Bank of Baroda offers personal loans for customers residing in urban and semi-urban areas up to Rs.10 lakh at attractive interest rates between 11.70% - 16.70% p.a. with flexible repayment tenures up to 60 months. The processing fee charged on the loan amount is 2%, subject to a minimum of Rs.1,000 and a maximum of Rs.10,000. The loan repayment period can be extended up to 60 months.
| Particulars | Salaried/Self-employed |
| Interest Rate | 11.70% - 16.70% p.a. |
| Processing Fee | 2% of the loan amount (Minimum of Rs.1,000 and maximum of Rs.10,000) |
| Loan Tenure | Maximum of 48-60 Months |
| Loan Amount |
|
| Age criteria |
|
| Employment Status | Salaried, self-employed, insurance agents, etc. |
| Credit Score | 750 |
| Lowest EMI per Lakh | Rs.1,102 |
| Pre-Payment/Foreclosure Charges | As per the terms and conditions set by Bank of Baroda |
| Overdue EMI Interest | 2% of the due amount |
Bank of Baroda Personal Loan scheme details
| Particulars | Interest Rate | Processing Fee | Loan Tenure | Loan Amount | Salary / Income |
| Salaried | 11.70%- 16.70% p.a. | 2% of the loan amount (Minimum of Rs.1,000 and maximum of Rs.10,000) | Maximum of 48-60 months |
|
As per the terms and conditions set by Bank of Baroda |
| Self-Employed | 11.70%- 16.70% p.a. | 2% of the loan amount (Minimum of Rs.1,000 and maximum of Rs.10,000) | Maximum of 48-60 months |
|
As per the terms and conditions set by Bank of Baroda |
Factors affecting Bank of Baroda personal loan interest rates
- Age of the applicant: If the applicant is towards his/her retirement age, the interest rate is usually set higher as the risk involved is more.
- CIBIL score: The repayment track record of the applicant is taken into consideration. If the applicant has a low CIBIL score (anything below 750) and has failed to repay his/her past loans or credit card bills in time, the interest rate will be set higher.
- Loan Tenure: As in most cases, the repayment tenure chosen by the applicant has an effect on the interest rate. The longer the tenure, the higher the interest rate.
- Resident location: The interest rate decided by Bank of Baroda could also be based on whether the applicant resides in an urban or semi-urban area.
Illustration:
1. For individuals with a salary of Rs.25,000
Let’s assume that Mr. Ram has secured his first job and wishes for a personal loan of Rs.50,000 to meet personal commitments. Since Mr. Ram has a poor CIBIL score as he/she has not had any prior loans and is yet to own a credit card, Bank of Baroda sets the highest interest rate of 16.70% p.a. on the loan amount of Rs.50,000. Mr. Ram has chosen a tenure of 12 months to repay the loan, and Bank of Baroda has charged a processing fee of 2% on the loan amount.
To repay the personal loan on time, Mr. Ram has to pay an EMI of Rs.4,554 and in doing so, he is giving himself the chance to improve his CIBIL score.
| Year | Principal Paid(A) | Interest Paid(B) | Total Payment (A+B) | Outstanding Loan Balance |
| 1 | Rs. 3,857 | Rs. 696 | Rs. 4,553 | Rs. 46,143 |
| 2 | Rs. 3,911 | Rs. 642 | Rs. 4,553 | Rs. 42,232 |
| 3 | Rs. 3,965 | Rs. 588 | Rs. 4,553 | Rs. 38,266 |
| 4 | Rs. 4,021 | Rs. 533 | Rs. 4,554 | Rs. 34,246 |
| 5 | Rs. 4,077 | Rs. 477 | Rs. 4,554 | Rs. 30,169 |
| 6 | Rs. 4,133 | Rs. 420 | Rs. 4,553 | Rs. 26,036 |
| 7 | Rs. 4,191 | Rs. 362 | Rs. 4,553 | Rs. 21,845 |
| 8 | Rs. 4,249 | Rs. 304 | Rs. 4,553 | Rs. 17,596 |
| 9 | Rs. 4,308 | Rs. 245 | Rs. 4,553 | Rs. 13,288 |
| 10 | Rs. 4,368 | Rs. 185 | Rs. 4,553 | Rs. 8,920 |
| 11 | Rs. 4,429 | Rs. 124 | Rs. 4,553 | Rs. 4,491 |
| 12 | Rs. 4,491 | Rs. 62 | Rs. 4,553 | Rs. 0 |
2. For individuals with a salary of Rs.65,000
Let’s assume that Mr. Paul is a middle-aged man with a monthly salary of Rs.65,000 and has a brilliant credit score as he has never missed a loan payment in the past. Mr. Paul wishes to avail a loan amount of Rs.3.5 lakh for a tenure of 1 year and Bank of Baroda offers him the lowest possible interest rate of 11.70%. Mr. Paul is charged a processing fee of 2% on the loan amount of Rs.3.5 lakh. To repay the loan on time and keep his credit score optimum, Mr. Paul will have to pay an EMI of Rs.31,031.
| Year | Principal Paid(A) | Interest Paid(B) | Total Payment (A+B) | Outstanding Loan Balance |
| 1 | Rs. 27,648 | Rs. 3,383 | Rs. 31,031 | Rs. 3,22,352 |
| 2 | Rs. 27,916 | Rs. 3,116 | Rs. 31,032 | Rs. 2,94,436 |
| 3 | Rs. 28,185 | Rs. 2,846 | Rs. 31,031 | Rs. 2,66,251 |
| 4 | Rs. 28,458 | Rs. 2,574 | Rs. 31,032 | Rs. 2,37,793 |
| 5 | Rs. 28,733 | Rs. 2,299 | Rs. 31,032 | Rs. 2,09,060 |
| 6 | Rs. 29,011 | Rs. 2,021 | Rs. 31,032 | Rs. 1,80,049 |
| 7 | Rs. 29,291 | Rs. 1,740 | Rs. 31,031 | Rs. 1,50,758 |
| 8 | Rs. 29,574 | Rs. 1,457 | Rs. 31,031 | Rs. 1,21,184 |
| 9 | Rs. 29,860 | Rs. 1,171 | Rs. 31,031 | Rs. 91,324 |
| 10 | Rs. 30,149 | Rs. 883 | Rs. 31,032 | Rs. 61,175 |
| 11 | Rs. 30,440 | Rs. 591 | Rs. 31,031 | Rs. 30,735 |
| 12 | Rs. 30,735 | Rs. 297 | Rs. 31,032 | Rs. 0 |
FAQs
- What is the minimum repayment tenure I can choose to pay back my personal loan?
- Do I need a guarantor to avail a personal loan from Bank of Baroda?
- Is it possible to add my spouse as a co-applicant? Does Bank of Baroda allow co-applicants?
- Does Bank of Baroda allow personal loan pre-payments?
- If I have an optimum credit score, can I assume that I will be offered the lowest rate possible?
The minimum repayment tenure is 12 months. The maximum if between 48 months to 60 months.
No, you will not need a guarantor to avail a personal loan from Bank of Baroda.
No, Bank of Baroda does not allow co-applicants.
Yes, Bank of Baroda allows pre-payments subject to their terms and conditions. Foreclosure charges will be applicable.
Your credit score is just one of the factors that decide the interest rate. Bank of Baroda takes into consideration numerous factors when deciding the interest rate.
