Bank of Baroda Personal Loan
Bank of Baroda was founded by the then Maharaja of State of Baroda Maharaja Sayajirao Gaikwad on 20th July 1908. The bank became part of government undertaking on 19th July 1969 with the nationalization of commercial banks. Bank of Baroda, in addition to being active in domestic front, is equally having broad-based operations internationally as well. The bank very is active in retail lending especially in personal loans and home loans.
Who is eligible to get personal loans from Bank of Baroda
All the government employees, employees of public sector undertaking, public limited companies with a minimum of one year experience are eligible to apply for the personal loan from Bank of Baroda. Even people who are working in an unorganized sector like proprietorship, partnership firms or private limited Companies are also eligible to get a personal loan from Bank of Baroda provided one has completed at least one year of service.
Even self-employed people whether professionally qualified or those engaged in business are also eligible to apply for the Bank of Baroda personal loan if they can prove steady income and operation for minimum one year. It is only for the insurance agents for whom a minimum period of two years in business is insisted upon by Bank of Baroda for considering eligible for personal loans.
For applying for the personal loan from Bank of Baroda, you need to be minimum of 21 years of age. As far as the maximum age of the applicant at the time of making the loan application is concerned for self-employed the upper age limit is taken as 65 years but for salaried the upper age limit is considered as 60 years beyond which one is not eligible to apply for the personal loan.
Bank of Baroda Personal Loan Eligibility
The maximum amount of personal loan for which you are eligible would depend on your monthly income. For salaried having banking relations with the bank, the personal loan available would be restricted to 12 times of your monthly income. However, for self-employed and salaried not having banking relations with it, the Bank of Baroda give 6 times of your gross monthly income as a personal loan if your gross monthly income is less 75,000/-.
For people having higher monthly income than 75,000/-, the bank considers 8 times as eligibility for a personal loan. Even the repayment period available for the first category of a borrower is 60 months but for the other category, the maximum tenure available for repayment is 48 months.
Documents Required for Bank of Baroda personal loan
For making an application for a personal loan, you need to submit the basic Know Your Customer (KYC) documents like copy of Aadhaar Card, Pan card, Ration Card, Bank Statement, Passport copy, Voter Id etc. In addition to these basic KYC documents you also need to establish consistency of your income.
For salaried, this can be done with the help of salary slips of past three months and a copy of Form No. 16 of last one year. The self-employed will have to furnish copies of ITR filed as well as profits and loss account with the balance sheet for past years.
Special features of Bank of Baroda Personal loans
Bank of Baroda does not allow any person to joint as co-borrower for the purpose of a personal loan which is allowable in the case of a home loan. So you can not enhance your personal loan eligibility by making eligible relative to join you as co-applicant. However, the eligible co-applicant can always apply for the personal loan in his/her name individually based on his/her income and supplement the need of the main applicant.
The Bank of Baroda determines the maximum personal loan amount available based on whether the branch is in Metro/urban area or in the semi-urban or rural area. For Metro and urban branch, the maximum amount of personal loan available from Bank of Baroda is 10 lakhs which get reduced to 5 lakhs in case the branch is located in the semi-urban or rural area. Likewise, the minimum amount of personal loan available for metro/urban area is 1 Lakhs but for the rural or semi-urban area this gets restricted to Rs. 50,000/- only.
The personal loan from Bank of Baroda is available for any legitimate purpose, be it your holiday plan or furnishing of your new house or supplementing your business finances. However, the personal loan taken from Bank of Baroda cannot be used for the purpose of any sort of speculation whether in the stock market or in commodity markets.
Bank of Baroda Personal Loan Interest Rates
The lending rate of the personal loan of Bank of Baroda is linked with the yearly Marginal Cost of Funds based Lending Rates (MCLR). The applicant having a relationship with Bank of Baroda for a minimum period of six months get a better rate of interest than those who do not have an existing relationship with it. Existing customer of Bank of Baroda gets a discount of 2% over the rate of interest charged to other borrowers for the personal loan.
The personal loan rate of interest is one year for existing account holder is MCLR +3% to 6% for existing customers. For non Bank of Baroda Customers, the rates are higher by 2%. The actual rate charged by the bank on your personal loan would depend on whether you are salaried or self-employed. Your credit history and credit score will also impact the rate of interest on which you will get a personal loan from Bank of Baroda.
In addition to the regular interest rate, you have to pay a processing fee of 2% of the loan applied subject however that the processing fee shall minimum be Rs. 1,000/- and the maximum processing fee the bank will charge you for processing your personal loan application shall be restricted to Rs. 10,000/-. The cheque of processing fee has to be paid with the application form. For any delay in payment of your EMI, you have to pay a penal interest of 2% per month for the period of delay of overdue EMI.