Bank of Baroda Home Loan Interest Rate 2019 Calculator
Comprehensive Guide to Bank of Baroda Home Loan Interest Rates in 2019
The Bank of Baroda (BoB) has been one of India’s leading public sector banks, offering competitive home loan products with attractive interest rates. In 2019, BoB introduced several customer-friendly schemes with interest rates starting from 8.35% p.a., making home ownership more accessible to millions of Indians.
Key Features of Bank of Baroda Home Loans in 2019
- Competitive Interest Rates: Starting from 8.35% p.a. for salaried individuals and 8.40% p.a. for self-employed professionals
- Loan Amount: Up to ₹10 crore depending on eligibility
- Repayment Tenure: Flexible options from 5 to 30 years
- Processing Fees: Typically 0.50% of the loan amount (minimum ₹8,500, maximum ₹15,000)
- Prepayment Charges: Nil for floating rate loans
- Special Schemes: Baroda Home Loan Advantage, Baroda Top-Up Loan, and Pradhan Mantri Awas Yojana (PMAY) linked schemes
Bank of Baroda Home Loan Interest Rate Comparison (2019)
| Loan Amount | Salaried (p.a.) | Self-Employed (p.a.) | Women Borrowers (p.a.) | Processing Fee |
|---|---|---|---|---|
| Up to ₹30 lakh | 8.35% – 8.60% | 8.40% – 8.65% | 8.30% – 8.55% | 0.50% (min ₹8,500) |
| ₹30 lakh – ₹75 lakh | 8.40% – 8.65% | 8.45% – 8.70% | 8.35% – 8.60% | 0.50% (min ₹8,500) |
| Above ₹75 lakh | 8.50% – 8.75% | 8.55% – 8.80% | 8.45% – 8.70% | 0.50% (min ₹8,500) |
Eligibility Criteria for Bank of Baroda Home Loan (2019)
- Age: Minimum 21 years at loan application, maximum 65 years at loan maturity
- Income:
- Salaried: Minimum ₹25,000 monthly income
- Self-employed: Minimum ₹2 lakh annual income (ITR based)
- Employment Stability:
- Salaried: Minimum 2 years in current job, 3 years total experience
- Self-employed: Minimum 3 years in current business
- Credit Score: Minimum CIBIL score of 650 (preferably 700+ for best rates)
- Property: Must be residential (ready-to-move or under-construction)
Documents Required for Bank of Baroda Home Loan (2019)
For Salaried Applicants:
- Identity Proof (Aadhaar, PAN, Passport, Voter ID)
- Address Proof (Aadhaar, Passport, Utility Bills)
- Income Proof (Last 3 months salary slips, Form 16, 6 months bank statements)
- Employment Proof (Appointment letter, relieving letter from previous employer if any)
- Property Documents (Sale agreement, title deed, approved plan, NOC from builder)
- Passport size photographs
For Self-Employed Applicants:
- Identity and Address Proof (same as above)
- Income Proof (Last 3 years ITR with computation, P&L statement, Balance Sheet)
- Business Proof (Business license, GST registration, shop establishment certificate)
- 6 months bank statements (personal and business account)
- Property Documents (same as above)
- Passport size photographs
How Bank of Baroda Calculates Home Loan EMI
The Equated Monthly Installment (EMI) for Bank of Baroda home loans is calculated using the reducing balance method. The formula used is:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
Where:
P = Loan amount
R = Monthly interest rate (annual rate divided by 12 and by 100)
N = Loan tenure in months
For example, for a ₹50 lakh loan at 8.35% interest for 20 years:
- P = ₹50,00,000
- R = 8.35/(12×100) = 0.006958
- N = 20×12 = 240 months
- EMI = ₹41,759
- Total Interest = ₹50,22,160
- Total Amount = ₹1,00,22,160
Bank of Baroda Home Loan Interest Rate Trends (2017-2019)
| Year | Base Rate (p.a.) | MCLR 1 Year (p.a.) | Home Loan Rate (p.a.) | Repo Rate | Key Events |
|---|---|---|---|---|---|
| 2017 | 9.40% | 8.35% | 8.35% – 8.60% | 6.00% | GST implementation, RERA Act |
| 2018 | 9.25% | 8.40% | 8.40% – 8.65% | 6.25% – 6.50% | Two repo rate hikes by RBI |
| 2019 | 9.10% | 8.35% | 8.35% – 8.70% | 5.75% – 5.15% | Three repo rate cuts by RBI |
Tips to Get the Best Home Loan Rate from Bank of Baroda
- Maintain High Credit Score: A CIBIL score above 750 can help you negotiate better rates. Check your credit report regularly and correct any errors.
- Compare with Other Banks: Use this calculator to compare BoB’s rates with other PSU banks like SBI, PNB, and private banks like HDFC and ICICI.
- Negotiate Based on Relationship: If you’re an existing BoB customer with savings account, FD, or other loans, you may get preferential rates.
- Opt for Shorter Tenure: While EMIs will be higher, you’ll pay significantly less interest over the loan term.
- Consider Step-Up EMIs: If you expect income growth, opt for step-up EMIs where payments increase annually.
- Apply with Co-Applicant: Adding a co-applicant with good income can improve eligibility and help secure better rates.
- Look for Special Schemes: BoB often has limited-period offers like waived processing fees or reduced rates for specific customer segments.
Government Schemes Linked with Bank of Baroda Home Loans
In 2019, Bank of Baroda actively participated in several government housing schemes:
- Pradhan Mantri Awas Yojana (PMAY): Offered interest subsidy of up to 6.5% for eligible beneficiaries. The effective rate could be as low as 4% for EWS/LIG categories.
- EWS (Annual income up to ₹3 lakh): 6.5% subsidy on ₹6 lakh loan
- LIG (Annual income ₹3-6 lakh): 6.5% subsidy on ₹6 lakh loan
- MIG-I (Annual income ₹6-12 lakh): 4% subsidy on ₹9 lakh loan
- MIG-II (Annual income ₹12-18 lakh): 3% subsidy on ₹12 lakh loan
- Credit Linked Subsidy Scheme (CLSS): Implemented through PMAY for middle-income groups
- Affordable Housing Fund: BoB contributed to this fund created by NHB for priority sector lending
Tax Benefits on Bank of Baroda Home Loans (FY 2019-20)
Home loan borrowers could avail significant tax benefits under the Income Tax Act, 1961:
- Section 24(b): Deduction up to ₹2 lakh on interest paid for self-occupied property. For let-out properties, the entire interest is deductible without any limit.
- Section 80C: Deduction up to ₹1.5 lakh on principal repayment (part of overall ₹1.5 lakh limit including other investments).
- Section 80EE: Additional deduction of ₹50,000 for first-time homebuyers (for loans up to ₹35 lakh sanctioned in FY 2019-20).
- Section 80EEA: Additional deduction of ₹1.5 lakh for affordable housing loans (for loans sanctioned between April 1, 2019, and March 31, 2020).
Common Mistakes to Avoid When Taking a Bank of Baroda Home Loan
- Not Checking Eligibility First: Use BoB’s eligibility calculator before applying to understand your loan amount and tenure options.
- Ignoring Processing Fees: While 0.50% seems small, on a ₹50 lakh loan it’s ₹25,000 – factor this into your cost.
- Choosing Longest Tenure: While 30-year loans have lower EMIs, you’ll pay 2-3x the principal as interest.
- Not Reading Fine Print: Understand prepayment charges (nil for floating rate), foreclosure terms, and penalty clauses.
- Skipping Insurance: BoB offers home loan protection plans – consider them to cover unforeseen events.
- Not Comparing Offers: Even with attractive rates, compare BoB’s offer with at least 2-3 other banks.
- Hiding Existing Loans: Be transparent about all liabilities as they affect your eligibility.
How to Apply for Bank of Baroda Home Loan
In 2019, BoB offered multiple channels for home loan applications:
- Online Application:
- Visit Bank of Baroda’s official website
- Navigate to ‘Loans’ > ‘Home Loans’
- Fill the online application form
- Upload required documents
- Schedule property verification
- Branch Visit:
- Locate nearest BoB branch using branch locator
- Carry all original documents for verification
- Fill physical application form
- Branch executive will guide through process
- Through Channel Partners:
- BoB had tie-ups with real estate developers
- Special camps were organized at housing projects
- Often came with waived processing fees
- Phone Banking:
- Call BoB’s toll-free number 1800 258 4455
- Request callback from home loan specialist
- Get application form couriered to your address
Bank of Baroda Home Loan Customer Care (2019)
For any queries related to home loans in 2019, customers could reach out through:
- Toll-Free Number: 1800 258 4455 / 1800 102 4455
- Email: customer.care@bankofbaroda.com
- SMS: Send ‘UNHAPPY’ to 8422009988 for grievance redressal
- Branch Locator: Find nearest branch
- Twitter: @bankofbaroda (for quick responses)
Alternative Home Loan Options in 2019
While Bank of Baroda offered competitive rates, it was prudent to compare with other lenders:
| Bank | Interest Rate (2019) | Processing Fee | Max Tenure | Special Feature |
|---|---|---|---|---|
| State Bank of India | 8.40% – 8.75% | 0.35% (min ₹2,000) | 30 years | YONO app for instant approval |
| HDFC Bank | 8.55% – 9.00% | 0.50% (min ₹3,000) | 30 years | 10-second loan approval for pre-approved customers |
| ICICI Bank | 8.60% – 9.10% | 1.00% (min ₹1,500) | 30 years | Instant sanction for salaried customers |
| Punjab National Bank | 8.40% – 8.80% | 0.50% (min ₹1,000) | 30 years | Special rates for government employees |
| Axis Bank | 8.70% – 9.20% | 1.00% (min ₹10,000) | 30 years | Flexi EMI options available |
Impact of RBI Policy Changes on BoB Home Loan Rates in 2019
The Reserve Bank of India made several key policy changes in 2019 that affected home loan rates:
- Repo Rate Cuts: RBI reduced repo rate by 135 basis points in 2019 (from 6.25% to 5.15%), leading BoB to reduce its MCLR and home loan rates.
- External Benchmark Linking: From October 2019, all new floating rate loans had to be linked to external benchmarks (repo rate, 3-month/6-month T-bill yield). BoB linked its loans to repo rate.
- Risk Weights Revision: RBI reduced risk weights on consumer credit including home loans, allowing banks to lend more.
- LCR Norms Eased: Liquidity Coverage Ratio requirements were relaxed, improving liquidity for home loans.
- Priority Sector Lending: Limits for affordable housing loans under PSL were increased, benefiting BoB’s housing finance portfolio.
These changes made home loans more affordable, with BoB passing on rate cut benefits to customers through reduced EMIs or tenure.
Expert Opinions on Bank of Baroda Home Loans (2019)
Financial experts in 2019 generally viewed Bank of Baroda’s home loan offerings positively:
“Bank of Baroda’s home loan rates in 2019 were among the most competitive in the PSU banking space. Their transparent pricing and customer-friendly policies made them a preferred choice for first-time homebuyers. The bank’s strong balance sheet and government backing provided additional reassurance to borrowers.”
“The introduction of repo-rate linked loans by BoB in late 2019 was a game-changer. Borrowers could now benefit from immediate rate transmission when RBI changed policy rates, unlike the earlier MCLR system where banks took months to pass on benefits.”
Frequently Asked Questions About Bank of Baroda Home Loan (2019)
What was the lowest home loan interest rate offered by Bank of Baroda in 2019?
The lowest home loan interest rate offered by Bank of Baroda in 2019 was 8.35% per annum for salaried individuals. Women borrowers could avail loans at 8.30% under special schemes. These rates were for loans up to ₹30 lakh with tenure up to 20 years.
How did Bank of Baroda calculate the EMI for home loans in 2019?
Bank of Baroda used the reducing balance method to calculate EMIs. The formula was: EMI = [P x R x (1+R)^N] / [(1+R)^N – 1], where P is the loan amount, R is the monthly interest rate, and N is the loan tenure in months. The bank provided an online EMI calculator for prospective borrowers to estimate their payments.
What documents were required for a Bank of Baroda home loan in 2019?
The required documents included:
- Identity and address proof (Aadhaar, PAN, Passport, etc.)
- Income proof (salary slips, Form 16, ITR, bank statements)
- Employment/business proof
- Property documents (sale agreement, title deed, approved plan)
- Passport size photographs
- Processing fee cheque
Could I prepay my Bank of Baroda home loan in 2019 without charges?
Yes, Bank of Baroda allowed prepayment of floating rate home loans without any charges in 2019. For fixed rate loans, prepayment charges of up to 2% might apply. The bank encouraged prepayments as they reduced the interest burden for borrowers.
How long did it take for Bank of Baroda to process a home loan in 2019?
In 2019, Bank of Baroda typically processed home loan applications within 7-15 working days from the date of complete document submission. The timeline depended on property verification, legal checks, and the applicant’s credit profile. Some pre-approved customers received sanctions within 48 hours.
Authoritative Resources on Home Loans
For more information about home loans and interest rates, you can refer to these authoritative sources:
- Reserve Bank of India – Official Website: For information on monetary policy, repo rates, and banking regulations that affect home loan interest rates.
- Ministry of Housing and Urban Affairs: Government schemes like PMAY that were linked with Bank of Baroda home loans in 2019.
- National Housing Bank: Regulatory body for housing finance companies with research reports on home loan trends.
- India Brand Equity Foundation: Reports on the real estate sector and home loan market in India.
Conclusion
Bank of Baroda’s home loan offerings in 2019 stood out for their competitive interest rates, transparent pricing, and customer-centric features. With rates starting from 8.35% p.a., flexible repayment options up to 30 years, and minimal processing fees, BoB made home ownership accessible to a wide segment of the population.
The calculator above helps you estimate your EMI and total interest outgo based on 2019’s rates. However, it’s important to note that actual rates may vary based on your credit profile, loan amount, and the bank’s current policies. For the most accurate and updated information, always check with Bank of Baroda directly or visit their official website.
When considering a home loan, remember to:
- Compare offers from multiple lenders
- Understand all charges (processing fees, prepayment penalties)
- Calculate the total cost of borrowing, not just the EMI
- Check your eligibility before applying
- Maintain a good credit score for better terms
- Consider government schemes you might be eligible for
Home loans are long-term commitments, so make an informed decision that aligns with your financial goals and repayment capacity.