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Bank of Baroda

Personal loan is what comes to the rescue of many people who have no other resort for funding their requirement. The personal loans are extended to credible people who are able to provide the required documents and establish a steady source of income. Individuals with a good credit score are likely to gain easy access to personal loan. Typically, banks expect the credit score to be 750 and above for extending the loan in a hassle-free manner. There is no collateral required for personal loan since it is an unsecured loan.

Bank of Baroda is a well-known bank which has significant presence in Gujarat and Maharashtra regions. As part of their regular banking activity, the bank has been extending personal loan to individuals.

What is personal loan?

Personal loans are also called as unsecured debt, they do not require any collateral. Personal loan is also called multi-purpose loan. The loan is extended to the applicant purely based on their credibility which is reflected through their credit score. A higher credit score can help the applicant get a good bargain on the personal loan. Typically, the interest rates on the personal loan is higher than all other loans extended by the bank. The applicant who has borrowed the loan will pay back the same in installments over a pre-determined period.

The personal loan will be extended as a lumpsum to the applicant at an interest rate which is determined by the bank based on the credit score of the applicant. The applicant must pay back the money in installments within the stipulated the timeframe.

Bank of Baroda personal loan interest rate

The interest rates applicable for customers is as mentioned below –

  • Rate of Interest for existing customers having account relationship of minimum -6- months: One-year MCLR +SP+3.00% to One-year MCLR +SP+ 6.00%
  • Other cases: For applicants having account relationship with other Bank at least for -6- months: One-year MCLR +SP+5.00% to One-year MCLR +SP+ 8.00%

Factors that impact Bank of Baroda personal loan interest rates

While many factors could have an impact on the quantum of loan extended to the applicant and the interest rate at which it is extended. Below are the key aspects which have the most impact on the quantum of loan and the interest rate provided to the applicant.

  • Credit score – The credit score is the first-hand information of the credibility of the applicant. Typically, the bank looks for 750 and above as credit score for extending any type of loan. Personal loan is extended to individuals with good credit score. Any individual whose score is not good enough, can improve it by making regular payments of EMI, closing outstanding loans.
  • Stability of income – Income stability has to be established for personal loan accessibility. If the applicant has a very stable source of income, then it is likely that the loan will be approved without hassle and the interest rate will be lower.
  • Reputed employer – If the applicant is an employee with a reputed organization, then it is likely that they will get the approval in a faster manner.
  • Relationship with bank – If the applicant is an existing customer and the customer has maintained the right balance throughout the tenure of the relationship with the bank, then the personal loan would be approved seamlessly.

Other Charges applicable on personal loan extended from Bank of Baroda

The personal loan extended by banks are subject to processing charges, these charges are a percent of the loan amount extended, with a cap on the maximum amount extended.

  • 2% of Loan amount
  • Minimum: Rs.1000/-
  • Maximum: Rs.10,000/-

Features of personal loan offered by Bank of Baroda

The key features of personal loan offered by Bank of Baroda is as mentioned below –

  • To apply for a personal loan, applicants can be employees of government bodies or private companies with minimum continuous service of one year. Similarly, self-employed professionals or business persons who want to apply for personal loans need to have their business or practice for at least one year.
  • Applicants need to be at least 21 years of age to be eligible for a personal loan, while co-applicants are not allowed. The maximum age to apply for personal loans is 60 years for salaried and 65 for non-salaried persons at the end of the repayment period.
  • The personal loan amount varies by location. In metro and urban areas, the loan amounts can range from Rs.1 lakh to Rs.10 lakhs. In semi-urban and rural areas, the personal loan amount varies from Rs.50,000 up to Rs.5 lakhs.
  • The processing charges for personal loans is calculated as 2% of the loan amount, with a minimum of Rs.1000 up to Rs.10,000.

Frequently asked questions

1. Who can apply for personal loan from Bank of Baroda?

Personal loan can be extended to salaried, self-employed and professionals.

  • Employees of Central / State Govt. / Autonomous Bodies/ Public / Joint Sector Undertakings, Public Limited Co. / MNCs & Educational Institutions – with minimum continuous service for 1 year
  • Insurance Agents- doing business for minimum last -2- years
  • Self Employed Professionals (Doctor, Engineer, Architect, Interior Designers, Tech. and Management Consultants, Practicing Company secretaries etc) -- with minimum 1 year stable business.
  • Self Employed Business persons - with minimum 1 year stable business.

2. How to apply for Bank of Baroda personal loan?

There are several ways of applying for Bank of Baroda personal loan:

  • Apply directly online at the bank’s official website
  • Personally visit nearest branch with the required documents
  • Contact the customer care department of the bank

3. How to calculate EMI applicable on Bank of Baroda personal loan?

The EMI can be calculated using the online calculator available on the official website of Bank of Baroda. Alternatively, one can do the calculation manually using excel as well. However, the EMI calculated using the calculator available on the website will provide accurate values.

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