Bank Of Baroda Personal Loan Interest Rate 2022

Bank of Baroda offers personal loans up to Rs.10 lakh to consumers in urban and semi-urban areas, with interest rates ranging from 10.50 percent to 12.50 percent per annum and repayment terms of up to 60 months.The processing fee is 2% of the loan amount, with a minimum fee of Rs.1,000 and a maximum fee of Rs.10,000. The loan can be repaid over a period of up to 60 months.

Bank of Baroda has implemented BRLLR (Baroda Repo Linked Lending Rate) for all lending products, including Personal Loans, following RBI requirements. The following are the interest rates for various types of borrowers offered by Bank of Baroda Personal Loans:

Type of Personal Loan	Interest Rate (p.a.)
Bank of Baroda Personal Loan for Salary account holders	Starting at 10.50% p.a.
Bank of Baroda Personal Loan for other account holders
Bank of Baroda Personal Loan for other applicants (no prior BoB relationship)	Starting at 12.10% p.a.

MCLR benchmark	MCLR in (%) with effect from May,7,2019
Overnight MCLR	8.30
1-month MCLR	8.35
3-month MCLR	8.45
6-month MCLR	8.65
1-year MCLR	8.7

Other Fees & Charges by BoB

Category	Rate/Charge
Loan Tenure	12-48 months
Maximum Loan Amount	Up to Rs.10 lakh (for metros and Urban areas) Up to Rs.5 lakh (for rural and Semi-urban areas)
Processing Fees	2% of the loan amount (minimum of Rs 250)
Prepayment Charges	Before 6 months -6% of the principal outstanding After 6 months- NIL
Foreclosure Charges	NIL, but only allowed after payment of 1 EMI
Additional interest on late payment	2% per month

*Rates are subject to periodic change. Personal Loan Interest Rates in Bank of Baroda and other fees/charges are subject to regular reviews and can vary from customer to customer depending upon a number of factors.

Certain other fees/charges levied by the BoB on the borrowers of its personal loans are described below- 

• Processing Fees: The BoB charges a unified processing fee which is inclusive of the processing fee, document verification fee, documentation fee and pre & post-sanction verification fee. The processing fee is fixed at 2% of the personal loan amount or Rs 250, whichever is higher. This fee is kept at Rs 100 only for personal loans offered to pensioners. For BoB personal loans against deposits, a nominal processing fee of 0.35% of the loan amount is levied. Applicable GST will also be added to the processing mentioned above. The processing fee should be paid by the borrower upfront, immediately after the BoB personal loan is sanctioned.

• Legal Opinion & Valuation Charges- The BoB charges a fee for providing legal deeds or legal opinions related to BoB personal loans through an impaneled lawyer of the bank. These fees would be charged on actual in addition to the processing fees.

• Prepayment Charges- The BoB levies a hefty prepayment charge of 6% of the principal outstanding for all prepayments done within the first 6 months. However, no charge is levied on any prepayments done thereafter. 

• Penal Charges- If the EMIs are not paid in time, the BoB levies a late payment fee of 2% every month, on the EMI amount due.

Other Charges- In addition to the charges mentioned above, the Bank of Baroda also levies certain other charges. The applicant needs to bear these charges. These include stamp duty, statutory charges/fees, or document execution charges.

• Highly competitive and best-in-class rate of interest
• Completely transparent loan disbursal procedure 
• The applicant should not be less than 21 years of age at loan application and be more than 60 years at loan maturity.
• BoB ascertains the repayment capacity of applicants by considering his affordable income and credit profile. 
• BoB offers special personal loan schemes for ex-defence personnel and pensioners. It also provides personal loans against Earnest Money Deposits (especially for purchasers of flat/plot/home).
• Convenient repayment options (ECS, PDCs etc).
• The total deductions from the monthly income of an applicant should not exceed 60% of his gross monthly income. If it exceeds, the applicant will be deemed ineligible for the personal loan.
• Flexible repayment tenures.
• BoB personal loan requires minimal documentation. Submission of only a few basic documents is enough from your end.
• 50% of the processing fee would be reimbursed by the bank, if the borrower does not avail the personal loan sanctioned already. 

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 - 

• Age of the Applicant

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 Personal Loan Tenure

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. 

• Your CIBIL Score

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 Monthly Income

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.  

• Your Bargaining Power 

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.