Bank of Baroda Home Loan Eligibility

Eligibility Criteria For Bank of Baroda Home Loan/ Baroda Home Loan Advantage/ Home Improvement Loan

Salaried and self-employed individuals can apply for Bank of Baroda Home Loan singly or jointly. Hindu Undivided Families (HUFs) are not eligible to apply for the loan.

Minimum Age: 21 years for applicants and 18 years for co-applicants

Maximum Age: 70 years

Resident Type: Resident Indians and Non-Resident Indians (NRIs) holding Indian passport/ Persons of Indian origin (PIOs) holding foreign passport/ Overseas Citizens of India (OCI)

Work Experience:

• For Resident Individuals: The applicant(s)/co-applicant(s) should have a job or business/profession for at least 1 year (for salaried) and/or 2 years (for non-salaried). Up to 3 months of break in service (if any) can be allowed.
• For Salaried NRIs/PIOs/OCIs: The applicant(s)/co-applicant(s) should have a regular job abroad in a reputed Indian/foreign company or government department holding a valid job contract/work permit for at least past 2 years.
• For Self-employed NRIs/PIOs/OCIs: The applicant(s)/co-applicant(s) should be employed or self-employed or have a business unit. They should be staying abroad at least for 2 years.

Income: The gross annual income of applicant(s)/co-applicant(s) should be at least Rs. 5 lakh p.a. In case the applicant(s)/co-applicant(s) is an NRI, the minimum gross annual income of Rs. 5 lakh (the income of applicant/co-applicant together) can be considered for these criteria.

Co-applicants: Applicants can add close relatives as co-applicants to increase their home loan eligibility criteria. An individual who is not a close relative can also be a co-applicant, provided he/she is the joint owner of the concerned property. These close relatives can be accepted as your close relatives – spouse, father, mother (including step mother), son (including step son), son’s wife, daughter (including step daughter), daughter’s husband, brother/sister (including stepbrother/sister), brother’s wife, sister (including step sister) of spouse, sister’s husband, brother (including step brother) of spouse.

Security

• Mortgage of the property constructed/purchased;
• If the mortgage is not feasible, Bank of Baroda Bank at its discretion can accept insurance policies, government promissory notes, shares and debentures, gold ornaments, etc. as security.

Repayment Capacity: The bank determines an applicant’s repayment capacity based on EMI/NMI ratio, which is the proportion of an applicant’s net monthly income that goes into paying his monthly loan obligations including the proposed EMI:

• Salaried Individuals

Net Monthly Income	EMI/NMI Ratio
Less than Rs. 25,000	40%
Rs. 25,000 and above but less than Rs. 50,000	60%
Rs. 50,000 and above but less than Rs. 1 lakh	65%
Rs. 1 lakh and above but less than Rs. 2 lakh	70%
Rs. 2 lakh and above	75%

• Others

Average Net Annual Income for Last 2 years	EMI/NMI Ratio
Up to Rs. 6 lakh	70%
More than Rs. 6 lakh	80%

Eligibility Criteria For Bank of Baroda Home Loan Takeover Scheme (Home Loan Balance Transfer)

Resident Type: Resident Indians and Non-Resident Indians (NRIs) holding Indian passport/ Persons of Indian origin (PIOs) holding foreign passport/ Overseas Citizens of India (OCI).

Minimum Age: 21 years for applicants and 18 years for co-applicants

Maximum Age: 70 years

Salaried and self-employed individuals can apply for Bank of Baroda Home Loan Balance Transfer singly or jointly. Non-individuals can be applicant/co-applicant/guarantor along with the individual applicant(s).

Other eligibility norms for individual applicants:

• The minimum cut off CIBIL score is 701.
• The applicant should have completed the moratorium period with the existing lender.
• The applicant should have paid at least 12 EMIs to the existing lender.
• The applicant should have satisfactory loan repayment behaviour.

Eligibility norms for non-individual applicants:

• There must be an individual applicant/co-applicant in the proposed facilities.
• Non-individual applicants should have paid at least 18 EMIs to the existing lender.
• The firm/company should be incorporated for a minimum of 5 years.
• The firm/company should be actively engaged in business activities for a minimum of 2 years.
• The firm/company should be earning the cash profits for past 2 years.
• The net worth of the firm/company should be positive.
• The firm/company should not have slipped into Special Mention Account (SMA 2) category during the last 12 months.
• CIBIL rating of the firm/company should be satisfactory.
• The name of the firm/company should not be in the RBI defaulter’s list, ECGC Caution list/SAL, Suit filed/Non-Suit filed CIBIL list, CRILIC, etc.

Security: Mortgage of the property constructed/purchased.

Repayment Capacity: The total deductions including the proposed EMI should not be more than:

• Salaried Individuals

Net Monthly Income	EMI/NMI Ratio
Less than Rs. 25,000	40%
Rs. 25,000 and above but less than Rs. 50,000	60%
Rs. 50,000 and above but less than Rs. 1 lakh	65%
Rs. 1 lakh and above but less than Rs. 2 lakh	70%
Rs. 2 lakh and above	75%

• Others

Average Net Annual Income for Last 2 years	EMI/NMI Ratio
Up to Rs. 6 lakh	70%
More than Rs. 6 lakh	80%

Bank of Baroda Pre-approved Home Loan

Bank of Baroda Pre-approved Home Loans are offered to select existing customers based on their income details and CIBIL scores as per the existing norms of Bank of Baroda Home Loan Scheme (to Resident Indians and NRIs/PIOs/OCIs) or Baroda Home Loan Advantage, as the case maybe.

Bank of Baroda Top Up Loan

All existing Bank of Baroda home loan borrowers including NRIs/PIOs are eligible to apply for Baroda Top Up home Loan.

Minimum Age: 21 years for applicants and 18 years for co-applicants

Maximum Age:

• For Resident Indians: The age of the borrower plus the Top Up Loan tenure should not be more than 70 years.
• For NRIs/PIOs/OCIs: The age of the borrower plus the Top Up Loan tenure should not be more than 65 years.

Security: Extension of equitable mortgage.

Repayment Capacity: The total deductions including the proposed EMI should not be more than:

• Salaried Individuals

Net Monthly Income	EMI/NMI Ratio
Less than Rs. 25,000	40%
Rs. 25,000 and above but less than Rs. 50,000	60%
Rs. 50,000 and above but less than Rs. 1 lakh	65%
Rs. 1 lakh and above but less than Rs. 2 lakh	70%
Rs. 2 lakh and above	75%

• Others

Average Net Annual Income for Last 2 years	EMI/NMI Ratio
Up to Rs. 6 lakh	70%
More than Rs. 6 lakh	80%

Bank of Baroda Home Suvidha Personal Loan

• Prospective home loan borrowers including those who are planning to transfer their housing loans to Bank of Baroda.
• Existing borrowers under Bank of Baroda Home Loan scheme are also eligible to avail Baroda Home Suvidha Personal Loan.

Credit Risk Guarantee Fund Scheme for Low Income Housing

• Eligible borrowers are individuals falling under EWS/LIG income group seeking home loans of up to Rs 8 lakh for a housing unit of up to 430 sq. ft. (40 sq. m.) carpet area, to which housing loan has been provided without collateral security and/or third-party guarantee.
• Eligible borrowers, as defined in the above point, forming a group or housing society of at least 20 members are eligible for this scheme.
• Eligible borrowers at any time should not have availed any other home loan covered under this scheme. The borrower should also not have availed any additional risk cover on the home loan availed by her/him by the Government/ by any general insurer/ any institution/ any other person/ association of persons carrying on the business of insurance, guarantee or indemnity.
• Moreover, home loans availed fully/ partly for renovation/repairs are not eligible for the Guarantee Cover under the scheme.

Tips to Improve Bank of Baroda Home Loan Eligibility

Improve your Credit Scores

Credit score is one of the most important parameters for determining home loan eligibility of an applicant. Bank of Baroda has not specified the cut-off credit score for its home loan applicants. However, lenders prefer sanctioning home loans to applicants having credit scores of 750 and above. Hence, applicants having higher credit scores have higher chances of getting approval on their home loan applications. Such excellent credit scores can also help them get lower home loan interest rates as many lenders set interest rates on the basis of their applicants’ credit scores.

Prospective homebuyers can maintain or improve their credit scores by following healthy credit practices such as paying EMIs/credit card bills by their due dates; avoiding multiple credit applications within short period; monitoring loans guaranteed/co-signed by them; reviewing their credit reports periodically to identify any errors in them and get it rectified.

Opt for Longer Loan Tenure

Bank of Baroda Home Loans have repayment period of up to 30 years, including the maximum moratorium period of 36 months. Lenders usually approve home loan applications of individuals whose total monthly loan repayment obligations, including EMI of the proposed loan, does not exceed 50% of their total monthly income. As a longer tenure leads to lower EMIs, those having inadequate repayment capacity can increase their chances of loan approval by extending their loan tenure. Home loan applicants can use Paisabazaar’s home loan EMI calculator to know their optimum EMIs and tenures on the basis of their repayment capacity.

Add a Co-applicant

Home Loan applicants having insufficient income or low credit scores can improve their chances of availing Bank of Baroda Home Loan by adding a co-applicant. Adding a co-applicant will make him/her equally liable for making loan payments, which in turn will reduce the bank’s credit risk. Bank of Baroda allows applicants to add their close relatives as co-applicants such as their spouse, father, mother (including step mother), son (including step son), son’s wife, daughter (including step daughter), daughter’s husband, brother/sister (including stepbrother/sister), brother’s wife, sister (including step sister) of spouse, sister’s husband, brother (including step brother) of spouse. Individuals who are not a close relative can also be a co-applicant, provided he/she is the joint owner of the concerned property.

Contribute Adequate Funds Towards Down Payment

Bank of Baroda can finance up to 90% of a property’s value through home loan, which means the remaining 10% will be paid by the applicant via down payment or margin contribution. As higher down payment lowers credit risk for lenders, applicants contributing more towards down payment can increase their chances of availing Bank of Baroda Home Loan.

Bank of Baroda has set the margin norms and LTV ratio for home loan as per the CIBIL score of the applicant and loan amount, illustrated as below:

Loan Amount	Margin	Maximum allowed LTV ratio
Loans up to Rs. 30 lakh	Up to 10%	Up to 90%
Loans above Rs. 30 lakh & Up to Rs. 1 crore	Up to 10%	Up to 90%
Loans above Rs. 1 crore	Up to 10%	CIBIL Score	LTV Ratio
		Up to 730	75%
		More than 730 & Up to 770	85%
		More than 770	90%

Bank of Baroda Home Loan Eligibility Calculator

Prospective homebuyers can determine their eligibility for Bank of Baroda Home Loan using a Home Loan Eligibility Calculator, which is easily available online on the bank’s website. This online calculator calculates your eligible loan amount on the basis of the details you enter such as your age, loan tenure, net adjusted monthly income, existing loan EMI obligations and applicable home loan interest rate. Besides these parameters, the bank also looks into several other parameters such as the applicant’s credit score, employer’s profile and physical condition and market value of the concerned property.