Bank of Baroda Loan Against Property

• It can be used for various purposes like business expansion, funding of children’s education vacation, etc.
• This loan provides a platform for generation of extra income through an idle property.
• This loan allows the user to deposit money, regular income, salary and also withdraw the same as per his/her convenience at no extra charges.
• This loan can be availed for in the form of an overdraft facility or as a demand loan, depending upon the customer’s requirement.
• Loan amount can range from Rs.1 lakh to a maximum of Rs.3 crores. However, the eligible loan amount also depends on residential area of the applicant.
• An applicant residing in rural area can apply for a maximum loan of Rs.10 lakhs, whereas applicants staying in semi-rural or urban areas can get a maximum loan amount of up to Rs.3 crores.
• The loan amount to be sanctioned varies depending on the applicant’s business profile. A salaried professional can avail loan of up to 36 times of his total monthly income, whereas, a self-employed professional can avail loans up to 5 times the average of his last three years annual income.
• The loan has to be repaid through EMI’s. However, the maximum number of EMI’s for payback of the loan is set at 84 by the bank.
• Simple Documentation:  As LAP being is a secured loan, documentation is simple.
• The bank also finances loans to individuals wishing to transfer their existing loans from other financial institutions to Bank of Baroda at low interest rates.
• The bank issues personal loan at an interest rate of 11.35% - 13.10%.

• Age: The age of an applicant should be 21-60 years in both the cases, salaried and non-salaried.
• Job Experience: The individual, if salaried should have a job experience of at least 3 years in total. The aggregate job experience in all organizations put together should at least be 3 years and not lower than 3 years else loan will not be allowed. Simply put, a salaried applicant with less than 3 years of job experience is not deemed suitable for a loan by the bank. However, the applicant if self-employed should have been in his current business for at least 3 years. The total years of the professional in his current business should not be less than 3 years and not lower than 3 years i.e. a minimum 3 years of business continuity in the existing business is required or else a loan will not be allotted to the applicant
• The gross annual income of the individual whether salaried or self-employed should be a minimum of Rs.60000 per annum which means that a professional in his current job/business must at least earn Rs.5000 per month and not lower than that.

From one year MCLR i.e. 9.25+1.75=11 + strategic premium (Which differs according to the applicant’s profile) to one year MCLR + 3.50+ strategic premium.

The bank levies following charges on all loans that it issues.

• Processing Fee: The bank levies a processing fee of 1% (in case of one time loan) of the loan amount, minimum of Rs.7500 and a maximum of Rs.50000. However, for loans availed under overdraft facility, whether a fresh sanction or a renewal, the bank levies a processing charge of 0.35% of the loan amount to be sanctioned is subject to a minimum of Rs.7500 and a maximum of Rs.75000.

The following documents need to be submitted for availing the loan against property:

• ID Proof
• Address Proof
• Last 3 months’ bank statement
• Latest Salary Slip
• DOB proof: Birth Certificate, Class 10^th passing certificate, PAN card, Passport copy

Apart from the above mentioned documents, a self-employed professional is required to submit a few more documents in order to avail a loan with the bank. The list of documents is given below:

• Income certificate from appropriate revenue authority like tehsildar/BDO/SDO is required. This is applicable only if the applicant is an agriculturist.
• Original title deeds of the property offered as security for availing the loan.
• Paid receipts of latest municipal taxes, water tax, maintenance tax or any such applicable taxes.
• Non encumbrance letter from co-op society.
• Permission to create equitable mortgage from society.

• Prepayment of the loan can be done without any charges if the loan is issued at a floating rate of interest and not at a fixed rate.
• The sanctioned loan is in the name of one or more individuals and not in the name of corporate entities.
• The borrower or the co-borrowers of the loan have to be individuals and not corporate entity i.e. the borrower cannot be a pvt. Ltd company or a firm i.e. partnership company or AOP.

• EMI is a fixed amount of money that the borrower pays to the bank towards repayment of his property loan every month on the specified date, till the debt is fully settled.
• EMI’S are calculated using a combination of loan amount, tenure and interest rates.
• EMI’s are calculated on a reducing balance basis.
• The EMI consists of both the principal amount and the accrued interest amount, payable over the loan tenure.
• Even though the EMI remains constant throughout the loan period, owing to regular payments the accrued interest amount keeps on decreasing, while the principal repayment amount keeps increasing, unless there is a sudden increase in the interest rate of the loan.
• Generally the EMI remains fixed throughout the loan tenure, however, the bank on the customer’s special request may allow to make changes to the same. The bank may charge an extra fee for processing any kind of changes in the existing EMI structure.
• The bank may choose to increase the loan tenure owing to a sudden increase in the interest rates in cases of floating rate type loans, thus, saving the applicant from paying a higher EMI. However, if the new tenure reaches beyond the permissible limit of 7 years, then the bank may also choose to increase the EMI amount.

BOB EMI calculators for Loan against property can help an individual to find out the Equated Monthly Instalments as per their eligibility. The loan applicant can visit Bank of Baroda’s official website any time to use the EMI calculator depending upon the principal amount of loan he/she wants to apply for. You just need to do is fill the amount along with prevailing interest rate. After selecting the desired amount and loan tenure i.e. repayment period you can see your EMI. The user can also try various options and find the suitable EMI option.

The applicant must keep a few points in mind before applying for a LAP with the bank:

• The CIBIL report of the applicant must not show any defaulted payments. IT means that the applicant must have a clear background in context of his liabilities in the form of payments towards his credit cards or existing EMI’S, if any.
• The property in question must not be unauthorized or vacant. All the legal documents pertaining to the property has to be submitted by the applicant to the bank.
• The applicant must have a minimum take away of 40% of his salary after deductions of all his payment liabilities in the form of credit card payment or any existing loan EMI’S.