Personal Loan

Baroda Personal Loan – This loan is offered by the bank to applicants for personal expenses. However, the loan cannot be used for speculation purpose. The loan is categorised into three sub-sections, namely, retail loans, agriculture loans and SME loans.
Key features of Baroda Personal Loans:

• This loan is sanctioned to all personal requirements other than speculations.
• This loan is granted to the salaried class, self-employed individuals, government employees, defence personnel, etc.
• Staff members are not eligible for this loan.
• The minimum age to apply for this loan is 21 years.
• The maximum age to apply for this loan:
  • For salaried individuals – Age plus repayment period should not exceed the retirement age or 60 years, whichever is minimum.
  • For self-employed individuals – Age of the borrower plus the repayment period should not be more than 65 years.
• The maximum amount sanctioned by the bank is Rs 10 Lakhs in urban centres and metros whereas semi-urban and rural branches approve loans of up to Rs 5 Lakhs.
• The minimum amount sanctioned by the bank is Rs 1 Lakh in metro and urban centres whereas it is Rs 50,000 for semi-urban and rural branches.
• 2% processing charge with a minimum of Rs 1,000 and a maximum of Rs 10,000 is levied by the bank on customers.

Baroda Home loan Suraksha personal loan - Bank of Baroda also extends personal loans to its existing home loan borrowers for the purpose of funding life insurance premium for Group credit life insurance in the form of Baroda Home Loan Suraksha personal loan.

• This BOB Personal loan is extended as a personal loan for funding the premium amount under group credit life insurance issued by M/s. IndiaFirst Insurance Co. or M/s. Kotak Life Insurance. This scheme is available exclusively to home loan borrowers.
• This BOB personal loan is sanctioned along with Baroda home loans. However, for all the existing home loan borrowers this facility has to be availed separately.
• In case the borrower wishes to close his/her loan account, then he/she will have to also close this personal account.
• The income details of the customer as per the existing criteria of home loans to Resident Indians or NRI/PIO or Baroda Home loan advantage scheme will be the deciding factor of the eligible loan amount.
• The maximum amount of BOB personal loan issued is subject to the amount of the premium for Group Credit Life Insurance cover for home loan borrowers and co borrowers.
• The age criteria and other charges are same as the Home Loan guidelines.
• The repayment period for the new borrowers is set at a minimum of 50% of the original home loan period.

BOB Pension Loan – Bank of Baroda offers personal loan which is specifically provided to individuals who are earning a pension. The features of the loan include:

• The BOB Pension loan granted can be used for any purpose except for speculation.
• The loan is available to regular or family pensioners or retired members of the Bank of Baroda or their family pensioners. Family pensioners include the spouse of the pensioner who receives the pension after the death of the pensioner.
• 18 times the monthly pension is the maximum amount of loan available under this loan scheme
• For regular pensioners, the absolute amount of maximum loan depends on the age of the pensioner. For individuals aged up to 70 years, the amount is Rs.8 Lakhs while for individuals aged above, the maximum amount is Rs.5 Lakhs. For family pensioners, the amount is Rs.3 Lakhs for ages up to 70 years and Rs.1.5 Lakhs for higher age.
• The applicant should repay BOB Personal Loan within 60 months if the pensioner’s age is up to 70 years and within 36 months if pensioners are above 70 years of age.
• The rate of interest charged on the loan is 2% higher than the base rate for normal pensioners. If the pensioner was a Bank of Baroda member, the rate of interest charged would be the Base Rate only.
• For failing the payment of any installment, the bank would charge a penal interest at the rate of 2% on the amount of loan outstanding as on the date of default
• Prepayment facility is available where the loan can be prepaid without incurring any additional charges.
• Other pensioners are required to pay Rs 1000 as the loan processing fee. This fee is waived for the family pensioners or regular pensioners who are Bank of Baroda members.
• Details of pension or PPO number is required along with other necessary documents in case of this loan.

Read More: 5 Tips to Get Your Personal Loan Approved

Before applying for BOB Personal Loan, you need to check whether you are eligible to apply for a BOB Personal Loan. Not everyone can avail a personal loan easily. There are necessary criteria to be fulfilled and only then the bank will grant you the loan and every applicant is required to fulfil the stipulated criteria. Below is a list of eligibility criteria required for the applicant to match so that he or she will be eligible to seek a loan from the bank.

• Age: The individual should be 21. So anyone who is aged 21 years and above can easily avail the loan if he or she matches the other mandated criterion.

• The loan is issued to salaried individuals including doctors, CAs, employees of private limited companies, employees of public sector companies including central, state and local bodies. So anyone who is an employee; be it a general employee or professional employee can apply for a BOB personal loan.
• Government employees include any individual working for any government organization whether it is a local organization; state based organization or a central organization as long as they draw a salary. However, the employee must be a permanent confirmed employee of the organization. This facility is not available for temporary employees or interns.
• The loan is issued to all non-salaried, self-employed professionals including doctors, architects, engineers, interior designers, chartered accountants, technical and management consultants and practicing company secretaries.
• Basically, anyone having a sound source of income along with business stability can apply for a loan with the bank.
• The loan is also extended to insurance agents with a minimum job experience of 5 years in the insurance business. It means that any insurance agent not having a job experience of 5 years is not eligible for a loan. Moreover, the agent must also have a steady income inflow along with a regular savings account. The savings account must be in use by the agent to deposit the commission cheques received by him.
• This loan cannot be availed by the employees of partnership firms, proprietorship firms or Pvt. Ltd. Co.
• The net annual income required for BOB Personal Loan of the salaried individual, applying for loans under Category-A should be a minimum of Rs 1,20,000 per annum which means that a professional in his current job/business must have a minimum net pay of Rs 10,000 per month and not lower than that, whereas, the net annual income of the salaried individual, applying for loans under Category-B should be a minimum of Rs 1,80,000 which means that a professional in his current job/business must have a minimum net pay of Rs 15,000 per month and not lower than that. The income criterion is listed as an eligibility pointer simply because of the fact that the bank wants to determine the loan repayment credibility of the individual.

Eligibility for BOB Pension Loan:

• Pensioners who are receiving a pension from the Bank of Baroda branches, or disbursed through Treasury or DPDO scheme directly in the Savings Account maintained with the bank or pensioners and family pensioners of individuals who were the bank’s members are eligible to avail this loan.
• In case of a family pensioner, the spouse should be authorized to collect the pension and the pensioner must have had received pensions through the bank’s accounts for at least 3 months and his accounts reflected no negative financial transaction.
• The minimum and maximum age criterion is 21 years and 75 years respectively.

Amount of Loan:

• An applicant can avail BOB personal loans varying from an amount of minimum of Rs 20,000 to a maximum of Rs 2 Lakhs. However, the loan amount eligibility depends upon the business profile of the applicant.
• A civil applicant drawing regular pension is eligible for a loan of Rs 1 Lakh and below i.e., he cannot apply for a loan above Rs 1 Lakh.
• A defence applicant drawing regular pension is eligible for a loan of Rs 2 Lakhs and below i.e., He cannot apply for a loan above Rs 2 Lakhs.
• However, the bank sanctions a loan amounting to as high as Rs 5 Lakhs for all applicants in need of funds towards security deposit for the purchase of a flat or plot.
• An individual applying for a personal loan under Category A can avail a maximum loan amount of Rs 10 Lakhs or 24 times his net monthly income, whichever is lower.
• An individual applying for a personal loan under Category B can avail a maximum loan amount of Rs 5 Lakhs or 24 times his net monthly income, whichever is lower.

In case of BOB personal loans issued under floating rate method, the interest rate for personal loans is linked to the existing MCLR. MCLR is the lowest interest rate at which the bank can issue loans. The bank cannot offer any BOB personal loan at an interest rate lower than the existing MCLR. The MCLR of the bank is affected by changing trends in the market rate. In case of a sudden increase in the market rate, the MCLR goes up, thereby, increasing the existing interest rate on all the loans issued by the bank. However, in case of a sudden fall in the market rate, even though the MCLR goes down, the bank cannot decrease its interest rates on all BOB personal loan issued beneath the permissible base rate. The current MCLR of the bank stands at the rate of 8.45%.

Interest rate range for existing customers having account relationship of minimum 6 months is equal to
One year MCLR +SP+3.00% to One year MCLR +SP+ 6.00%
(As per Risk Rating of the applicants.)

Other cases: i.e. for applicants having account relationship with other banks at least for 6 months.
One year MCLR +SP+5.00% - One year MCLR +SP+ 8.00%
(As per Risk Rating of the applicants)

Fees and charges: the bank levies certain fees and charges on all personal loan requests. Given below is the detailed list of the charges:

1. Unified Processing Fees: The bank charges a unified processing fee consisting of the processing fee, documentation fee, document verification fee, pre and one time post sanction verification fee standing at the rate of 2% of the loan amount or Rs 250, whichever is higher. In case of loans issued to pensioners it charges processing fee of Rs100, and in case of loans issued for deposits, it charges a processing fee standing at the rate of 0.35% of the loan amount. The charges mentioned are exclusive of the GST. Applicable GST will be charged over and above the mentioned charges.
2. Inspection Charges: The bank reserves the right to inspect the borrower’s property as per its will. However, the bank does levy any kind of charge as inspection fee.
3. Legal Opinion and valuation charges: The bank charges certain amount as legal fee for obtainment of a legal opinion on deeds of the BOB Personal loans, through a lawyer appointed by the bank. However, these charges are to be recovered on an actual basis in addition to the unified processing charges.
4. Other charges: Apart from the above mentioned charges, the bank also levies certain fees for stamp duty for execution of the documentation, statutory levies as applicable and other related charges. These charges are to be paid by the applicant.
5. Prepayment charge: The bank does not levy any charge on pre-closure of the BOB personal loan.
6. Penal Charges: The applicant must make sure that the EMIs are paid well on time; otherwise the bank levies an overdue fee  at the rate of 2% on the BOB Personal Loan EMI, calculated from the period of due date to the actual date of payment.
7. CIBIL report: The bank is authorized to issue the applicant’s CIBIL report to any Government-authorized credit bureau without any prior notice to the applicant.

However, certain points have to be kept in mind before you apply for a BOB Personal Loan:

• The processing charges are subject to upfront recovery i.e. the bank charges processing fee immediately after the sanctioning of the BOB Personal Loan.
• The bank may refund 50% of the processing charge, if the loan amount has been sanctioned but not availed by the borrower.
• The bank does not levy any processing charges in cases of loans (up to Rs 5 Lakhs) which are not sanctioned by the bank.
• The maximum repayment tenure for BOB Personal Loan is set at 7 years i.e. the individual is required to pay off the BOB Personal loan within 84 equated monthly instalments.
• The repayment capacity of the individuals is calculated taking into consideration total deductions such as income tax, PF, professional tax, EMIs of existing borrowings and other deductions. The total deductions added to the EMI of the proposed loan should not exceed 60% of the applicant’s gross monthly income. If the deductions exceed the given criteria, then the applicant is deemed ineligible for the BOB personal loan.
• The maximum repayment period depends on the retirement age of the applicant at the time of maturity of the BOB personal loan i.e. the repayment tenure added to the applicant’s age should not cross the retirement age of the applicant at the time of maturity of the loan.

The following documents are required while availing of a Personal Loan from Bank of Baroda.

For salaried individuals	For self-employed individuals
Any of the following identity proof: Valid Passport Valid Driving License Voter ID card PAN card Aadhaar Card Valid ID Card Letters issued by Unique Identification Authority of India	Any of the following identity proof: Valid Passport Valid Driving License Voter ID card PAN card Valid ID Card Professional License with photograph Trade License with Photograph
Residence Proof Valid Passport Valid Driving License Voter ID card Valid ID Card Utility Bill not older than 3 months Ration Card Letter from Employer Lease Deed or Rent agreement Bank statement of last 3 months Mutual fund Statement Latest ITR Original Letter form Company	Residence proof Valid Passport Valid Driving License Voter ID card Valid ID Card Utility Bill not older than 3 months Ration Card Letter from Employer Lease Deed or Rent agreement Bank statement of last 3 months Mutual fund Statement Latest ITR
Proof of age Birth Certificate School Leaving Certificate Passport Voter card with DOB College Certificate DOB on tax return PAN Card Company ID/HR confirmation	Proof of age Birth Certificate School Leaving Certificate Passport Voter card with DOB College Certificate DOB on tax return PAN Card
Photographs	Photographs
Length of employment Letter from employer Old pay slip or Form 16 HR checked by designated CPA resource	Proof of continuity of business Lease Deed or Rent Receipts Ownership Documents Utility bills Tax returns form same city 3 year old bank statements
Income Proof 2 salary slips not more than 3 months old Latest Form 16 Last 3 months’ bank statements (where the salary/ income is credited)	Income Proof Last 2 years’ ITR Computation of Income Schedule P & L Account Balance sheet Audit report Above reports certified by CA Last 6 months’ bank statements

To eliminate all the hassle, you can apply for a Bank of Baroda personal loan online. Visit the Paisabazaar website and click on personal loan. You will be redirected to a new page, where you will need to enter your personal details and will be able to apply for the loan after checking your eligibility.

Also, bank offers Personal Loans through the branches of the bank. Any customer wanting to avail of any of the Personal Loans offered by the bank should visit the nearest branch of the bank and apply for the loan. The application form is available at the branch which should be filled up by the applicant and after attaching required documents, the form should be submitted. The bank will check the required details and issue the loan to the applicant.