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Transferring an existing home loan to Bank of Baroda (BoB) can help borrowers reduce their EMI burden, benefit from lower interest rates, or access flexible repayment options. As one of India’s leading public sector banks, Bank of Baroda offers a Home Loan Balance Transfer (HLBT) facility with competitive rates, transparent terms, and additional features like top-up loans. This article provides a detailed overview of the Bank of Baroda Home Loan Balance Transfer process, including eligibility, documents, application steps, and key considerations to help you make an informed decision.
The Bank of Baroda Home Loan Balance Transfer allows borrowers to shift their outstanding home loan from another lender—such as banks, housing finance companies (HFCs), or NBFCs—to BoB. The goal is to secure a lower interest rate, extend the repayment tenure, or access additional funds, thereby reducing the overall cost of borrowing. BoB’s HLBT facility is designed for convenience, with minimal documentation and quick processing, making it suitable for borrowers seeking better loan terms.
Bank of Baroda’s HLBT facility offers several advantages:
Competitive Interest Rates: Starting at 8.40% p.a. (as of April 2025), BoB provides some of the lowest rates among public sector banks, lowering monthly EMIs.
Extended Tenure: Repayment periods up to 30 years for affordable EMIs, ideal for salaried and self-employed borrowers.
Top-Up Loan: Eligible borrowers can avail of a top-up loan for home improvements or other financial needs, subject to creditworthiness.
No Prepayment Penalty: Floating-rate loans have no prepayment charges, allowing early repayment without penalties.
Transparent Charges: Clear disclosure of fees, with processing charges as low as 0.25%–0.50% of the loan amount.
PMAY Benefits: Eligible borrowers under the Pradhan Mantri Awas Yojana (PMAY) can transfer loans and avail of interest subsidies.
To qualify for BoB’s HLBT, borrowers must meet specific criteria. The following table highlights the key requirements:
|
Criteria |
Details |
|---|---|
|
Age |
21–70 years (at loan maturity) for both salaried and self-employed. |
|
Nationality |
Residents of India; NRIs under specific schemes. |
|
Occupation |
Salaried (government, PSU, private sector, or MNCs) with 1 year of service; self-employed professionals or business owners with 2 years of business continuity. |
|
Minimum Income |
₹25,000 per month (salaried); ₹2 lakh annual profit after tax (self-employed). |
|
Credit Score |
CIBIL score of 701 or above; higher scores (750+) preferred for better rates. |
|
Minimum Loan Amount |
₹1 lakh (outstanding balance). |
|
Repayment History |
Minimum 12 months of regular EMI payments with the existing lender; no defaults or overdue payments in the last year. |
|
Property Type |
Residential property (flat, house, or approved plot) with clear title deeds. |
Note: Eligibility may vary for specific schemes like Baroda Home Loan Advantage or PMAY-linked loans.
Bank of Baroda offers competitive rates and transparent charges for its HLBT facility. Below is a highlight table summarizing the financial aspects:
|
Aspect |
Details |
|---|---|
|
Interest Rate |
8.40%–12.45% p.a. (floating); 10.50%–14.00% p.a. (fixed) as of April 2025. |
|
Processing Fee |
0.25%–0.50% of the loan amount + GST (minimum ₹7,500, maximum ₹20,000). |
|
Prepayment Charges |
Nil for floating-rate loans; up to 2% for fixed-rate loans. |
|
Top-Up Loan |
Up to ₹50 lakh, subject to eligibility and property valuation. |
|
Loan Tenure |
Up to 30 years, including a moratorium period (if applicable). |
Note: Rates and charges are subject to change. Check with Bank of Baroda or Ambak’s website for the latest details.
To process the balance transfer, Bank of Baroda requires the following documents:
Application Form: Duly filled form with photographs of the borrower and co-borrower.
Identity Proof: Aadhaar card, PAN card, passport, voter ID, or driving license.
Address Proof: Aadhaar card, utility bill, rent agreement, or passport.
Income Proof:
Salaried: Last 3 months’ salary slips, Form 16, and 6 months’ bank statements.
Self-Employed: IT returns for the last 2 years, profit and loss statement, and balance sheet.
NRIs: Salary certificate, work permit, employment contract, and overseas bank statements.
Property Documents: Sale agreement, title deeds, approved building plan, possession certificate, and NOC from the existing lender.
Loan Documents: Loan account statement for the last 12 months, sanction letter, and list of original documents held by the current lender.
Bank Statement: 6 months’ statement of the account where salary or business transactions are credited.
Note: Additional documents may be required for NRIs or PMAY applicants.
The application process for BoB’s HLBT is efficient, with both online and offline options. Follow these steps:
Assess Eligibility:
Use Ambak’s Bank of Baroda Home Loan Eligibility Calculator to confirm if you meet the criteria based on income, credit score, and loan balance.
Estimate Savings:
Use Ambak’s Bank of Baroda Home Loan EMI Calculator to input your current loan details (outstanding amount, interest rate, remaining tenure) and compare with BoB’s rates to calculate potential savings.
Collect Documents:
Gather all required documents to ensure smooth verification.
Apply Online:
Visit Bank of Baroda’s official website (www.bankofbaroda.in) or Ambak’s dedicated BoB page.
Navigate to the “Home Loans” section and select “Balance Transfer.”
Complete the application form with personal, financial, and property details.
Upload scanned copies of documents and submit the application.
Note the application reference number for tracking.
Apply Offline:
Visit a Bank of Baroda branch or loan center in cities like Mumbai, Delhi, or Chennai.
Discuss terms with a loan officer and submit the application form with documents.
Verification and Property Evaluation:
BoB will verify your documents and conduct a legal and technical check of the property.
The existing lender will provide an NOC and transfer original property documents to BoB.
Loan Disbursement:
Upon approval (typically within 10–15 working days), BoB will repay the outstanding loan to your current lender.
You’ll begin repaying BoB as per the new loan terms.
Before transferring your home loan to Bank of Baroda, consider the following:
Cost-Benefit Analysis: Compare savings from lower interest rates against processing fees, legal charges, and any prepayment penalties from your existing lender. Use Ambak’s Bank of Baroda EMI Calculator to estimate net savings.
Credit Score Impact: Timely repayments with BoB can improve your CIBIL score; ensure consistent EMI payments.
Top-Up Loan Needs: BoB’s top-up loan (up to ₹50 lakh) can be used for home renovations or other expenses, subject to eligibility.
Tax Benefits: Post-transfer, claim deductions under Section 80C (up to ₹1.5 lakh on principal) and Section 24 (up to ₹2 lakh on interest).
Existing Lender Charges: Verify if your current lender imposes prepayment penalties, especially for fixed-rate loans.
Suppose Sanjay, a 40-year-old salaried professional in Bangalore, has a home loan of ₹50 lakh at 9.75% p.a. with 15 years remaining. His current EMI is ₹67,200. Transferring to BoB at 8.40% p.a. for the same tenure reduces his EMI to ₹61,600, saving ₹5,600 monthly. Over 15 years, this amounts to ₹10.08 lakh in savings, even after a 0.50% processing fee (₹25,000 + GST). Sanjay uses Ambak’s BoB EMI Calculator to confirm savings and applies through a BoB branch, securing approval in 12 days.
