Bank of Baroda understands that property ownership serves two vital functions: securing a comfortable home and enabling a promising investment. By financing up to 90% of your property’s cost at competitive rates @8.40% p.a., Bank of Baroda provides a reliable, convenient path to homeownership—equally appealing to residents and investors alike.
Bank of Baroda Home Loan Interest Rates by Employment
Bank of Baroda adjusts home loan interest rates based on whether you’re salaried, self-employed, or have a professional practice. Below is a quick look at how your employment type can influence your rate.
Bank of Baroda Home Loan Interest Rates for Salaried Employees
| Home Loan Type | Floating Interest Rates | Fixed Interest Rates |
|---|---|---|
| Home Loan For Salaried | 8.40% p.a. – 10.60% p.a. | 10.15% p.a. – 11.50% p.a. |
Bank of Baroda Home Loan Interest Rates for Self Employed
| Home Loan Type | Floating Interest Rates | Fixed Interest Rates |
|---|---|---|
| Home Loan For Salaried | 8.40% p.a. – 10.60% p.a. | 10.25% p.a. – 11.60% p.a. |
Bank of Baroda All Schemes Home Loan Interest Rates
Bank of Baroda offers multiple home loan schemes, each with its own interest rate structure and features. Here’s an overview of the current rates for various Bank of Baroda schemes.
| Home Loan Type | Home Loan Interest Rates |
|---|---|
| Baroda Home Loan | 8.40% p.a. – 10.60% p.a. |
| Baroda Home Loan to Corporates / Non Individuals | 8.65% p.a. – 11.10% p.a. |
| Baroda Max Savings Home Loan | 8.40% p.a. – 10.85% p.a. |
| Baroda Home Loan Takeover Scheme | Contact the Bank |
| Home Improvement Loan | 8.40% p.a. – 10.60% p.a. |
| Baroda Pre-Approved Home Loan | Contact the Bank |
| Baroda Top Up Loan | Contact the Bank |
| Baroda Home Suvidha Personal Loan | Applicable ROI on Home Loan including Risk premium (if applicable) (based on current BRLLR) + Strategic Premium + 0.50% |
| Credit Risk Guarantee Fund Scheme for Low Income Housing | Contact the Bank |
Read More: Documents Required for BOB Home Loan
All Schemes Offered by Bank of Baroda: A Detailed Overview
Bank of Baroda has a range of home loan schemes catering to diverse needs, from ready-to-move properties to under-construction projects. Read on to find the best fit for your housing requirements.
Baroda Home Loan Interest Rates
- Suited for buying or constructing a house/flat and for purchasing residential plots (with subsequent construction).
- Extends financing for house extensions or additional constructions.
- Offers a 0.05% interest concession for women borrowers.
- Provides a 0.10% interest concession for Gen Z and Millennials (under 40 years of age).
- Includes a moratorium period of up to 36 months after loan disbursement.
| Features | Details |
|---|---|
| Interest rate | 8.40% p.a. – 10.60% p.a. |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹20 Crore |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs21 – 70 years |
Baroda Max Savings Home Loan Interest Rates
- Links the sanctioned home loan with a dedicated savings bank (SB) account.
- Any credit balance in the linked SB account at day-end offsets the outstanding loan principal, resulting in reduced interest.
- Facilitates purchase or construction of a house/flat, purchase of residential plots, and reimbursement of construction-related expenses.
- Permits takeovers from other banks/HFCs/NBFCs/FIs.
- Sets the interest rate on the linked SB account to zero, ensuring maximum benefit from the daily reducing balance mechanism.
- Borrowers deposit Equated Monthly Instalments (EMIs) into this linked SB account for simplified loan management.
| Features | Details |
|---|---|
| Interest rate | 8.40% p.a. – 11.85% p.a. |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹20 Crore |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs 21 – 70 years |
Baroda Home Loan Takeover Scheme Interest Rates
- Allows resident and non-resident Indians to switch their existing home loans from other lenders to Bank of Baroda.
- Requires at least 12 EMIs paid on the existing loan; offers a special scheme with no income documentation required.
- Provides a top-up facility for additional funding needs.
- Enables linking of the home loan with an SB account, where any credit balance at day-end reduces the loan’s daily outstanding, thereby lowering interest.
| Features | Details |
|---|---|
| Interest rate | Contact the Bank |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹20 Crore |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs/ Staff Members21 – 70 years |
| Minimum CIBIL | 701 |
Bank of Baroda Home Improvement Loan Interest Rates
- Covers repairs, renovations, and improvements to an existing house or flat.
- Permits the purchase of new furniture, fixtures, or gadgets, such as air-conditioners or water purifiers.
- Helps convert a property into a modern living space without financial strain.
| Features | Details |
|---|---|
| Interest rate | Contact the Bank |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹50 Lakh |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs/ Staff Members21 – 70 years |
Baroda Pre-Approved Home Loan Interest Rates
- Provides an in-principle approval for a home loan before a property is identified.
- Determines the eligible loan amount based on prevailing interest rates and standard home loan guidelines.
- Assesses loan eligibility primarily on the applicant’s income and repayment capacity.
- Requires property documents to be submitted within 4 months from the pre-approval date.
- Recovers only the balance amount of applicable processing charges upon final home loan sanction, if property papers are submitted within the validity period.
| Features | Details |
|---|---|
| Interest rate | Contact the Bank |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹10 Crore |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs/ Staff Members 21 – 70 years |
| Processing fees | ₹8,500 + GST |
Baroda Top Up Loan Interest Rates
- Offers additional funding to existing home loan borrowers for personal or property-related needs (excluding speculative or illegal purposes).
- Features no prepayment penalty for early repayment.
- Calculates interest on a daily reducing balance, potentially lowering overall interest costs.
| Features | Details |
|---|---|
| Interest rate | Contact the Bank |
| Loan tenure | 30 years |
| Maximum Loan Amount | ₹10 Crore |
| Eligibility | Indians/ NRIs/ PIOs/ OCIs/ Staff Members 21 – 65 years |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
Baroda Home Suvidha Personal Loan Interest Rates
- Tailored for miscellaneous expenses related to home purchase, including insurance premiums, registration costs, stamp duty, GST, and club membership fees.
- Category A: Covers 100% finance for insurance premiums (credit life, health, property insurance).
- Category B: Offers 75% finance (25% margin) for stamp duty, registration costs, GST, and club membership fees.
- Permits reimbursement of costs incurred within 12 months from the payment date.
- Aligns repayment period with the linked home loan’s tenure or its remaining duration, ensuring seamless integration.
| Features | Details |
|---|---|
| Interest rate | Applicable ROI on Home Loan including Risk premium (if applicable) (based on current BRLLR) + Strategic Premium + 0.50% |
| Loan tenure | In the same line as applicable for home loan sanctioned/ proposed to the borrower. |
| Eligibility | Prospective borrowers for Baroda Home Loans including takeoverExisting borrowers under Baroda Home Loan Scheme |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
Credit Risk Guarantee Fund Scheme for Low Income Housing Interest Rates
- Provides collateral-free housing loans to borrowers in Economically Weaker Section (EWS) and Lower Income Group (LIG) categories in urban areas.
- Covers loans up to ₹8 lakh for purchase, construction, or improvement of dwelling units (up to 430 sq. ft. carpet area).
- Defines EWS as households earning up to ₹1,00,000 per annum, and LIG as those earning up to ₹2,00,000 per annum (subject to government revisions).
- Extends eligibility to groups or housing societies with at least 20 members, ensuring broader access to affordable housing.
| Features | Details |
|---|---|
| Interest rate | Contact the Bank |
| Loan tenure | 25 years |
| Maximum Loan Amount | ₹8 Lakh |
| Eligibility Criteria | EWS/LIG category |
| Processing fees | Loans up to ₹20 lakh: 0.35% Loans above ₹20 lakh: 0.40% Maximum fee: ₹15,000 + service tax Additional Fee: 0.10% (capped at ₹5,000 + service tax) |
Baroda Home Loan to Corporates / Non-Individuals Interest Rates
- Available to Public Ltd. Companies, Private Ltd. Companies, Partnership Firms, and LLPs for purchasing or constructing dwelling units for employees, directors, promoters, or partners.
- Permits takeover of existing loans from other banks and financial institutions.
- Restricts property location to municipal areas in metro or urban centers.
- Holds the property title in the name of the company or firm.
- Excludes entities engaged in Real Estate Business or categorized as NBFCs from eligibility.
| Features | Details |
|---|---|
| Interest rate | 9.90% p.a. – 11.40% p.a |
| Loan tenure | 15 years |
| Maximum Loan Amount | ₹10 Crore |
| Eligibility Criteria | Public Limited CompanyLtd. CompanyPartnership FirmsLLPs |
| Processing fees | 1% of Loan Amount Minimum: ₹8,500 Maximum: ₹1.5 Lakh |
How Does Reserve Bank of India (RBI) Repo Rate Impact Home Loan Interest Rates?
The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. It acts as a benchmark for the economy, influencing liquidity and credit availability. For example, a lower repo rate reduces banks’ borrowing costs, encouraging them to lend more.
Direct Impact on Home Loan Rates
- Rate cuts reduce borrowing costs : When the RBI lowers the repo rate, banks can borrow funds at cheaper rates, potentially reducing home loan interest rates
- Example from 2025 : In February 2025, the RBI reduced the repo rate by 25 basis points to 6.25%, followed by another cut to 6%.These moves aimed to stimulate economic growth by making loans more affordable.
Transmission to Borrowers
- Partial or delayed pass-through : Banks may not immediately pass the full benefit of repo rate cuts to borrowers. For instance, after the February 2025 cut, lenders gradually adjusted home loan rates, with potential EMIs dropping by ₹500–₹1,000 per lakh
- Dependence on bank policies : Banks factor in operational costs, profit margins, and market competition when adjusting rates. For example, SBI and HDFC reduced rates to 8.25–8.5% post-February 2025 cuts, but smaller lenders might lag.
Key Outcomes for Home Loan Borrowers (2025)
- Lower EMIs : A 25-basis-point repo rate cut could reduce monthly EMIs for existing and new borrowers if banks adjust their rates
- Potential sub-8% rates : Analysts suggest home loan rates might dip below 8% in 2025 due to cumulative repo rate reductions, benefiting first-time buyers and refinancers
Inflation and Repo Rate Dynamics
- High inflation : The RBI typically raises the repo rate to curb inflation, increasing home loan costs.
- Low inflation : Falling inflation allows the RBI to cut rates, easing the burden on borrowers.
Suggested Read: When Does Your Home Become a Non Performing Asset?
How to Get Lowest Bank of Baroda Home Loan Interest Rates?
- Maintain a high credit score to qualify for lower interest rates
- Compare different loan schemes and negotiate for better terms
- Opt for a shorter loan tenure if possible to reduce interest burden
- Leverage your existing relationship with the bank for preferential rates
- Make a higher down payment to lower your overall interest cost
Types of Home Loan Interest Rates
| Interest Rate Type | Definition | Pros | Cons |
|---|---|---|---|
| Fixed | Rate remains constant throughout a predetermined period or entire tenure. | – Predictable EMIs for budgeting – Protection against rising interest rates | – Typically, higher rates compared to floating – No benefit if market rates go down |
| Floating (Variable) | Linked to market benchmarks (e.g., Repo Rate, MCLR) and changes over time | – Often cheaper when rates fall – Can partly or fully prepay with lower penalties | – EMIs fluctuate with market conditions – Costs may rise if rates increase |
| Hybrid | Combination of fixed and floating phases. | – Stability in the initial fixed period – Potential cost savings in the variable phase | – Transition from fixed to floating can carry uncertainties – May incur a shift-related fee |
Suggested Read: All Banks Home Loan Interest Rates 2025
Factors Affecting Bank of Baroda Home-Loan Interest Rate
| Factor | How It Affects the Interest Rate |
|---|---|
| Credit score & repayment history | Higher credit scores & consistent repayments often lead to lower rates |
| Loan amount & tenure | Larger loan amounts or extended tenures can raise rates due to increased risk |
| Type of interest rate (fixed or floating) | Floating rates fluctuate with market changes; fixed rates remain constant but can be higher initially |
| Market & repo rate trends | Rates typically rise or fall in line with the central bank’s policy decisions |
| Employment & income stability | Steady job & robust income can fetch more favorable rates |
| Loan-to-value (LTV) ratio | A lower LTV (larger down payment) signals reduced risk, helping secure lower rates |
| Banking relationship | Good track record or existing relationship with the bank may result in preferential rates |
How are Home Loan Interest Rates Calculated?
Home loan interest rates typically start with a benchmark – for example, the repo-linked lending rate (RLLR) or MCLR. Your bank sets its own spread above this reference to cover operational and credit-related risks. That margin, in turn, depends heavily on your credit score, income stability, loan amount, and the overall risk perceived by the lender.
In addition, economic policies (like changes in the repo rate announced by the central bank) can cause benchmark rates to move up or down, directly influencing what you end up paying over time.
Suggested Read: RLLR vs. MCLR vs. PLR
Will Home Loan Interest Rates Go Down in 2025?
Yes, home loan interest rates in India have already started declining in 2025, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points (bps) on April 9, 2025 .
This reduction, combined with a similar cut in February 2025, brings the cumulative repo rate decrease to 50 bps this year, lowering the rate from 6.25% to 6% .
These cuts directly impact floating-rate home loans linked to the repo rate, which most banks use as their external benchmark.
EMI vs. Tenure Reduction: Which Saves More?
Banks typically shorten the loan tenure while keeping EMIs unchanged during rate cuts. Borrowers can opt for this or request an EMI reduction.
For example, a Rs 50 lakh loan at 8.25% (post-February cut) will now cost 8%, lowering monthly EMIs by Rs 777 (from Rs 42,603 to Rs 41,826).
- Lower EMIs : Immediate cash flow relief (e.g., saving Rs 777/month). Total interest saved over 20 years: ~Rs 1.85 lakh .
- Shorter Tenure : Retaining the original EMI shaves 10 months off the loan term, saving ~Rs 4.36 lakh in interest. Experts recommend this option for 234% higher savings compared to EMI cuts.
Suggested Read: What is Reverse Repo Rate?
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Frequently Asked Questions
The loan amount depends on factors like income, repayment capacity, credit score, and property value.
Bank of Baroda offers a 0.05% concession for women borrowers and a 0.10% concession for Gen Z and Millennials (under 40).
The maximum repayment tenure typically goes up to 30 years, subject to the borrower’s age and eligibility.
Commonly required documents include identity proof, address proof, income proof (salary slips or IT returns), bank statements, and property-related documents.
Generally, no prepayment penalty is charged on individual home loans with a floating interest rate.
Yes, Bank of Baroda offers home loans to NRIs/PIOs/OCIs under specific schemes like the Baroda Home Loan Takeover Scheme.
Yes, existing home loan borrowers can avail Baroda Top Up Loan for additional financial needs, excluding speculative purposes.
Yes, the Baroda Home Loan Takeover Scheme allows borrowers to switch their existing home loans to Bank of Baroda.
A moratorium of up to 36 months may be available after loan disbursement for construction or under-construction properties.
Yes, with the Baroda Max Savings Home Loan, the credit balance in the linked savings account at day-end offsets the outstanding principal, reducing interest costs.
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