When financing a modest home under Bank of Baroda’s Credit Risk Guarantee Fund Scheme for Low Income Housing, your loan up to ₹5 lakh comes with a government-backed guarantee—no collateral or third-party surety needed.
Launched by the Ministry of Housing & Urban Poverty Alleviation and managed by the National Housing Bank, this scheme empowers Economically Weaker Section (EWS) and Lower Income Group (LIG) borrowers in urban areas to access affordable housing credit on favorable terms.
With the risk guarantee fund absorbing potential defaults, Bank of Baroda can extend loans swiftly, reducing paperwork and opening the door to secure home ownership for low-income families.
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Highlights
Here’s a quick overview of the key features—interest rates, loan amounts, and fees—so you can decide if the home loan is the right choice for you.
| Aspects | Highlights |
|---|---|
| Interest Rate | 8.00% p.a. onwards |
| Loan Tenure | 25 Years |
| Loan Amount | ₹8 Lakh |
| Processing Fees | ₹8,000 – ₹25,000 |
Suggested Read: How to Check PMAY Benificiary List?
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Interest Rates
Check out the interest rates for home loan in 2025 to get an idea of your potential EMI and costs.
Floating-Rate Baroda Max Savings Home Loan
| Loan Limit | Borrower Type | Repo Rate + Spread | Effective Interest Rate (p.a.) |
|---|---|---|---|
| Up to ₹ 75 lakh | Salaried | BRLLR – 0.65 % to BRLLR + 0.85 % | 8.00 % p.a. – 9.50 % p.a. |
| Up to ₹ 75 lakh | Non-Salaried | BRLLR – 0.65 % to BRLLR + 0.95 % | 8.00 % p.a. – 9.60 % p.a. |
| Above ₹ 75 lakh | Salaried | BRLLR – 0.40 % to BRLLR + 1.10 % | 8.25 % p.a. – 9.75 % p.a. |
| Above ₹ 75 lakh | Non-Salaried | BRLLR – 0.40 % to BRLLR + 1.20 % | 8.25 % p.a. – 9.85 % p.a. |
Fixed-Rate Baroda Max Savings Home Loan
| Loan Limit | Borrower Type | Repo Rate + Spread | Effective Interest Rate (p.a.) |
|---|---|---|---|
| Up to ₹ 75 lakh | Salaried | BRLLR + 1.00 % to BRLLR + 1.85 % | 9.65 % p.a. – 10.50 % p.a. |
| Up to ₹ 75 lakh | Non-Salaried | BRLLR + 1.10 % to BRLLR + 1.95 % | 9.75 % p.a. – 10.60 % p.a. |
| Above ₹ 75 lakh | Salaried | BRLLR + 1.25 % to BRLLR + 2.10 % | 9.90 % p.a. – 10.75 % p.a. |
| Above ₹ 75 lakh | Non-Salaried | BRLLR + 1.35 % to BRLLR + 2.20 % | 10.00 % p.a. – 10.85 % p.a. |
Suggested Read: PMAY Eligibility Criteria
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Features and Benefits
- Home loans up to ₹8 lakh for urban EWS/LIG borrowers, no collateral or third-party guarantee
- Residential units up to 430 sq ft carpet area
- Groups or housing societies of ≥20 eligible members qualify
- Loans for home improvement, construction, acquisition, purchase (new or resale), capped at ₹8 lakh per person
- EWS: Annual household income ≤ ₹1 lakh; LIG: ₹1 lakh + 1 to ₹2 lakh (income brackets per MHUPA)
- Guarantee period: Up to 25 years or until loan closure, whichever is earlier.
Suggested Read: The Growth of Affordable Housing in India
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Eligibility Criteria
Find out the basic eligibility requirements, such as age, income, and existing home loan status, before applying for a home loan.
| Criterion | Requirement |
|---|---|
| Borrower Type | New individual borrowers in the EWS/LIG category |
| Loan Amount | ≤ ₹8 lakh (or as revised by the Trust) |
| Unit Size | ≤ 430 sq ft (40 sq m) carpet area |
| Security | No collateral or third-party guarantee |
| Group Eligibility | Groups or housing societies of ≥ 20 eligible members |
| Undertaking | Borrower must declare they have not availed any other housing loan under this scheme nor any additional risk cover on the same loan |
Additional Requirements
| Activity | Details |
|---|---|
| Home improvement | New work only; renovation/repairs excluded |
| Construction | New residential unit construction |
| Acquisition | Purchase of new dwelling units |
| Purchase | Purchase of second-hand dwelling units |
| Loan Cap per Person | ≤ ₹8 lakh |
Housing Loans Not Eligible for Guarantee Cover
- Loans already covered by any government scheme, general insurer, or other guarantee/insurance institution.
- Loans where the borrower has previously availed a guaranteed housing loan and defaulted on repayment to the Trust or equivalent scheme.
- Loans secured against any collateral or third-party guarantee.
- Loans sanctioned at an interest rate above the prevailing eligible category rate or more than 2 % over the lender’s base rate (whichever is lower).
Suggested Read: Investment Opportunities in Andheri’s Slum
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Processing Fee
Understand the processing fees involved so you can factor them into your overall cost when opting for a home loan.
| Loan Amount | Processing Fee |
|---|---|
| Up to ₹50 Lakh | Minimum: ₹8,500 Maximum: ₹15,000 |
| Above ₹50 Lakh | Minimum: ₹8,500 Maximum: ₹25,000 |
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Other Fees and Charges
Be aware of any extra charges, such as prepayment penalties or overdue fees, that may apply to your home loan.
| Charge Type | Amount |
|---|---|
| Takeover of Home Loan | – Loans up to ₹20 lakh: 0.35% of the loan amount – Loans above ₹20 lakh: 0.40% of the loan amount – Maximum: ₹15,000 (Service tax applicable separately) |
| Prepayment Charges | Nil for all home loans |
| Inspection Charges | – First Post-Inspection: No charge – Second & Onwards: ₹100 + out-of-pocket and conveyance charges (per inspection) + GST |
| Legal Reports / Valuation Charges | Actual charges as per legal and valuation fees incurred |
| Conversion Charges (Fixed to Floating) | – One-time process – 0.50% per year of the residual loan period (maximum 2% of outstanding loan) + GST – Premature Closure Fee: 0.5% of balance outstanding per year (maximum 3%) |
| Conversion Charges (Floating to Fixed) | Not Available |
Suggested Read: West Bengal Housing Scheme for All
Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing Documents Required
Ensure you have all the necessary documents ready, from identity proof to income statements, to make the home loan application process smooth.
General Documents
| Document Category | Details / Notes |
|---|---|
| Application Form & Photos | Duly filled and signed application form + 3 photographs |
| Proof of Identity | PAN Card (mandatory for loan amounts above ₹ 10 lakh) |
| Alternate ID Proofs | Any one: Driver’s Licence / Voter ID / Passport / Aadhaar Card |
| Proof of Residence | Any one: Driver’s Licence, Ration Card, Voter ID, Passport, Aadhaar Card, or Registered Rent Agreement |
| Previous Loan Evidence | Last 1-year loan a/c statement and sanction letter. (If the loan is from BoB, also provide Account No. & Cust ID) |
| Proof of Assets | Documents for LIC, NSC, KVP, Mutual Funds, Property, etc. |
| Assets & Liabilities Statement | Comprehensive current statement |
| ITR Verification Report | Latest Income-Tax-Return verification report |
Income Proof for Salaried
| Salaried Individuals – Required Income Documents |
|---|
| Latest 3 salary slips (plus 1 slip for each guarantor, if any) |
| Form 16 + ITR (past 1 year) |
| Employee ID card copy |
| Appointment / promotion / increment letter |
| 6-month salary-account statement(or simply BoB A/c No. if already banking with BoB) |
Income Proof for Self Employed
| Self-Employed / Professionals – Required Income Documents |
|---|
| Balance Sheet, Profit & Loss A/c, and income computation (last 2 years) |
| ITR + Form 26AS (last 2 years) |
| Business proof – Gumasta licence, registration certificate, GST/Service-Tax, etc. |
| Tax assessment / clearance orders, challans, TDS certificates (Form 16A) |
| Additional if Partnership / Pvt Ltd: |
| • Firm’s PAN & address proof |
| • MoA & AoA |
| • Audited results + ITR (last 2 years) |
| • Current A/c statement (last 1 year) |
Also Read: Property Documents for Home Loans: NRI vs Indians
How to Apply for Bank of Baroda Credit Risk Guarantee Fund Scheme for Low Income Housing?
The application process is easy—simply fill in your details, upload the required documents, and get started on your loan.
- Visit the official Bank of Baroda website.
- Go to the Home Loans section and select “Credit Risk Guarantee Fund Scheme for Low Income Housing.” Click “Apply.”
- Fill Out Personal Details
a. Enter your Full Name and Email ID in the provided fields.
b. Select your Preferred Branch, including State, City, and Address. - Upload Documents
Upload scanned copies of your KYC documents, income proofs, and property documents.
- Submit Application
a. Agree to the terms and conditions by ticking the box.
b. Click on ‘Submit’ to finalize your application.
Suggested Read: Minimum CIBIL Score for BOB Home Loan
Compare Top Banks Home Loan Interest Rates 2025
Explore home loan top-up offers from different banks to find the best deal that fits your needs.
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.50% p.a. onwards | 8.5% p.a. onwards | 8.50% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Conclusion
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Frequently Asked Questions
A household consisting of husband, wife and unmarried children that does not already own a pucca (all‑weather) house anywhere in India. Adult earning members can be treated as separate households.
– EWS: ≤ ₹3 lakh p.a.
– LIG: ₹3‑6 lakh p.a.
– MIG I: ₹6‑12 lakh p.a.
– MIG II: ₹12‑18 lakh p.a.
Yes. At least one female member must be an owner or co‑owner of the house bought under PMAY‑U 2.0.
No. Prior benefit under PMAY or any other Central housing scheme disqualifies you.
– EWS/LIG: 6.5 % on loan up to ₹6 lakh
– MIG I: 4 % on ₹9 lakh
– MIG II: 3 % on ₹12 lakh
The effective saving over 20 years can reach about ₹2.67 lakh (EWS/LIG) or ₹1.8 lakh (MIG).
No. It is treated as a capital receipt credited against your loan; it is not added to your taxable income. (Circulars from MoHUA/NHB treat the credit as non‑taxable.)
Yes—PMAY projects must meet minimum build-up area, structural, and material benchmarks under the Harmonised Guidelines for Real Estate Development (HGFAR), ensuring durability and safety.
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