Bank of Baroda Loan Against Property
Last Updated : Nov. 19, 2016, 6:30 a.m.
About Bank of Baroda Loan Against Property
In a monetary crisis, credit cards are sometimes not sufficient and the interests charged on them are also not ignorable. Hence, to fulfill needs where you require huge money, your property is one of the assets that can never let you down. The loan against property is one such provision where you can keep your residential or commercial property with the banks and get an instant loan. Bank of Baroda loan against property is one of a kind that a loan applicant would want. From low-interest rates to higher loan amount, the bank has all the features that you need.
One of those banks is Bank of Baroda that has come up with the combination of a loan and overdraft facility. Any individual/s can avail this beneficiary loan facility and get his/her life on track. The interest rate charged on LAP ranges from 8.20% - 13.35% per annum and the flexible repayment options for the tenure of up to 7 years and the low processing fee of 1%.
In this article, you will get all the information about the Bank of Baroda loan against property scheme.
Bank of Baroda Loan Against Property Details
| Particulars | Details |
|---|---|
| Interest Rate | 8.20% - 13.35% |
| Loan Amount | Minimum: ₹1 lakh Maximum Rural areas: ₹10 Lakhs Other areas: ₹3 Crores |
| Tenure | Up to 7 years |
| Processing Fee | For Loan: 1% of the loan amount with a minimum of ₹7,500/- |
How to Apply
If you want to take a loan against your residential or commercial property from Bank of Baroda, you need to follow these 3 steps to save your time and smoother loan:
1. Fill up the loan application form and paste photos
2. Attach all the KYC documents & property documents as mentioned by the bank
3. Submit the above documents to the nearest bank branch
Loan Against Property EMI Calculator
What comes to your mind when you hear the word loan? Of course, the rate of the interest rate is the first thing, but other than this, monthly EMI is the information we want for sure. For the convenience of the applicants, online EMI calculator has been made through which you can check the EMIs for each and every month in just 3 steps:
1. Loan Amount
2. Tenure
3. Interest Rate
By mentioning the above details in the calculator, you will know the monthly installments for the chosen information.
Here is an example for the loan of ₹15,00,000 at 10.35% p.a rate of interest for the tenure of 7 years.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 1,54,006 | ₹ 1,48,080 | ₹ 13,45,993 |
| 2 | ₹ 1,70,724 | ₹ 1,31,362 | ₹ 11,75,269 |
| 3 | ₹ 1,89,257 | ₹ 1,12,830 | ₹ 9,86,012 |
| 4 | ₹ 2,09,801 | ₹ 92,285 | ₹ 7,76,210 |
| 5 | ₹ 2,32,576 | ₹ 69,510 | ₹ 5,43,634 |
| 6 | ₹ 2,57,823 | ₹ 44,263 | ₹ 2,85,810 |
| 7 | ₹ 2,86,026 | ₹ 16,276 | ₹ 0 |
Bank of Baroda Loan Application Form
While applying for the mortgage loan from Bank of Baroda, some of the mandatory details that you need to fill are as follows:
- Name of the applicant
- Date of Birth
- Maximum Loan Amount
- Income Proof
- Permanent Residence Address
- Office Address (for self-employed)
- Purpose of the loan
- Property Details
Eligibility Criteria for LAP
For all kinds of loan, an individual or individuals must fulfill the loan eligibility criteria for the selected kind of loan:
- Salaried employees/Professionals
- Self-employed & Income Tax assesses for last 3 years a minimum gross annual income of ₹60,000/-
- Minimum age of the applicant is 21 years
- For Salaried Class: 36 months of gross monthly income
- For Others: 5 times of average (last 3 years) annual income
Documents Required For Bank of Baroda
The list of documents that you must have at the time of loan application are as follows:
For Salaried Class
- Loan Application Form
- Identity Proof such as Voter ID Card, PAN Card, Aadhaar Card, Office ID, etc.
- Address Proof such as Voter ID Card, Aadhaar Card, Electricity Bill, Telephone Bill, etc.
- Income Proof (Form 16 along with salary certificate from the employer)
For Professionals/Self-employed
- Loan Application Form
- Identity Proof such as Voter ID Card, PAN Card, Aadhaar Card, Office ID, etc.
- Address Proof such as Voter ID Card, Aadhaar Card, Electricity Bill, Telephone Bill, etc.
- I.T. returns for past 3 years
- Latest income tax assessment order (for overdraft amount of over ₹5 Lacs)
- Income certificate from appropriate revenue authority like Tehsildar/BDO/SDO (for agriculturist)
- Original title deeds of the property offered for mortgage
- Paid receipt of latest maintenance, water tax, municipal tax, and any such taxes
- Non-encumbrance letter from co-op society
- Permission to create Equitable Mortgage from society
- Last 6 months bank statements of main bank account
Bank of Baroda Loan Interest Rates
The rate of interest applicable on Bank of Baroda LAP range from 9.90% (1 Year MCLR + Strategy Premium + 1.75%) to 13.50% (1 Year MCLR + Strategic Premium + 3.50%) per annum.
LAP Processing Fees
The processing fee that the bank charges on the loan against residential or commercial property is 1% of the loan amount with a maximum of ₹ 1,50,000/- and a minimum of ₹7,500/-.
For Overdraft loan, the bank charges the processing fee of 0.35% of limit with a maximum of ₹75,000/- (Up to ₹3 Crores) and 0.25% of the limit with a minimum of ₹7,500/- without any maximum (Above ₹3 Crores).
Features & Benefits
Here are some of the main features of the Bank of Baroda loan against property scheme:
- Combination of a loan and overdraft facility
- Flexible repayment options
- Tenure up to 7 years
- Deposit surplus money/regular income/salary and save interest rates
- Flexibility to withdraw money deposited earlier
- Can be availed either as overdraft or demand loan as per your need
- Loan amount up to ₹3 Crores
- Maximum tenure of 84 EMIs
- Easy documentation
- Quick Loan Approval