Get the Best Personal Loan Offer 
Bank of Baroda offers personal loans of up to Rs. 10 lakh to deal with various financial situations like medical expenses, wedding, vacation, purchase of consumer durables, etc. These loans can be availed by both salaried professionals as well as self-employed individuals. The interest rate for these loans starts as low as 10.50% p.a. and the repayment tenure can go up to 60 months. Various key aspects relating to BoB personal loan interest rate such as the bank’s interest calculation method, factors affecting interest rate, etc. are discussed in detail below:
Table of Contents:
- Bank of Baroda Personal Loan Interest Rates
- Personal Loan Interest Rates for Different Categories of Borrowers
- Bank of Baroda Interest Rate for Different Types of Loans
- Bank of Baroda Reducing Balance vs Flat Rate Interest Calculation
- EMI Calculation Using Reducing Interest Rate
- EMI Calculation Using Flat Interest Rate
- Bank of Baroda Personal Loan Interest Calculation
- Bank of Baroda Interest Rate Comparison
- How to Get Low Interest Rates on Bank of Baroda Personal Loan
- Factors Affecting Interest Rates
- FAQs
Bank of Baroda Personal Loan Interest Rates
Interest rate on Bank of Baroda personal loans starts as low as 10.50% p.a. Specific interest rate however depends upon additional factors such as the applicant’s profile, bank’s internal criteria, etc. The bank offers personal loans to salaried professionals, self-employed professionals and self-employed business persons. Borrowers’ existing relationship with the bank- whether he/she has any existing relationship with the bank or no prior BoB relationship, is another key factor that affects the rate of interest charged on personal loans.
Personal Loan Interest Rates for Different Categories of Borrowers
The Bank of Baroda personal loan interest rates for different categories of borrowers are as follows:
| Personal Loan Type | Interest Rate (p.a.) |
| Bank of Baroda Personal Loan for Salary account holders | Starting at 10.50% |
| Bank of Baroda Personal Loan for other account holders | Starting at 10.50% |
| Bank of Baroda Personal Loan for other applicants (no prior BoB relationship) | Starting at 12.50% |
Bank of Baroda Interest Rate for Different Types of Loans
At present, the bank does not categorize its personal loan offers based on either applicant type or end use. The interest rate for borrowers having existing relationship with the bank starts as low as 10.50% p.a., whereas, 12.50% p.a. is the lowest rate offered to other personal loan applicants (those having no prior relationship with the bank).
Bank of Baroda Reducing Balance vs Flat Rate Interest Calculation
Flat Balance method of interest calculation involves calculating interest on the full loan principal amount during the entire loan tenure. Whereas, in case of diminishing/reducing balance interest calculation, interest is calculated only on the outstanding loan principal every month. Thus in case of the reducing balance method the interest accrued decreases as the outstanding loan amount decreases every month.
Therefore, reducing balance method of interest calculation leads to a lower total interest payout as compared to the flat balance method. Bank of Baroda currently uses the reducing interest rate method to calculate the interest payable on personal loans.
EMI Calculation Using Reducing Interest Rate
The table below depicts monthly EMIs calculated using the reducing balance method of interest calculation for different loan amounts, interest rates and loan tenures:
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||||
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 1 lakh @ 12% p.a. | 8,885 | 4,707 | 3,321 | 2,633 | 2,224 |
| 5 lakh @ 16% p.a. | 45,365 | 24,482 | 17,579 | 14,170 | 12,159 |
Read more about Bank of Baroda Personal Loan EMI Calculator.
EMI Calculation Using Flat Interest Rate
The table below depicts monthly EMIs calculated using the flat balance method of interest calculation for different loan amounts, interest rates and loan tenures:
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||||
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 1 lakh @ 12% p.a. | 9,333 | 5,167 | 3,778 | 3,083 | 2,667 |
| 5 lakh @ 16% p.a. | 48,333 | 27,500 | 20,556 | 17,083 | 15,000 |
Bank of Baroda Personal Loan Interest Calculation
The rate of interest on Bank of Baroda personal loan starts at 10.00% p.a. The given table depicts the total interest payout, total amount repaid and the proportion of interest in total amount repaid for different loan amounts, tenures and interest rates.
| Loan Amount (Rs.) | Tenure (years) | Total Interest Payout (Rs.) | Total Amount Repaid (Rs.) | Proportion of Interest in Total Amount Repaid |
| 5 lakh @ 12% | 1 | 33,093 | 5,33,093 | 6% |
| 7 lakh @ 13% | 3 | 1,49,088 | 8,49,088 | 18% |
| 10 lakh @ 16% | 5 | 4,59,083 | 14,59,083 | 31% |
Bank of Baroda Interest Rate Comparison
The table below gives a comparison of the key features of a personal loan from Bank of Baroda with other top lenders in India:
| Particulars | Bank of Baroda | ICICI Bank | Citi Bank | Axis Bank | HDFC Bank | State Bank of India |
| Interest Rate | Starting from 10.50% | Starting from 10.50% | Starting from 9.99% | Starting from 10.49% | Starting from 10.50% | Starting from 9.60% |
| Tenure | Up to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months | Up to 72 months |
| Loan amount | Up to 10 lakh | Up to Rs. 25 lakh | Up to Rs. 30 lakh | Rs. 50,000 to Rs. 15 lakh | Up to Rs. 40 lakh | Up to Rs. 20 lakh |
| Processing Fee | 2% of loan amount | Up to 2.25% of loan amount plus GST | Up to 3% of the loan amount | Up to 2% of loan amount | Up to 2.50% of the loan amount | Up to 1.5% of the loan amount |
How to Get Low Interest Rates on Bank of Baroda Personal Loan?
You can avail personal loan from Bank of Baroda at lower rates of interest in the following ways:
- Maintain a high credit score
- Have a good existing relationship with the bank
- Reduce your existing debt
- Pay your loan EMIs and credit card dues on time
- Maintain a stable employment record
Factors Affecting Interest Rates
Key factors which affect Bank of Baroda personal loan interest rates are discussed below:
- Applicant’s Age: The age of the applicant affects the interest charged by the lender. Typically, the closer you are to retirement, the higher is the interest rate
- Credit Score: Credit score is a significant indicator of your past credit behaviour and repayment capacity. A score closer to 900 is generally considered to be a good score. A high credit score generally results in the applicant being charged a lower rate of interest and vice versa
- Relationship with the bank: Having an existing/prior relationship with the bank like a savings account or a credit card, may result in the applicant being charged a lower rate of interest on personal loans
- Income: When deciding upon the interest rate, lenders often take the applicant’s income into consideration. Applicants with higher incomes are usually charged a lower rate of interest on personal loans as they are expected to have better repayment capacity and pose lower risk to the lender. Whereas, a higher rate of interest may be charged from applicants with lower annual incomes
- Employment Details: Lenders may offer personal loans at a lower rate of interest to applicants working with reputed organisations. Interest rate may also be affected by the applicant’s nature of employment -whether he/she is salaried or self-employed
FAQs
Q1. What is Bank of Baroda personal loan interest rate per annum?
The interest rate on Bank of Baroda personal loans starts at 10.50% p.a.
Q2. What is Bank of Baroda personal loan interest rate for existing customers?
In case you have an existing relationship with the bank, the interest rate on personal loans starts as low as 10.50% p.a. Whereas, for new customers, personal loan interest rate starts at 12.50% p.a.
Q3. Who can avail a personal loan from Bank of Baroda?
All salaried professionals, self-employed professionals and business persons can avail a personal loan from Bank of Baroda subject to some key terms and conditions.
Q4. What is the maximum amount for which I can avail a personal loan from the bank?
Applicants residing in metros and urban areas can avail a personal loan up to Rs. 10 lakh. Whereas, for those residing in semi-urban and rural areas, the maximum personal loan amount is capped at Rs. 5 lakh.
Q5. How is interest payable by a particular applicant determined?
The interest payable on Bank of Baroda personal loans currently starts as low as 10.50% p.a. However, specific interest rates charged to an applicant depends upon various factors like the person’s credit score, income, loan amount desired, existing relationship with the bank, etc.
Q6. How can Bank of Baroda personal loan be repaid?
You can repay your BoB personal loan in easy EMIs within a tenure ranging from 12 to 60 months.
Q7. What are the different personal loan options available with Bank of Baroda?
Currently the bank does not categorize its personal loan offers based on either end use or applicant type. However, the personal loan offered by the bank can be used to meet various financial needs including medical or travel expenses, home renovation, etc.
Q8. Are there any fees and charges other than interest charges on Bank of Baroda personal loans?
Yes, Bank of Baroda currently levies a processing fee of 2% on the loan amount disbursed in case of personal loans.
