Different factors come into consideration when the Bank of Baroda calculates its personal loan interest rates for deserving individuals. Here are some of the factors -
If you are closer to your retirement age, the perceived risk for the bank is that much more. In this scenario, the BoB will hesitate to consider your loan application. Because of this risk attached, the rate of interest offered to you will be on the higher side.
The loan tenure or the loan repayment period of the Bank of Baroda personal loan has a say on the interest rates prescribed by the bank. The interest rate is higher for shorter loan tenures and vice versa.
While considering your personal loan application, the Bank of Baroda has a thorough check on your credit profile. Your credit profile includes details from where the Bank determines how efficient you are in handling your credit. The BoB also takes stock of your previous repayments (loan EMIs, credit card bills etc) as well. If you failed to repay your previous dues on time on a couple of occasions and your CIBIL score is below 700, the Bank will set the interest rate on the higher side.
On the other hand, if the above-mentioned criteria are found satisfactory, the BoB may offer you the best interest rates applicable.
If you are a BoB Customer
If you have been a customer of the Bank of Baroda for at least 6 months and you have maintained a good track record, you are eligible for special offers with cheaper interest rates. You will be offered a BoB Premium Personal loan which is available with or without a check-off. This means you can have the option where you can ask your employer to remit a part of your salary directly to the Bank as your EMI amount.
However, do have in mind that interest rate and other offers are matters of sole discretion of the Bank. By becoming a customer, you do not necessarily ‘earn' the right to get all the offers presented by the Bank.
Your affordable monthly income has a major impact while the BoB decides on the interest rate to offer to you. Your monthly income enables the Bank to ascertain your repayment capacity.
If you have a high income, the BoB is somewhat convinced that the amount wanted by you would return to the bank inside the loan tenure itself. On the other hand, if you have a low income, you will not be in good shape to pay your EMIs on time. In such a scenario, the BoB will see you as a risky proposition in terms of your loan repayment. Hence, it will hamper your chances of getting the cheapest interest rates from the Bank.
Let’s not mince words! It’s very much like buying any product from the market. Yes, you can bargain too, while applying for a personal loan. If you have the right credentials, (possess an impressive credit profile/monthly income) it will certainly make your task easier.
If you have a good credit score and fulfil all the loan eligibility criteria to the satisfaction of the BoB, it will value you as a ‘prized possession’. The Bank would not like to lose out a credible customer like you to its competitors and would certainly wish to form a long-term association with you. This way, you will stand a great chance to avail the best rates from the Bank.
If you are an existing employee of an organization of repute, it may help your cause as well. Such employees are considered financially stable enough to make timely repayments. Hence, in such a case, you are in a better position to negotiate and obtain the best interest rates from the BoB.