Bank Of Baroda Personal Loan Interest Rate & Charges

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Bank Of Baroda Personal Loan Interest Rate 2021
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Description

• The Bank of Baroda (BoB) is a public sector
  financial services and banking company owned by
  the Government of India. In October 2017, it
  reported a total asset of over Rs 3.58 trillion,
  thereby becoming the 2nd biggest bank in India by
  assets. 
• On 17th September 2018, the Indian Govt announced
  the merger of Vijaya Bank, Bank of Baroda and
  Dena Bank, which was the first-ever 3-way
  consolidation of public sector banks in India.
  With a combined business of Rs 14.82 lakh crore,
  it became the 3rd largest Bank after SBI and
  HDFC. 
• The BoB provides fast and transparent personal
  loans designed to suit the unique needs of
  diverse customer segments. It offers suitable
  personal loan products to individuals in urgent
  need of funds to address their immediate
  financial issues. Bank of Baroda personal
  loans come with highly competitive interest rates
  and are offered to both the salaried
  self-employed segments of borrowers.

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Bank of Baroda personal loan rates and charges

• The Bank of Baroda personal loan interest rates
  starts from 10.50 per annum. If the BoB personal
  loans are issued with floating interest rates,
  the rates are linked to the prevailing MCLR
  (marginal cost of funds based lending rate). This
  is the lowest rate at which the BoB can disburse
  loans. It cannot offer a rate below the existing
  MCLR. The MCLR is influenced by the changing
  market rates. In case there is a sudden hike in
  the market rate, the MCLR shoots up. As a result,
  the prevailing interest rates on all loans issued
  by a bank also get increased. However, if there
  is a dip in the market rate, the MCLR goes down
  inevitably. Even if the MCLR falls off, the BoB
  cannot reduce its personal loan rates below the
  base rate permissible.  The BoB MCLR with effect
  from May 2019 are given below- 

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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
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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 
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Important features of a Bank of Baroda personal
loan

• 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. 

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Determinants of a BOB personal loan interest rate

• 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.

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• 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. 

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• Your bargaining power 
• Lets not mince words! Its 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.

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THANK YOU