About Bank of Baroda Personal Loan
Bank of Baroda offers two types of personal loans to customers, each designed to meet any financial obligation an individual could have. These loans can be availed for any purpose and are available at extremely competitive interest rates, ensuring monetary needs don’t hamper the quality of life of a customer.
Bank of Baroda Personal Loan Eligibility
Applicants can choose from two types of personal loans offered by Bank of Baroda, the Baroda Personal Loan and the Baroda Premium Personal Loan.The eligibility criteria for both these Bank of Baroda Personal loans are mentioned below.
Baroda Personal Loan
For Salaried Individuals
- Permanent employee – The applicant should be a permanent employee of either any Government undertaking or a reputed company.
- Work Experience – The applicant should have a minimum work experience of 1 year.
For Self Employed Professionals
- Work experience- The applicant should have a minimum work experience of 1 year.
- Stable profession – The applicant should have a stable profession with a regular source of income.
For Insurance Agents
- Work experience – The applicant should have worked as an insurance agent for at least 5 years.
- Regular income – The agent should have a regular source of income.
- Bank account – The agent should have a SB account with the bank.
Baroda Premium Personal Loan
For Salaried Individuals
- Permanent employee – The applicant should be a permanent employee of any government undertaking, school, college or a reputed MNC.
- Work experience – The applicant should have a minimum work experience of 1 year.
- No overdraft account – Employees with an overdraft account or salary linked loan with any bank are not eligible for this Personal Loan.
- Minimum age – Applicants should be at least 21 years old.
- Maximum age – The age of the applicant should be such that the entire loan amount is cleared before he/she reaches the retirement age.
- Minimum monthly income – Applicants should have a minimum net monthly income of Rs. 10,000 for check off loan and Rs. 15,000 for partial check off loan.
- Relationship with bank – Applicants should have a good relationship with the bank for at least 6 months.
For Self Employed Individuals
- Self-employed individuals and employees of private or partnership firms are not eligible for this loan.
Factors affecting Bank of Baroda Personal Loan Eligibility
There are multiple factors which can affect the eligibility of an applicant when it comes to obtaining a Bank of Baroda personal loan, some of which are mentioned below.
- Age – The age of an applicant plays a major role in personal loan applications, with banks preferring individuals in the “middle age” bracket. Youngsters are viewed as a risk, owing to their care free attitude. Being on the wrong side of the age scale can also hamper eligibility as people close to their retirement age might be considered risky prospects when it comes to repaying loans.
- Income – The income of an applicant determines his/her repayment capacity, with low income individuals finding it harder to obtain high loan amounts. The income often dictates how much loan an individual can avail.
- Type of employment– Permanent employees are considered more eligible for personal loans compared to temporary or probationary employees. This is because there is no guaranteed job security for temporary employees, which may question their repayment capacity.
- Type of company– New companies emerge and shut down on a daily basis, which make banks cautious about the employer details of a loan applicant. Employees from stable companies and government organizations are likely to get their loan approved quicker than employees from start-ups or unknown organizations.
How CIBIL score affects your Bank of Baroda Personal Loan Eligibility
Banks rely on the CIBIL score of an individual to gauge his/her financial history, with the score often determining whether an applicant gets the loan approved or rejected. A CIBIL score is considered as a financial reflection of the individual, often being the sole criteria banks depend on. A good CIBIL score indicates a stable financial past, improving the chances of an applicant getting a loan approved by Bank of Baroda. Scores hovering around the average marks might be considered by the bank but might not necessarily be approved.
A low CIBIL score casts doubts on the applicant’s financial credibility and Bank of Baroda is unlikely to even consider their loan application, as such individuals are considered risky. A good CIBIL score instils confidence in the applicant, giving him/her preference over others. It also allows an applicant to request for higher amounts and negotiate the repayment term and interest rate.
How to increase Bank of Baroda Personal Loan Eligibility
Implementing these few simple steps can help increase your eligibility for a Bank of Baroda personal loan.
- Timely payment – Paying all EMIs and credit card bills on time will help improve your CIBIL score, helping you improve your eligibility.
- Choosing longer tenure – A longer tenure means lower monthly EMIs, which could fall within the income requirements expected by the bank.
- Prepayment – Prepaying existing loans is likely to highlight the commitment of an applicant towards clearing a loan, improving his/her eligibility to obtain a personal loan.
- Limiting the applications – A large number of loan applications reflects poorly on the applicant, making him/her look desperate for loans. Keeping the applications to a minimum could help maintain the credibility.
- Limiting the loan amount – Asking for loan amounts higher than needed might trigger alarm bells in the bank. It is wiser to request for amounts which are necessary, as higher loan amounts might be rejected by the bank.
FAQs on Bank of Baroda Personal Loan Eligibility
Q. What is the maximum loan amount one can avail through Bank of Baroda?
A. The maximum loan amount available under the Baroda Personal Loan plan is Rs. 2 lakh.
Applicants can avail a maximum of Rs. 10 lakh under the Premium Personal Loan plan.
Q. Does Bank of Baroda offer personal loans to defence personnel?
A. Yes, Bank of Baroda offers personal loans to defence personnel as well.
Q. What are check-off personal loans?
A. Check-off refers to the process wherein loan instalments are deducted from the salary of a borrower and remitted to the bank. Loans availed under this scheme are called check-off loans.