Bank of Baroda (BOB) is a prominent home loan lender in India. The BOB home loan has some special features as compared to other home loan products. Let us discuss these distinct features.
BOB Home Loan Rates on Credit Score
Banks and housing companies decide whether you give you a home loan or not, primarily, on the basis of your credit score and credit history. A good credit score speaks volume about your creditworthiness. However while providing home loan no lender used to give any concession to the borrowers with better credit score. BOB home loan is the first product in the country where the people with better credit score are able to get home loans at relatively cheaper interest rates. The bank of Baroda gives home loan at the MCLR rate, minimum rate below which no lender can lend money, to the home loan borrowers who have credit score of 760 and above.
Benefits Attached with BOB Home Loan
The BOB home loan entitles the first named borrower for a free credit card for the first year who have availed the BOB home loan for two lakhs rupees or more. Moreover the BOB home loan borrower are granted the motor car loan with a concession of 0.25% in the interest applicable for the category. In addition to the above benefits, your home loan from bank of Baroda comes with a free accident insurance without any additional costs.
Higher eligibility through addition of relatives as co applicants who are not even co owners and longer tenure
As your home loan eligibility is determined on the basis of your income, you can add some of your relatives as co borrowers to enhance the home loan eligibility of higher amount. The co borrower even need not be a joint owners of the property. Generally home loan lenders allow your spouse, children, siblings and parents to be added as co applicant for home loan but the Bank Of Baroda lets us add more relatives as co borrower for the same purpose.
The list of close relatives for BOB home loan includes your not so close relatives like Son’s wife, Daughter’s husband, Brother’s wife, sister of spouse, Sister’s husband, Brother of spouse. Even if you do not have any of the above close relatives the bank allows you to add any one who is not a close relative provided he /she is joint owner of property. So with wider list of people eligible to be added as joint applicant, your are assured of higher home loan eligibility when you apply for BOB home loan. Home loans generally come with a tenure of 20 years but with a longer tenure up to 30 yeas available the BOB home loans ensure you higher amount of home loan eligibility.
BOB Home Loan Interest Rates
Interest on the loan is charged on a daily reducing balance at monthly rests on floating rates. Presently the rate of interest (ROI) for BOB Home Loan is (One year MCLR to One year MCLR +1.00%) depending upon the amount of the loan. Presently the rate of interest is 8.10%.
Purposes for which BOB home loan can be availed
In addition to regular purposes like purchase, construction, repair and renovation of new and old house, the BOB home loan is available for purchase of a plot of land for construction of the house also. Even you can avail home loan in the form of reimbursement of purchase of a residential plot, within 24 months of purchase for construction of a house. The home loans are available to resident as well as non resident individuals with either Indian passport. Even non Indian citizens person of Indian origin can also avail home loan from bank of Baroda. However the home loans from Bank of Baroda are not available to an Hindu Undivided Family (HUF).
The income multiplier for your home loan
While determining your home loan eligibility, Bank of Baroda multiplies your gross monthly income GMI) to certain factor. For GMI upto fifty thousands rupees salaried people are eligible for 48 times of GMI as home loan. With higher income the multiplier also goes up. For GMI between fifty thousands and one lakhs , your eligibility goes up to 54 times and then to 60 times of the GMI if it is more than one lakhs.
Likewise for self employed upto 2 lakhs of annual income the home loan eligibility is 4 times and goes to 6 times for higher than 2 lakhs of annual income.
Now from the above discussion it becomes evident that BOB home loan has better features than other home loans.