Bank of Baroda is one of India’s leading public sector banks and a strong competitor in the home loan segment. It offers a wide variety of housing finance options, attractive interest rates, and borrower-friendly features like overdraft facilities and zero prepayment penalties. In 2025, BoB continues to be a popular choice for both salaried and self-employed individuals.
Key Features of BoB Home Loan
- Loan Amount: Up to ₹20 crore (depending on city and borrower profile)
- Tenure: Up to 30 years
- Interest Type: Floating and fixed both available
- Processing Time: 5 to 10 working days on average
- Security: Mortgage of the property being financed
Interest Rates (2025)
Floating Interest Rate (linked to Repo Rate):
- Starts from 8.00% p.a.
- Usually ranges between 8.15% to 10.30% p.a. depending on:
- Credit score
- Loan amount
- Employment type (salaried/self-employed)
- Borrower category (women, under 40, etc.)
- Credit score
Fixed Interest Rate:
- Ranges between 9.65% to 10.75% p.a.
- Typically opted for by borrowers preferring EMI stability
Special Concessions:
- Women applicants: Up to 0.05% rate concession
- Applicants below 40 years of age: Additional discounts available
- High credit score (750+): Better interest offers
Loan Types Offered by BoB
- Standard Home Loan – Purchase or construction of residential property
- Plot + Construction Loan – Buy land and build home on it
- Home Improvement Loan – Renovations or upgrades to an existing home
- Top-Up Loan – Additional funding over an existing home loan
- Balance Transfer – Transfer existing home loan from another bank to BoB
- Home Loan Advantage – Overdraft facility to save on interest using surplus funds
- Pravasi Home Loan – Designed for NRIs and PIOs
Eligibility Criteria
- Age: 21 to 70 years (at the time of loan maturity)
- Employment: Salaried, self-employed, business owners, NRIs
- Credit Score: Minimum 700 recommended (750+ preferred for best rates)
- Co-Applicants: Allowed; can improve eligibility and reduce interest
Documentation Required
- Identity Proof: Aadhaar, PAN, Passport, etc.
- Address Proof: Utility bill, rental agreement, passport, etc.
- Income Proof:
- Salaried: Salary slips, Form 16, bank statements
- Self-Employed: ITRs, business proof, audited financials
- Salaried: Salary slips, Form 16, bank statements
- Property Documents: Sale agreement, allotment letter, title deed
- Photographs: Passport-sized
Fees and Charges
- Processing Fee:
- Up to ₹50 lakh: 0.50% (min ₹8,500–15,000)
- Above ₹50 lakh: 0.25% (min ₹8,500–25,000)
- Up to ₹50 lakh: 0.50% (min ₹8,500–15,000)
- Legal & Valuation Charges: Actuals, typically ₹5,000–₹15,000
- Prepayment Charges:
- Floating Rate: Nil
- Fixed Rate: 2% (only if paid from non-borrower source)
- Floating Rate: Nil
- Conversion Fee: If you want to lower your interest by switching spread – around ₹5,000–₹10,000
Unique Feature: Home Loan Advantage (Overdraft Facility)
- Linked to a current/savings account
- Any surplus amount deposited in the account reduces daily interest
- Excellent for salaried professionals with fluctuating monthly cash flow
- Helps save interest and reduce overall loan tenure
Pros and Cons
Advantages:
- Competitive floating rates (starting from 8.00% p.a.)
- No prepayment penalty for floating-rate loans
- Overdraft-linked loan helps save on interest
- Loans available for NRIs and PIOs
- Fast approvals with digital application options
Disadvantages:
- Upfront costs (valuation/legal/processing) can add up
- Fixed rate loans have prepayment penalty if paid from outside sources
- Customers must proactively request rate revision if repo rate drops
Practical Tips for Applicants
- Maintain a credit score above 750 to secure lowest interest rates.
- Apply jointly (e.g., with spouse) to increase eligibility.
- Opt for floating rate to enjoy lower EMIs and no prepayment charges.
- Use the Advantage feature if you often keep idle funds in savings.
- Negotiate processing fees during festive campaigns or online applications.
- Track your spread—many borrowers forget this affects their actual rate.
Sample EMI Calculation
For a ₹50 lakh loan at 8.25% interest for 20 years:
- EMI ≈ ₹42,700 per month
- Total interest payable ≈ ₹52.5 lakh
- Prepaying ₹5 lakh early can save ~₹6.5 lakh in interest
Final Verdict
Bank of Baroda’s home loan portfolio offers excellent flexibility, competitive interest rates, and borrower-friendly terms. The Advantage overdraft product is especially appealing for individuals with steady income and surplus funds. Whether you’re buying your first home, building on a plot, or transferring an old loan, BoB provides an all-around efficient solution.