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Complete Guide For Bank of Baroda Loans

To meet the diverse needs of the customers, Bank of Baroda provides a wide variety of loans. Bank of Baroda loans can be availed to construct a house, child’s wedding, or education or to purchase a dream vehicle. Dreams come true with Bank of Baroda loans.

Bank of Baroda Loans

The different types of loans offered by Bank of Baroda include home loan, home loans for NRIs or PIOs, mortgage loan, education loan, Baroda Home Loan Advantage, Loan against future rent receivables, Traders Loan, Baroda two wheeler loan and much more.

The Baroda personal loan is provided for any personal need. However, the cause should not be speculated. The employees of state or central government organizations, employees working in public limited companies, educational institutions, and those working in the joint sector organizations for a period of past one year are eligible for obtaining the loan. In the case of applicants working as insurance agents, they should have been in the job for the past 2 years. Self-employed professionals such as architect, doctor, engineer, or interior designers with at least one year of experience are eligible for the loan. However, the business during this period should be stable without any hiccups. The personal loan amount of up to Rs.2 lakhs is offered for applicants who are  Bank of Baroda Account holders or any other bank for the past six months.

A loan amount of more than Rs.2 lakhs is provided for customers with account relationship with Bank of Baroda for a period of past six months. Salaried employees working in private organizations should have the salary account with Bank of Baroda to obtain the personal loan of more than Rs.2 lakhs. Similarly, insurance agents are eligible for obtaining higher loan amount if they have been depositing their commissions with Bank of Baroda for the past six months. Whether it is the salaried employees or the self-employed personnel, the age should be 21 years minimum and can be a maximum of 60 years. The maximum age limit is considered including the repayment period.

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The minimum amount of personal loan that can be availed is Rs.1 lack and the maximum amount that can be obtained is Rs.10 lacks in the case of metro and urban areas. In the case of semi-urban and rural areas, the maximum amount is set to Rs.5 lacks and the minimum amount is set to Rs.50,000. The loan tenure is limited to Rs.48 months irrespective of the loan amount. The repayment has to be done as equated monthly installments. A penalty of 2% of the outstanding amount has to be paid for late payment of the loan amount. Pre-closure of the loan is allowed only after 6 months of disbursing the loan amount. For pre-closure before the six month period, a penalty of 4% of the outstanding amount has to be paid. If you have any doubts regarding loans then you can contact Bank of Baroda Customer Care at any time.

Bank of Baroda home loan is not only available at lowest interest rate but also the documentation process and the entire processing procedure is simple and hassles free. The entire process is completed in a short time provided the customer provides the needed documents appropriately. The Baroda Home Loan is provided for the construction of a new house, purchase of a plot for the construction of a house, shift the housing loan from other banks to Bank of Baroda, and for reimbursement of the price of the land that was purchased in the past 24 months. The repayment period for the loan is up to 30 years. Borrowers of home loan can avail a concession of 0.25% on the car loan interest rate. Top up loan can be availed for about five times during the loan tenure. The value of the top loan amount is determined to base on the cost of the house and the outstanding loan amount. The housing property of a value equal to the loan amount is taken as a mortgage for the loan. The loan can be repaid either in parts or full without paying any penalty or the fee. The loan has to be repaid before the borrower is 70 years of age. In the case of under construction houses, a moratorium period of 36 months is offered.

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Higher education or education overseas is impossible to few students because of the financial hurdles. Bank of Baroda Education loan is for such enthusiastic students who wish to pursue higher education of their choice without worrying about the fees. Different types of Baroda education loans support different stages of education. The Baroda Vidya is for nursery to class XII. The Baroda Gyan is for higher studies to be pursued in India. Baroda Scholar is for education abroad. Baroda Education Loan is to students pursuing an education in premier institutions within India. The loan is offered only to Indian students who have enrolled in any course such as MBA, MCA, MS, regular degree, diploma course or any professional course. The loan is offered to cover all education-related expenses such as the purchase of books, uniform, laptop, etc apart from the tuition fee. You can also check here Education loans of Bank of India Loans and Axis Bank Loans.For loans valued below Rs.4lakhs, the student does not have to provide security. For loans in the range of Rs.4lakhs to Rs.7.5 lakhs, a Collateral in the form of a suitable third party guarantee has to be given along with assignment of future income. For loans above Rs. 7lakhs, a collateral security has to be provided. The loan amount is disbursed directly to the organization or the institution in which the student is enrolled. Girl students are provided a concession of 0.5%.

The fast paced daily routine makes it mandatory to own a car for comfort rather than as a luxury. Baroda car loan helps you own a car that is ideal for your family needs.  A loan amount of up to Rs.100 lakhs is provided to own a car model of your choice. The repayment period for the loan is 7 years. Pre-closure of the loan can be done only after 6 months of disbursing the loan amount. To pre-close the loan before the six month period, a penalty of 4% of the outstanding amount has to be paid. The loan tenure is about 84 months in the case of new vehicles.

Bank of Baroda Loan Interest Rates

The interest rate for the home loan is 8.35%. The personal loan interest rate is 11.35% to 16.35% which is low compared to Allahabad bank and in par with other banks such as ICICI and Standard Chartered Bank. Compare the Loan Interest Rate of Bank of Baroda with other banks like IDBI Bank LoansHDFC Bank Loans and ICICI Bank Loans.

FAQ’s Related to Bank of Baroda Loans

  1. What is the time taken for the sanction of a loan?

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 The time depends on the loan amount applied. Higher amounts are sanctioned after obtaining approval from the higher authorities and hence, take time. The maximum time limit is 30 days.

2. How to apply for a loan?

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 The customer can contact the branch directly and apply for a loan. The skilled bank executives assist the customers in the entire process. The branch manager assists the applicants providing the required information. An application for the loan can also be submitted online. Personal details, any existing loan details, and the banking related information such as the Bank of Baroda account number has to be provided.

3. What are the different types of credit services provided by Bank of Baroda?

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 The different types of credits provided are cash credit in the form of working capital to assist customers in purchasing stores, consumables, spares, and raw material and bill purchase or discounting to meet the expenses of the business. Short term and long term loans are provided to purchase the machinery, furniture, business vehicles, fixtures, and furniture. In certain cases, credit is provided in installments as per the customer requirement.

4. What are the minimum and maximum period for which the credit can be availed?

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 The minimum period for which the credit can be availed is one day. The maximum period depends on the factors such as the purpose for which the loan is being taken and the income of the borrower which is determined by the success of the business operations. The credit sanctioned in the form of working capital is provided for a period of one year and the credit for the purchase of buildings or industrial equipment is provided for a period of more than one year which can be extended to a period of 7 days.

5. Does Bank of Baroda provide a foreign currency loan that can be used overseas?

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 Bank of Baroda provides loans to entrepreneurs in India for purposes overseas. The bank assists the corporate with its overseas branches. The loan is provided to the customers anywhere across the globe and the customer also has the option to choose the type of currency.

6. Can individuals who are not customers of Bank of Baroda also avail the loan?

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 Yes, even the new customers can apply for the loan. The bank welcomes even the new customers, provides the required assistance and develops a mutual relationship with the customers.

7. Can the entrepreneurs in real estate sector avail the credit facility from Bank of Baroda?

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 Yes, Bank of Baroda provides loans for applicants from real estate sector. The loan can be used to purchase a plot, build a house or a commercial complex.

8. What is the eligibility for obtaining a home loan from Bank of Baroda?

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 Salaried employees or self-employed personnel who are aged 21 are eligible for obtaining the home loan. The loan is provided for either purchase of a house or flat and to extend the existing house that is to add a new room etc.

9. What is the maximum amount of housing loan that can be obtained?

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 The maximum amount of housing loan that can be availed depends on the income and repaying capacity of the applicant. Other conditions such as the age, number of dependents, income, the stability of the occupation, liabilities, the ability to continue the savings are also considered while deciding the loan amount. The maximum amount of loan that can be obtained by an individual is about Rs.100 lakhs. Up to 80% of the market value of the property is offered for the loan amount.

10. What is the maximum amount of education loan that can be obtained?

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 The loan amount is determined by the repayment ability of the student or the parents. For students in India, the maximum amount of student loan that can be obtained is Rs.10 lakhs. For students abroad, the maximum amount of loan that can be obtained is Rs. 20 lakhs.

11. From when does the repayment of education loan begin?

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 The repayment of educational loan does not begin until the completion of the course of the student. A grace of period of one year or six months after obtaining the job is also provided before starting to repay the loan. This period is termed as moratorium period or the repayment holiday. The interest accumulated during this period should be paid along with the principal as EMI.

12. Is there any concession on the interest rate for educational loans?

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 Yes, the students who wish to pay the interest during the moratorium period are provided with 1% concession. Girl students get an extra 1% discount on loan interest rates.

13. What is the penalty for not paying the EMI of the educational loan?

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 An extra 2% interest has to be paid on the overdue amount if the educational loan amount exceeds Rs.4 lakhs.

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