Bank of Baroda Personal Loan Interest Rates

What Is the Interest Rate on Bank of Baroda Personal Loans?

Bank of Baroda (BoB) is one of the leading public sector banks in India. It offers personal loans up to ₹20 Lakhs to both salaried and self-employed people for any personal need. The interest rates for personal loans vary depending on the loan type, the borrower’s profile, and the bank’s relationship with the borrower. Overall, personal loan interest rate in Bank of Baroda starts from around 10.15% p.a. and can go up to about 17.5% p.a.

Here is the category-wise interest rate on personal loans offered by Bank of Baroda:

Category	Floating Interest Rate	Fixed Interest Rate
Government Employees with a BoB Salary Account under Scheme Codes SB 182 & 186	10.15% to 10.65% p.a.	11.00% to 11.50% p.a.
Central. State Government / PSUs Employees with a BoB Account	10.65% to 15.50% p.a.	11.25% to 14.10% p.a.
Central. State Government / PSUs Employees with Other Accounts	11.15% to 15.50% p.a.	11.75% to 14.10% p.a.
Salaried/Self-Employed with Bank of Baroda Account	11.90% to 15.50% p.a.	12.80% to 15.05% p.a.
Salaried/Self-Employed with Other Bank Account	13.90% to 17.50% p.a.	14.75% to 18.05% p.a.
Digital Personal Loans	11.65% to 17.00% p.a.	12.80% to 18.15% p.a.

What are the Fees and Charges Associated with Bank of Baroda Personal Loan?

Before applying for the Bank of Baroda Personal Loan, one should be familiar with the applicable charges. The applicant can determine the overall cost of the borrowed money, taking into account the various charges applicable to the loan. Given below are the key details about BoB personal loans:

Particulars	Details
Loan Amount	₹ 1,00,000 (Minimum Amount) ₹ 20 Lakhs (Maximum Amount)
Interest Rate	10.15% to 18.15% p.a.
Processing Fee	Government Employees with a BoB Account: NIL Others: 1-2% + GST
Penal Interest	2% on the Outstanding Loan Amount
Foreclosure Charges	NIL
Preclosure Charges	NIL

What’s the Difference Between Fixed and Floating Interest Rates at Bank of Baroda?

Bank of Baroda offers personal loans with options for both fixed and floating interest rates. It allows borrowers to choose based on their financial preferences.

• Fixed Interest Rate: A fixed interest rate stays the same throughout the loan tenure. It means that the EMI remains unchanged, making it easier to plan the monthly budget. Fixed rates are generally higher because they protect borrowers from future interest rate hikes.
• Floating Interest Rate: A floating interest rate is linked to the Baroda Repo Linked Lending Rate (BRLLR). So, when the RBI changes the repo rate, BRLLR also changes. This can increase or decrease the interest rate and EMI. Floating rates are usually lower than fixed rates. It can be more cost-effective when interest rates are stable or falling.

What is the Impact of Interest Rate on EMIs?

The interest rate is the most crucial component that determines loan EMIs. Even a small difference in interest rate can have a big impact on the EMI.

For example, if a person takes a ₹5 lakh personal loan for 5 years, then,

• At a 10% interest rate, the EMI will be about ₹10,624, and the total interest will be around ₹1.37 lakh.
• At an 11% interest rate, the EMI is about ₹10,870, and the total interest is around ₹1.52 lakh.

This means that even a 1% increase can cost ₹15,000+ extra over the same loan tenure. It shows how even a small difference in the interest rate can affect the total repayment. This is why it is important to check and negotiate the interest rate with the bank.

How Bank of Baroda Calculates Personal Loan Interest Rate?

Bank of Baroda calculates the interest rate on personal loans using a benchmark-linked pricing system. All the personal loan schemes are linked to the Baroda Repo Linked Lending Rate (BRLLR), which is based on the RBI’s repo rate. This benchmark basically acts as the base for the Bank of Baroda’s interest rate on personal loans:

Once the BRLLR is fixed, the bank adds a spread over it. It depends on the borrower’s profile, including factors such as credit score, income stability, employment type, and relationship with the bank. Borrowers with a good profile are charged a lower spread, whereas high-risk applicants are charged a higher interest rate.

The loan type also matters. Loans for government employees, pre-approved loans, and digital loans usually have lower spreads than standard personal loans.

So, the final personal loan interest rate in Bank of Baroda is calculated as:

Interest Rate = BRLLR + Risk-Based Spread – Any Concession

What Are the Factors Affecting Bank of Baroda Personal Loan Interest Rate?

The amount of the loan to the applicant and the interest rate at which it is provided could be affected by various factors. The most important factors that affect the Bank of Baroda personal loan interest rate are listed below:

• Credit Score: The applicant’s credibility can be directly assessed by their credit score. The bank typically requires a credit score of 700 or above for any loan. Bob Bank’s personal loan interest rate is lower for customers with strong credit scores. If a person’s credit score is low, they can raise it by paying their EMIs on time and paying off any outstanding loans.
• Income Stability: Personal loans require proof of stable income. The loan will likely be accepted without issue, and the interest rate will be lower if the applicant has a very reliable source of income.
• Reputed Employer: It is more likely that the application will receive approval more quickly if they work for a reputable company.
• Relationship with the Bank: The personal loan would be approved without issue if the applicant is an existing customer who has maintained the required balance throughout their relationship with the bank.

How to Get a Low Interest Rate on a Bank of Baroda Personal Loan?

One should analyse and check the best personal loan scheme with the lowest interest rate. Doing this can lower overall debt and secure a manageable, affordable EMI plan. Here are the recommendations to get a lower BoB personal loan interest rate:

• Maintain a high credit score (750+).
• Use a Bank of Baroda salary account.
• Keep a stable income and low existing debts.
• Avoid multiple loan or credit enquiries.
• Maintain a good relationship with the bank.
• Apply for pre-approved or digital loan offers, if possible.
• Choose a shorter repayment tenure.