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Bank of Baroda Personal Loan Interest Rate 2026

A personal loan from Bank of Baroda is a practical financing option when you need quick funds for expenses such as medical emergencies, travel, education, weddings, or debt consolidation. Backed by one of India’s most trusted public sector banks, this loan is designed to offer flexibility, transparency, and affordable borrowing for both salaried individuals and pensioners.

The Bank of Baroda personal loan interest rate is competitive and tailored to suit different borrower profiles. Currently, the interest rate starts from 10.15% to 17.50% per annum on a floating rate basis, while fixed interest rates range between 11.00% and 18.05% per annum. The exact rate offered depends on key factors such as your credit score, income stability, employment category, and loan tenure. With flexible repayment options and a straightforward application process, Bank of Baroda personal loans help you manage financial needs without long-term financial strain.

Latest Bank of Baroda Personal Loan Interest Rates 2026

1. Baroda Personal Loan Interest Rates

Floating Interest Rates

Applicable Conditions	Applicable Floating Interest Rate
Government and defence staff holding a Bank of Baroda salary account under SB 182 or SB 186	10.15% to 10.65% p.a.
Gold: Govt, PSU, A-rated company, and reputed institution employees with a Bank of Baroda salary account	10.65% to 15.50% p.a.
Category C (Silver): Same employer profile as the Gold category, but with a salary account held at another bank	11.15% to 15.50% p.a.
Category B: Private/public employees, professionals, and business owners with an existing Bank of Baroda account	11.90% to 15.50% p.a.
Category A: Private or public sector employees, professionals, insurance agents, and business owners banking with another bank	13.90% to 17.50% p.a.

Fixed Interest Rate

Applicable Conditions	Applicable Fixed Interest Rate
Government and defence staff holding a Bank of Baroda salary account under SB 182 or SB 186	11.00% to 11.50% p.a.
Gold: Govt, PSU, A-rated company, and reputed institution employees with a Bank of Baroda salary account	11.25% to 14.10% p.a.
Category C (Silver): Same employer profile as the Gold category, but with a salary account held at another bank	11.75% to 14.10% p.a.
Category B: Private/public employees, professionals, and business owners with an existing Bank of Baroda account	12.80% to 15.05% p.a.
Category A: Private or public sector employees, professionals, insurance agents, and business owners banking with another bank	14.75% to 18.05% p.a.

2. Baroda Digital Personal Loan Interest Rate

Fixed ROI:

Conditions	Applicable Rate of Interest	Effective Rate of Interest
Based on CIBIL score and internal credit review	Min: 1-Year MCLR + SP + 3.80% Max: 1-Year MCLR + SP + 9.15%	12.80% – 18.15% p.a.

Floating ROI:

Conditions	Applicable Rate of Interest	Effective Rate of Interest
Based on CIBIL score and internal credit review	Min: BRLLR + SP + 3.50% Max: BRLLR + SP + 8.85%	11.65% – 17.00% p.a.

3. Baroda Loan to Pensioners Interest rates

Conditions	Repo Rate + Spread	Effective Rate of Interest
Digital	BRLLR + SP + 2.75%	10.90% p.a.
Non-Digital	BRLLR + SP + 3.25%	11.40% p.a.
Retired Bank of Baroda staff / family pensioners	BRLLR + SP + 0.60%	8.75% p.a.

Fixed vs Floating Interest Rate – Which Is Better?

When choosing a personal loan, one of the most important decisions is whether to go with a fixed or floating interest rate. Both options have their own advantages, and the better choice depends on your financial comfort and future plans.

Fixed Interest Rate

With a fixed interest rate, the rate remains the same throughout the loan tenure. This means your EMI stays constant, making it easier to plan your monthly budget without worrying about market fluctuations. Fixed rates are ideal for borrowers who prefer stability and want predictable repayments, especially when interest rates are expected to rise. However, fixed-rate loans usually come with slightly higher interest and may have stricter prepayment or foreclosure charges.

Floating Interest Rate

A floating interest rate changes based on market conditions and benchmark rates. If interest rates in the economy fall, your EMI or loan tenure may reduce, helping you save on total interest. Floating rates are generally lower at the start and are suitable for borrowers who can handle minor EMI fluctuations and are comfortable with some level of uncertainty. The downside is that EMIs may increase if market rates go up.

Which Option Should You Choose?

Choose a fixed interest rate if you want stable EMIs and stress-free budgeting.
Choose a floating interest rate if you are flexible with EMIs and want to benefit from potential rate cuts.

Key Factors That Affect Bank of Baroda Personal Loan Interest Rate

When banks give a personal loan, they take the loan amount back along with interest. This amount is calculated in the form of monthly EMIs, either as a fixed or floating rate of interest. An ideal personal loan is one with the lowest interest rate, as this reduces the overall amount paid back to the lender.

The following are some of the key factors that affect the Bank of Baroda Personal Loan Interest rates. They are:

Age:

The interest rate for your loan tends to be higher when you are close to retirement. The risk of you repaying the loan is higher.

Monthly Income:

Lender always wants customers who have secured employment with regular income. This ensures they receive their repayment on time.

Credit Score:

Your credit score is a measure of your financial responsibility. If you have a good credit score, the lender will have the trust that you are handling your credit responsibly.

Relationship with Bank:

Individuals typically obtain personal loans only from lenders with whom they have an account or credit card. The reason is that they have maintained trustworthiness by keeping their accounts and paying their credit card bills on time. The lender will consider reducing the interest rate.

Employer’s Reputation: Customers working in a reputable organization are a safe bet for lenders, as your repayment of personal loans is assured.

DTI Ratio:

Lenders would like to find out whether you have any existing loans and how much will be deducted from your monthly salary for these loans. This is called the DTI ratio. An ideal DTI would be 20% to 40% of your monthly salary.

Loan Tenure:

The tenure of the loan influences the interest rate of the loan. The longer the tenure, the higher the rate of interest for your loan.

Borrower’s Location: In case you have your residence in an urban or semi-urban area. This also has an impact on the interest rate.

Bank of Baroda Personal Loan EMI Calculation Explained

When you go for the Bank of Baroda personal loan, your repayments are done through the Equated Monthly Installments (EMIs). This includes both the principal and the interest amount that are spread evenly throughout the tenure of the loan. The EMI that you pay might be fixed or variable, depending on the type of interest you opted for at the time of procuring the loan.

A standard formula is used for EMI calculation of the loan amount, interest rate, and tenure, thereby determining the EMI amount.

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Let us find the EMI calculation with the help of a simple example.

For example, you have taken a personal loan of Rs. 5,00,000 for a tenure of 5 years at the rate of 10.90%

Then the calculation needs to be deciphered as follows:

P = Rs.5,00,000

N = 12 x5 = 60 Months

R = 10.90/100 = 0.1090

Your Monthly EMI = [5,00,000 X 0.1090 X (1 + 0.1090)^60] / [(1 + 0.1090)^60 – 1] = Rs. 10,846

Processing Fees & Charges

We are trying to break down the list of expenses that are charged as fees and other charges that come with personal loans. They are:

Prepayment	3% of the amount paid during the first 3 months of the loan tenure
Late payment Charges	2% of the overdue amount
Documentation Charges	Rs.150 per duplicate statement
EMI Bounce Charges	Rs.1500 per bounce charges
Loan Cancellation Charges	Interest from the disbursement date to the cancellation date
Duplicate NOC Charges	Rs.150

Bank of Baroda Personal Loan Interest Rate Based on Credit Score

Your credit score plays a predominant role when it comes to getting a personal loan. Bank of Baroda offers personal loans with interest rates based on the individual's credit score. A higher credit score will help you get a lower rate of interest. A higher credit score is an indicator that you have the habit of handling credit responsibly. The bank assesses your repayment behavior based on your credit score. Maintaining a clean credit profile helps you secure personal loans on better terms and conditions. BOB also checks your Debt-to-Income ratio to ensure you can handle the personal loan before awarding one. Regularly checking your credit report is always a prudent practice, as it helps you catch and fix errors that can impact your credit score.

Bank of Baroda Toll-Free Numbers

What follows is the list of toll-free numbers that customers can contact in case they get stuck with the BOB personal loan process. They are:

Toll-Free Numbers (Domestic): 1800 5700, 1800 5000

Toll-Free Numbers (Domestic Customers Calling from Abroad): 091 79 66296009

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Given that this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user will confirm with the relevant source before making any choices or taking any actions.

Frequently Asked Questions

1. What is the interest rate of personal loan in BoB?

The personal loan interest rate in Bank of Baroda starts from 10.15% to 17.50% per annum on a floating rate, while fixed interest rates range between 11.00% and 18.05% per annum.

2. How is the interest calculated for the Bank of Baroda Personal Loan?

The interest for the Bank of Baroda Personal Loan is calculated on the reducing balance method. This means the interest is charged only on the outstanding balance amount of the loan.

3. Is the BOB personal loan interest rate fixed or floating?

Bank of Baroda offers both Fixed and Floating rates of interest to its customers. When you take a Bank of Baroda personal loan at a fixed rate of interest, the interest amount might be higher initially. On the contrary, opting for a floating rate of interest will result in a minimal interest amount, thereby reducing the overall cost of the loan.

4. How can I reduce my interest rate in Bank of Baroda?

5. What is the EMI for a ₹5 lakh loan in Bank of Baroda?

The EMI is based on the interest and loan tenure associated with the loan. For a personal loan of Rs. 5,00,000 over 5 years at an 11% interest rate, the EMI is approximately Rs. 10,870 per month.

6. Are there any processing fees associated with the Bank of Baroda Personal loan?

Yes. Bank of Baroda charges a processing fee of 1% to 2% along with GST for its loan services from its customers.

7. How does my credit score help me in securing a low-interest personal loan?

A higher credit score is an indicator that you are responsible enough to handle credit. The bank prefers such customers as they fall into the low-risk category.