voter ID, driver's license, Aadhar card, or PAN card.
  • Six months' bank statements.
  • Recent residential address proof, like utility bills or a passport.
  • Income-related documents, such as salary slips, income certificates, ITRs, and financial statements, differ for salaried, self-employed, professionals, and agriculturists.

Bank of Baroda Commercial Property Loan Processing Fees and Other Charges

Following are the BOB Commercial Property Loan processing fees and charges.

Processing Charges

Term Loan Up to 1% (Rs 8,500 upfront-Rs 1,50,000)
Overdraft Loan amount up to Rs 3 crore: Up to 0.35% (Rs 8,500 upfront -Rs 75,000)Loan amount above Rs 3 crore: Up to 0.25% (Rs 8,500 upfront)

Bank of Baroda Commercial Property Loan - Terms and Conditions

Following are the terms and conditions of Bank of Baroda Commercial Property Loan:

  • Bank of Baroda Commercial Property Loan eligibility requires applicants to be salaried, professionals or self-employed income tax assesses for 3 years.
  • Age requirements must be adhered to. 
  • Loan purpose excludes financial speculation, real estate development, property dealing, or speculative activities.
  • Loan types available: Term Loan, Demand Loan, or Overdraft.
  • Margin on property value: Residential (25%), Commercial (35%), Industrial (50%), Others (50%).
  • Security limits based on branch location: Metro (25 Cr), Urban (10 Cr), Semi-Urban (5 Cr), Rural (0.25 Cr).
  • Repayment: Term Loan (up to 180 months), Overdraft (reviewed annually, 12 months).
  • Repayment capacity is linked to Net Monthly Income (NMI) with varying percentages based on income brackets.
  • Unified Processing Charges cover fees collected upfront and at loan sanction, including stamp duty and mortgage-related charges.
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