Urban Money

Bank of Baroda Loan Against Property

Bank of Baroda
4.5

Bank of Baroda is a state-owned Indian and international banking and financial services entity that is headquartered in Vadodara (previously called Baroda) in Gujarat.

+91

Urban Money

Loan Against Property Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Bank of Baroda Loan against property Interest Rate

9.15% - 14.8%

0.35% - 1%

₹2L - ₹2Cr

Tenure(1 - 15 Years)

Details

Bank of Baroda Loan Against Property Features & Benefits 

If you apply for Bank of Baroda Loan Against Property, you can avail the following features and benefits.

  • There is the customisation of loans available against immovable property
  • Provides term loans, overdrafts, and demand draft facilities as well
  • Interest rate starts at 8.20% p.a. 
  • Processing fee starts from 1% for term loans and 0.35% for overdrafts
  • You can avail maximum value of up to 10 crores as a loan against property. You can have INR 10 crore in metro cities, INR 5 crore for urban areas, and INR 25 Lakhs in rural areas 
  • Apart from speculation activities, the Bank of Baroda gives loans for all purposes
  • Loans available for an extended tenure of 15 years
  • Minimal documentation and fast processing

Bank of Baroda Loan Against Property Eligibility Criteria

The Bank of Baroda Loan Against Property requirements and eligibility criteria is mentioned below:

  • The minimum age is 21 years 
  • The maximum age is 60 years 

For Residential Indians

  • The applicant whether a salaried professional, self-employed should be working or engaged in business for a minimum time period of three years.
  • Only a  maximum of a 3-month career break is allowed in the service.
  • The minimum gross income on average during the last three years must not be less than 3 lakh rupees.

For Non-Resident Indians

  • Any non-resident Indian with an Indian passport working a regular job in a reputed firm or organisation are eligible for taking loans against property.
  • A legal work contract or work permit for two years for employed and self-employed or entrepreneurs staying abroad.
  • The minimum gross income or average income for the last three years must not be less than INR 5 lakh.

Bank of Baroda Loan Against Property Fees and Charges

Here are the fees and charges for the Bank of Baroda loan against property.

Type of Charges Description of Charges
Processing fees
  • 1% for Term Loans:
  • The minimum amount is INR 8,500 (upfront)
  • The maximum amount is INR 1,50,000
Inspection
  • INR 100 and GST
  • It is applicable after the second instance only
For Legal opinion & valuation As per the applicability
Insurance As per the applicability
For Mortgage creation As per the applicability
For Stamp duty, property registration and other charges. As per the applicability
For commitment charges
  • 0.50% on an unutilised portion
  • This is applicable on overdrafts where the average quarterly usage is more than 60%

Bank of Baroda Loan Against Property Interest Rates

The LAP interest rates vary depending on the applicant's credit score, the value of the property and the product category.

Loan Amount Against Property Tenure for up to 10 years Tenure between10 years to 15 years
Up to INR 7.5 Cr 8.20 % - 13.10 % 8.70 % - 13.60 %
More than INR 7.5 Cr 8.45 % - 13.35 % 8.95 % - 13.85 %

Factors Affecting Bank of Baroda Loan Against Property Interest Rates

The interest rates on mortgage loans are a high-end product of this banking institution. However, the interest rate varies as it depends on the following factors:

Your Credit Score

A good credit score simply implies the person's creditworthiness. A good credit score is based on the repayment history of the individual. However, credit score plays a primary factor in affecting the loan interest rate. The minimum credit score should be 750 or more.

Mortgaged Property

The mortgaged property is another essential factor being loan approval. The location, condition, age, and current market price are considered during the loan approval process. Also, residential properties have a lower interest rate than commercial properties. Prime location properties provide a reasonable rate of interest compared to properties in a poor location.

Income Stability

Lenders also assess your financial history to finalise your interest rate on loans. A salaried employee with a stable income at a reputed company or a self-employed professional can secure a lower interest rate. Also, with a high income and low-income debt ratio, you can have a loan against property at affordable interest rates.

Tenure of the Loan

Loan tenure is the time taken by the borrower to repay the borrowed loan. This also determines the interest rate charged by every financial institution. The longer the tenure, the lower the interest rate whereas the lower the tenure higher the interest rate.

Documents Required for Bank of Baroda Loan Against Property

All the primary or co-applicants of LAP have to submit certain mandatory documents. These documents help in the validation of applicants' and co-applicants identity, address, age, and credibility. Here are the following documents required for the same:

  • The form needs to be submitted with a passport size photo of the applicant (all applicants, if any)
  • Identity proof: Applicant has to submit either a copy of Aadhar or PAN card (mandatory). A driving license and passport are also required
  • Residential Proof: The borrower has to submit a copy of their Voter ID, passport, driving license, rent agreement, and latest utility (any) bill 
  • Earning Proof: As a salaried person, one has to submit a salary slip for the last three months and Form 16. A self-employed person must submit business existence proof and a bank statement of the previous year. Other income proofs such as rent receipts and pension statements are mandatory as well 
  • Age Proof: As an individual, you have to provide your birth certificate, employee ID, and domicile certificate. As for a company or organisation, a chain of property title deeds is mandatory

Note: You must also know your CIBIL score before applying for a mortgage loan.

How does the EMI calculation work for Bank of Baroda Loan Against Property?

You have to fill all the Bank of Baroda Loan Against Property requirements such as loan tenure, rate of interest, and loan amount to calculate the monthly EMI. Calculation beforehand can guide you in managing your finances and making prepayments and savings within a few seconds.

The formula applicable for calculating loans against property EMI is the same. The formula is as follows:

EMI = [P*R (1+R) *N] / [(1+R) N-1]

Here,

  • P stands for the loan amount against property
  • R stands for rate of interest
  • N stands for the loan amount repayment time.

How does Bank of Baroda compare with other lenders?

You can compare other lenders with the Bank of Baroda based on different interest rates:

LAP Lenders Rate of Interest
Bank of Baroda 8.60 – 14.25 % p.a.
State Bank of India 8.40 - 8.80 % p.a.
PNB Housing Finance 7.75 - 11.00 % p.a.
IDFC First Bank 6.50 - 14.00 % p.a.
HDFC 7.65 - 10.60 % p.a.
L&T Housing Finance 10.30 - 10.90 % p.a.
LIC Housing Finance 7.50 - 10.50 % p.a.
Godrej Housing Finance 7.99 - 10.99 % p.a.
ICICI Bank 7.85 - 9.50 % p.a.
Tata Capital 10.10 onwards % p.a.
Bajaj Housing Finance 8.00 - 9.05 % p.a.
Axis Bank 7.90 - 9.30 % p.a.
Kotak Mahindra Bank 9.50 - 11.70 % p.a.

Bank of Baroda Loan Against Property Customer Care Number

Bank of Baroda free customer care number for Indian residents is as follows:

  • 1800 258 44 55 
  • 1800 102 44 55

For Non-Resident Indians free customer care numbers are:

  • +91 79-49044100 
  • +91 79-23604000

Bank of Baroda has a pan India presence and you can always visit the nearest branch in your area to resolve any queries or service-related concerns.

FAQs

From refinancing to reducing your interest, we have the answers right here.

What is the maximum loan amount that I can avail myself of against the property?

The maximum loan amount from the Bank of Baroda is INR 10 crore in metro cities, INR  5 crore in Urban cities, and INR 25 lakh in rural areas.

Can I get a loan against the plot?

A loan for plot purchase can only be taken for the purchase of an empty residential plot or piece of land, which can then be used for construction or as an investment. This property must be located within municipal or corporate boundaries.

What is LTV?

The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. Mortgage lenders may use the LTV in deciding whether to lend to you and to determine if they will require private mortgage insurance.

The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. Mortgage lenders may use the LTV in deciding whether to lend to you and to determine if they will require private mortgage insurance.

No, there is no extra fee for loans against property in Bank of Baroda apart from the processing fee.

Does the Bank of Baroda Provide a loan against property at the best rate?

Yes, the Bank of Baroda provides a loan against property at the best interest rate. With rates starting at 8.6% onwards.

What is the interest rate of the loan against property in the Bank of Baroda?

The interest rate of the loan against property in the Bank of Baroda is 8.20 % – 13.85 %.

What is the maximum term for which I can avail of a Loan Against Property (LAP)?

The maximum term for which you can avail of a loan against property is 120 months to 180 months.

Does the Bank of Baroda check the CIBIL score for loans against property?

Yes, the Bank of Baroda needs CIBIL score equal to 750 or more for a loan against property to be approved.

What is the maximum loan against the property amount I can get from the Bank of Baroda?

The maximum loan amount available in the Bank of Baroda against the property is INR 10 crores.

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