Individuals can take out Bank of Baroda personal loan to cover a variety of expenses such as Home Renovations, weddings, vacations, higher education, medical emergencies, and the purchase of consumer durables such as washing machines, televisions, and refrigerators. A personal loan from the Bank of Baroda can be taken out for amounts up to Rs. 10 lakhs, and it is available to both salaried and self-employed individuals.
Bank of Baroda Personal Loan Features
- Loan amount: You can get a Bank of Baroda personal loan of up to Rs. 10 lakhs to meet different personal financial needs. The amount of a loan given to a person, however, is determined by where he lives (rural or urban area). People who live in cities and metros can apply for a loan ranging from Rs. 1 lakh to Rs. 10 lakhs. The loan amount for rural and semi-urban areas will range from Rs. 50,000 to Rs. 5 lakhs.
- A tenure that can be changed: Your Bank of Baroda personal loan comes with a flexible repayment period of up to 60 months.
- Processing via the internet: You may Apply for a Bank of Baroda Personal Loan Online from the convenience of your own home or office, saving time and effort.
- Fast disbursement: Once your loan has been accepted, the funds are transferred to your account within a few days.
Personal Loan Interest Rates at Bank of Baroda
Bank of Baroda has implemented BRLLR (Baroda Repo Linked Lending Rate) for all lending items, including personal loans, following RBI guidelines. The following are the interest rates for various types of borrowers offered by BOB 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. |
Criteria for Eligibility
The following eligibility conditions must be met to obtain a personal loan from the Bank of Baroda:
- If the Personal Loan sum is up to Rs. 2 lakhs, you must have had a banking partnership with BOB or another bank for at least 6 months.
- Repayment Capacity (Fixed Obligation to Income Ratio) – For those with a GMI of less than Rs. 75,000, the maximum GMI is 40%. FOIR equal to 50% of GMI is allowed for GMIs of $75,000 and up but less than Rs.2 lakh.
- If the GMI is more than Rs. 2 lakhs, a FOIR of 60% of the GMI is permitted.
An Applicant Who is Salaried:
- Between the ages of 21 and 60
- A minimum of one year of continuous service is required.
- Fixed Obligation to Income Ratio (FOIR) – Employees of the Central/State Government, Autonomous Bodies, Public/Joint Sector Undertakings & Educational Institutions with a minimum of one year of continuous service and a salary account with the Bank are eligible to pay up to 60% of their gross monthly income (GMI) towards FOIR. The following are the FOIR conditions for other salaried applicants:
- If your GMI is less than Rs. 75,000, you’ll get a 40% discount.
- If your GMI is between Rs. 75,000 and Rs. 2,00,000, you will receive 50% of your GMI.
- 60% of GMI consists of: If GMI is more than Rs. 2,00,000,
For Government Employees and Salaried Applicants
- Employed in the public/joint sector, independent bodies, and other organizations with a BOB salary account, the previous month’s salary must have been credited to the account.
- Other salaried applicants with a Bank of Baroda salary account who are applying for a Bank of Baroda personal loan of more than Rs. 2 lakhs must have maintained their salary account for the previous 6 months.
An Applicant Who is Self-Employed:
- Between the ages of 21 and 65
- Minimum of one year in business/two years in the case of insurance brokers.
- For those seeking a personal loan of more than Rs. 2 lakhs from the Bank of Baroda, a six-month prior relationship with the bank is needed.
- Agent commissions for at least the previous 6 months must have been credited to a Bank of Baroda account in the case of an insurance agent applicant.
Documents Required to Apply for a Loan
The following are some of the most common documents needed to apply for a Bank of Baroda personal loan:
- A copy of your passport, voter ID, Aadhaar card, driving license, or other photo identification is required (Anyone)
- A copy of your electric bill, ration card, or passport would suffice as proof of address.
- Pay stubs for the previous three months
- Proof of income: The most recent three months’ bank statement from your salary account
- Certificate of Employment: Two passport-size photos and a certificate confirming one year of continuous employment
Documents Required for Salaried Persons:
- Pay stubs for the previous three months
- Last 3 month’s salary account bank statement
- Certificate of employment claiming one year of continuous employment
Documents Required for Self-Employed Persons:
- For the past two years, I’ve been a certified P&L.
- Income Tax Returns that have been acknowledged for at least the last two years
- Proof of company registration and at least one year of business continuity
Conclusion:
To conclude, BOB personal loan can be a good choice if you need extra funds. As it comes with various benefits such as low-interest rates, flexible repayment tenure, minimum documentation, and others.
