When applying for a home loan, knowing the BOB home loan processing fee helps in planning expenses. The fee covers administrative costs, including document verification and legal checks. Understanding these charges ensures a smooth loan process without unexpected costs.
Bank of Baroda Home Loan Processing Fees Structure
Here is a detailed breakdown of the processing fees for different types of Bank of Baroda home loans. This will help you understand the charges associated with each loan category.
| Loan Type | Processing Fee |
|---|---|
| Baroda Home Loan & Home Improvement Loan | – Loan Amount up to Rs. 50 lakh: 0.50% of the loan amount Minimum: Rs. 8,500 (upfront) Maximum: Rs. 15,000 – Loan Amount above Rs. 50 lakh: 0.25% of the loan amount Minimum: Rs. 8,500 (upfront) Maximum: Rs. 25,000 |
| Baroda Home Loan Top-Up | 0.35% of the loan amount Minimum: Rs. 5,000 Maximum: Rs. 12,500 |
| Takeover of Home Loan (Resident/NRI/PIOs) | Flat fee of Rs. 8,500 (upfront) |
| Pre-Approved Home Loan (In-Principle Sanction) | 0.25% – 0.50% of the loan amount Rs. 8,500 |
Key Points:
- Unified Processing Charges: These fees encompass documentation, inspection, legal verification, and valuation costs.
- No Prepayment Charges: Borrowers with floating interest rates are not subject to fees for prepayment or foreclosure.
Check Out: Bank of Baroda Home Loan Documents
Additional Fees and Charges for Bank of Baroda 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 |
Check Out: Bank of Baroda Slashes Home Loan Rates
Bank Of Baroda Home Loan Prepayment/Part-Payment Charges
Below is a detailed breakdown of BOB’s Prepayment Charges.
| Loan Type | Prepayment/Part-Payment Charges |
|---|---|
| Floating Rate Loans (Individuals) | NIL |
| Fixed Rate Loans (Individuals) | – Prepayment within 3 years: 2% penalty on the amount prepaid. – Prepayment after 3 years: No charges. |
Check Out: Bank of Baroda Home Loan Eligibility Calculator
Compare Home Loan Processing Fees of Top Banks and HFCs
| Banks/ NBFCs | Processing Fees |
|---|---|
| SBI | 0.35% of the loan amount + GST Minimum: ₹2,000 + GST Maximum: ₹10,000 + GST |
| HDFC | Up to 0.50% of the loan amount or ₹3300 (whichever is higher) |
| LIC Housing Finance | 0.25% of the loan amount Minimum: ₹ 5,000 Maximum: ₹50,000 |
| ICICI Bank | Up to 2% of the loan amount |
| Bank of Baroda | Up to 0.40% of the home loan |
| Bank of India | 0.25% of loan amount (Min ₹2,500 – Max ₹20,000) |
| Canara Bank | 0.50% (Min Rs.1500/-+GST and Max. Rs.10,000/-) |
| Bajaj Housing Finance | Up to 4% of the loan amount |
| PNB Housing Finance | 0.35% of the loan amount Min: Rs. 2,500/Max: Rs. 15,000/ |
| IDBI Bank | 0.50% of loan amount |
| Axis Bank | 1% of the loan amount, minimum Rs. 10,000; Rs. 5,000 +GST upfront |
Check Out: Bank of Baroda Home Loan Interest Rates 2025
Why Does Bank of Baroda Take Processing Fees?
- Administrative Costs: Covers application processing, documentation, and verification efforts.
- Legal & Technical Checks: Funds property valuation, legal due diligence, and technical assessments.
- Risk Assessment: Supports credit checks, eligibility evaluations, and loan structuring.
- Compliance & Regulation: Ensures adherence to banking norms and regulatory requirements.
Suggested Read: Bank of Baroda Home Loan Documents Required
Is Bank of Baroda Home Loan Processing Fees Refunded?
Bank of Baroda’s home loan processing fees are generally non-refundable and are retained by the lender regardless of whether the loan is closed early, rejected post-approval, or repaid prematurely.
These fees cover administrative expenses, including documentation, verification, legal due diligence, and technical assessments conducted during the loan setup.
Refunds are rare and apply only under specific conditions explicitly outlined in the loan agreement or mandated by regulatory guidelines.
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When Does Bank of Baroda Collect Home Loan Processing Fees?
Bank of Baroda collects a one-time, non-refundable processing fee when you submit your home loan application. This fee covers the cost of evaluating your application, including verifying your eligibility and assessing your financial profile.
Am I Still Liable to Pay The Processing Fees if My Home Loan is Sanctioned But I Don’t Avail It?
Yes, you are typically liable to pay the processing fee regardless of whether your loan is approved or rejected.
Processing fees are charged for the administrative work involved in evaluating your application, verifying documents, and approving your loan—regardless of whether you eventually use the funds.
What Happens if Bank of Baroda Home Loan Processing Fees Cheque Gets Bounced?
If your cheque for Bank of Baroda’s home loan processing fee bounces, here’s what you need to know:
Immediate Consequences:
- Your application may be delayed or rejected until the payment issue is resolved.
- Bank of Baroda (and your bank) may impose a cheque bounce penalty fee (as per their policy and RBI guidelines).
Steps to Resolve:
- Inform Bank of Baroda about the bounced cheque and request an alternative payment method (e.g., NEFT/RTGS, demand draft, or online transfer).
- Clear the processing fee along with any additional charges levied due to the bounce.
- Ensure the original cheque is replaced or canceled to avoid further complications.
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Is it Possible to Get a Home Loan with Zero Processing Fees?
Yes, it is possible to get a home loan with zero processing fees in India, though it depends on specific conditions, lenders, and timing. Here’s a detailed breakdown:
- Periodic Waivers: Many lenders (e.g., SBI, HDFC, LIC Housing Finance, PNB Housing Finance) occasionally waive processing fees as part of promotional campaigns to attract borrowers. These offers are often time-bound (e.g., festive seasons or year-end schemes).
- Targeted Schemes: Some lenders offer fee waivers to specific borrower segments, such as women applicants, government employees, or first-time homebuyers.
- Pradhan Mantri Awas Yojana (PMAY): Under this scheme, eligible first-time homebuyers (especially in EWS/LIG/MIG categories) may receive subsidies and fee concessions, including reduced or waived processing fees.
- State-Level Schemes: Some state governments or housing boards (e.g., MHADA in Maharashtra) collaborate with lenders to offer subsidized loans with minimal fees.
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How is Home Loan Processing Fees Calculated?
Processing fees are typically calculated as a percentage of the loan amount , though some lenders charge a flat fee. The common range is 0.25% to 2% of the loan principal , depending on the lender and borrower profile.
For a ₹50 lakh loan with a 1% processing fee:
₹50,00,000 × 1% = ₹50,000 (processing fee).
Some lenders may cap the fee (e.g., maximum ₹75,000, even for larger loans).
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Factors Affecting Bank of Baroda Home Loan Processing Fees
- Loan amount – higher principal means a larger percentage‑based fee (until it hits the cap).
- Lender’s pricing policy – flat fee, tiered slabs, or percentage rate decide the base charge.
- Borrower segment – women, government staff, or first‑time buyers often get concessional rates.
- Credit score – stronger scores give borrowers bargaining power for a lower fee.
- Property profile – under‑construction or non‑standard properties need extra due‑diligence, pushing costs up.
- Loan type – balance transfer or top‑up loans may carry higher or separate processing fees.
- Documentation load – multiple co‑applicants or complex income proofs increase verification expenses.
- Promotional window – festive or year‑end campaigns can drop the fee to zero.
- Government schemes – PMAY or state housing tie‑ups cap or waive processing charges.
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Also Read: Home Loan Charges and Fees
Conclusion
Understanding the BOB home loan processing fee is crucial before applying for a loan. The fee depends on the loan amount, borrower profile, and other factors. Reviewing the latest charges and additional costs helps in better financial planning. Always check with the bank for updated policies to avoid unexpected expenses.
Frequently Asked Questions
The BOB home loan transfer fee ranges from ₹5,000 to 0.50% of the loan amount, whichever is higher, plus GST and other applicable taxes. The exact charges depend on the loan terms and bank policies.
Bank of Baroda requires a minimum balance based on branch location. Metro and urban branches need ₹2,000, semi-urban ₹1,000, and rural ₹500. A 6% charge applies monthly on the shortfall if the required balance is not maintained.
Bank of Baroda charges a 3% pre-closure fee or a minimum of Rs. 100 for closing an EMI facility before the tenure ends. This fee applies to the remaining principal amount.
Yes, Bank of Baroda is a public sector bank owned by the Government of India. It was nationalised in 1969 and is one of the largest government banks in the country.
Bank of Baroda charges a 2% processing fee or a minimum of ₹100 for EMI conversions. Interest rates range from 39% to 42% annually, with repayment options from 6 to 36 months. A zero-cost EMI option is also available.
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