|Bank of Baroda (BOB) Personal Loan Interest Rates 2018|
|Interest rate||For BOB customers having account at bank for 6 months: Minimum: 1 year MCLR + Strategic Premium + 3.00% Maximum: 1 year MCLR + SP + 6.00%. For others: Minimum: 1 year MCLR + Strategic Premium + 5.00% Maximum: 1 year MCLR + SP + 8.00%. *Current 1 year MCLR = 8.35%||For BOB customers having account at bank for 6 months: Minimum: 1 year MCLR + Strategic Premium + 3.00% Maximum: 1 year MCLR + SP + 6.00%. For Others: Minimum: 1 year MCLR + Strategic Premium + 5.00% Maximum: 1 year MCLR + SP + 8.00%. For Doctors: Up to Rs 2 lakh: 1 year MCLR + Strategic Premium + 3.00% Above Rs.2 lakh: 1 year MCLR + Strategic Premium + 2.50% *Current 1 year MCLR = 8.35%|
|Loan Amount||Metro & Urban: Minimum: Rs.1 lakh. Maximum: Rs.10 lakh. Semi-Urban & Rural: Minimum: Rs.50,000. Maximum: Rs.5 lakh.||Metro & Urban: Minimum: Rs.1 lakh. Maximum: Rs.10 lakh. Semi-Urban & Rural: Minimum: Rs.50,000. Maximum: Rs.5 lakh.|
|Loan Tenure||Maximum: 48 months||Maximum: 48 months|
|Processing Fee||2% of the loan amount + applicable GST. Minimum: Rs.1,000 Maximum: Rs.10,000||2% of the loan amount + applicable GST. Minimum: Rs.1,000 Maximum: Rs.10,000|
|Age||Minimum: 21 years. Maximum: Age of Borrower + repayment period should not exceed retirement age or 60 years, whichever is lower.||Minimum: 21 years. Maximum: Age of Borrower + repayment period should not exceed 65 years.|
|Prepayment/Foreclosure Charges||Within 6 months: 4% on the outstanding loan amount. After 6 months: No charge.||Within 6 months: 4% on the outstanding loan amount. After 6 months: No charge.|
Bank of Baroda Bank offers Personal Loan to meet the wedding expenses, to take a vacation, to meet medical expenses or for meeting any other personal requirements. Bank of Baroda lets you take a personal loan to meet any kind of expenses at a short notice. The bank provides personal loan for pensioners and defence pensioners. It is also available for Earnest Money Deposits for those who wish to buy a house or a flat or a plot.
Bank of Baroda personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Bank of Baroda personal loan interest rate for the year 2015 varies from 13.15 percent to 14.4 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.
EMI or Equated Monthly Instalment is the amount that the borrower has to pay every month to the bank until the loan amount is fully paid off. The EMI amount consists of interest as well as the principal amount to be repaid. The principal amount and interest is divided by the tenure in which the loan has to be repaid. The formula to calculate the EMI is:
EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
To make the EMI calculation easy, you can make use of the EMI calculator available on BankBazaar.com. On filling up the required fields on the EMI calculator you will get the result and the amortization table that will contain details of the EMI amount that goes towards the principal amount payment and how much of it covers the interest amount.
For example, Mr. Suraj has taken a personal loan for Rs.1 lakh from Bank of Baroda. The interest rate he is being offered is 13.15 percent for a tenure of 3 years. By the end of the third year, he would have paid Rs.21,558 towards total interest and his loan EMI is Rs.3,377. He will be paying 17.7 percent towards the interest and 82.3 percent towards the principal loan amount. His amortization table will look as follows:
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
Bank of Baroda personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:
Shorter term loans may attract a higher rate of interest when compared to loans with a longer tenure.
Bank of Baroda checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank looks into the borrower’s income, his assets and his creditworthiness before finalising on an interest rate. The bank checks the applicant’s CIBIL report as it gives detailed information about his repayment capacity. It also holds all the details of the previous loans he had taken and repaid and it also gives information on how he is paying off his credit card bills.
The borrower’s age also plays a crucial role in deciding the interest rate. As the young applicant’s will not be so stable at their job and would be shifting jobs till they find one that works best for them. Bank of Baroda offers personal loan to permanent confirmed employees, self-employed professionals, insurance agents, pensioners, defence pensioners and Earnest Money Deposit.
Bank of Baroda offers special offers, interest rates and charges to those who have been having a long term relationship with the bank. You may even get a discount on the processing charges or the bank might reduce your interest rate if you have managed to show commitment to making payments on time in the past.
The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.
CIBIL Score plays a major role in deciding an applicant’s interest rate. CIBIL report consists of your repayment history and shows how efficiently you have made the payments and if you have missed making any payments on your loans or credit cards. The banks usually accept application of individuals having an ideal score of 750 and above. Those with a lower score will be termed as risky and the bank might offer you a personal loan at a higher interest rate. Check your credit score before applying for a loan so if the score is low, you can fix it and only then apply for a fresh loan.
Before applying for Bank of Baroda Personal Loan, you must know the following factors:
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