Bank of Baroda home loan interest rate range is 6.85% to 9.00% p.a, it is one of the largest public sector banks in India. To know more about the BOB offers home loan and its associated rates, read further.
Bank of Baroda Home Loan Interest Rates 2020
|Loan Type||Interest Rates|
|BOB Housing Loan||6.85% onwards|
Compare with Other Banks
|BOB Home improvement loan||7.00% – 9.00%|
|Bank of Baroda Home Loan Advantage||7.00% – 9.25%|
Factors that Affect BOB Home Loan Interest Rate
- Loan Tenure: The longer the home loan period, the higher will be the rate of interest. This will also increase your credit cost as well. Thus a lower EMI that comes with a longer tenure will make you cough up a bigger interest amount.
- Change in MCLR: Home loan interest rates are linked to MCLR, hence change in the MCLR can change the interest rate across all lenders.
- Credit score: Credit score reflects how well you can manage your debt. Lenders prefer giving loans to applicants with good credit score as they carry less credit risk. On the other hand, applicants with poor credit score have more risk of defaulting on their loan payments. Even if the banks grant them loan, they do it at a higher interest rate. [Read Here: Getting Home Loan with Low Credit Score]
Ways to Lower Home Loan Interest Rate
The following are some of the ways to lower home loan interest rates:
- Improve your credit score to improve your creditworthiness
- Opt for shorter loan tenure and higher EMIs to reduce paying on interest amount
- Include an earning co-borrower to increase your home loan eligibility and repayment capacity
- Ask your wife to apply for the loan as women get concession on home loan interest rates
- Go for joint home loan.
Bank of Baroda Home Loan Interest Rate Calculator
Bank of Baroda use almost same factors which other Banks and NBFCs use to calculate Home Loan Interest rate. Though some additional factors that can help you to lower the interest rate are:
- Occupation of the borrowers: BOB charges slightly higher home loans interest rate for self employed than that of salaried borrowers.
- Amount of the Loan: Bank of Baroda offers loan of up to Rs. 25 Lakh at 7.25% and loans of above Rs. 25 Lakh at rates ranging from 7.25% to 7.25%.
- Existing bank customers: Bank of Baroda may also offer lower interest to the existing customer which has a bank account in BOB to maintain its relationship.
Bank of Baroda Home Loan Interest Rates FAQs
- How is the rate of interest calculated on the home loan?
Most banks have a single rate of interest for all customers and it does not usually vary. The only difference is that the fixed rate of interest will be slightly higher than the variable rate of Interest.
- Is it mandatory to pay only by the fixed rate of interest?
No, you can opt for the either fixed or floating type of interest. Depending on the type of interest you choose, you will have to repay accordingly; as per the changing MCLR.
- After availing a home loan, the rate of interest has risen. Can the bank help me?
Yes, the bank will help you. You can change your rate of interest as per the following switching amounts: Fees while switching from higher floating rate to lower is 0.5% of the outstanding principal Switching fees from floating rate to fixed rate of interest: 1% and cannot be greater than INR 10,000 Fees while switching from higher fixed rate to lower fixed rate is 0.5% of the outstanding principal Switching fees from fixed rate to floating rate of interest: 2%
- What is there-set date of a loan? How does it affect the interest rate applicable?
In cases of a re-set loan; the tenure will remain the same and there will be an increase or decrease in the rate of interest and thereby the EMI.