Some of the main factors affecting the Bank of Baroda interest rates for its personal loan applicants are as follows:
Credit Scores
Bank of Baroda Personal Loan interest rates offered to various categories of personal loan applicants have been linked with the CIBIL score of its loan applicants. Thus, personal loan applicants having higher credit scores could be offered lower interest rates for their personal loans. However, the lender has not disclosed its personal loan interest rate matrix based on the loan applicants’ CIBIL/credit scores.
Bank of Baroda Personal Loan applicants can follow healthy credit practices like payment of EMIs/credit card bills on time, avoiding multiple loan or credit card applications within a short duration, maintaining a healthy credit mix, etc. to maintain or improve their credit scores. Loan applicants who implement these steps can increase their credit scores and thereby improve their eligibility for availing personal loans. Personal loan applicants should regularly review their credit report to identify mistakes and draw the attention of their lender or credit bureaus towards the same. Any error present in the credit reports can decrease the credit scores of loan applicants and negatively impact their personal loan eligibility along with reducing their chances of availing lower Bank of Baroda Personal Loan interest rates.
Income
Although the bank has not specified providing preferential Bank of Baroda Personal Loan Interest Rates for personal loan applicants based on their income, many lenders provide lower interest rates for personal loans to applicants having higher monthly incomes. This is because higher income usually leads to higher loan repayment capacity for personal loan borrowers, thus, which in turn reduces credit risk for the lenders. Lenders can pass this benefit to borrowers by providing them personal loans at lower interest rates.
Occupation Profile
Bank of Baroda Personal Loan interest rates are based on the employer’s profile with the lender providing differential interest rates for employees based on whether they are self-employed or salaries and further, on the basis of their employer’s profile (in case of salaried employees). Note that many banks/NBFCs provide lower interest rates on personal loans for salaried applicants as compared to personal loans for self-employed individuals. Within salaried applicants, employees working for government/PSUs are offered personal loans at lower rates of interest as they have higher income/job security versus other salaried applicants. Lenders also provide lower interest rates to individuals working in MNCs or well-known private sector companies as they can weather adverse economic conditions much better than other private sector organisations.
Existing Relationship with Bank of Baroda
The interest rates on Bank of Baroda Personal Loans are lower for existing customers having a lending/banking relationship with the lender. Hence, existing BoB customers, especially those maintaining their salary account with the lender, should first contact it for personal loans, as they have higher chances of availing Bank of Baroda Personal Loans at favourable interest rates.
