Baroda Home Improvement Loan for NRI/PIOs

Non-Resident Indians (NRIs) holding Indian passport or persons of Indian origin (PIOs) holding foreign passport or overseas citizens of India (OCI).

Purpose

• For repairs/renovation/improvement of existing house/flat.
• Purchase of furniture/fixture/furnishing/other gadgets such as fans, geysers, air conditioners, water filters, air purifiers, heaters, desert coolers, etc.

Target Group

Non-Resident Indians (NRIs) holding Indian passport or persons of Indian origin (PIOs) holding foreign passport or overseas citizens of India (OCI).

Eligibility of Borrower(s)

Individuals singly or jointly.

HUFs are not eligible.

NRI/PIO/OCI

• Applicant/co-applicants, whose income are considered for eligibility, should be having a regular job abroad in a reputed Indian/foreign company, organization or government department holding a valid job contract/work permit for the minimum past 2 years. OR Should be employed/self-employed or having a business unit and staying abroad at least for 2 years.
• Applicant/co-applicants, whose income is considered for eligibility, should have minimum gross annual income equivalent to Rs. 5 lakhs per annum.
• If the applicant/co-applicants, whose income is considering for eligibility includes NRI, minimum gross annual income of Rs. 5 lakhs (income of applicant/co-applicant together) can be considered for this criteria.

Person of Indian Origin (PIO) is specified as under:

A citizen of any country other than Bangladesh, Pakistan, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan if:-

• He at any time held Indian passport or
• He or either of his parents or any of his grandparents was a citizen of India by virtue of the constitution of India of the Citizenship Act, 1955, or
• The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above.

Overseas Citizens of India (OCI) is specified as under:

• A person registered as overseas citizen of India (OCI) under section 7 A of the Citizenship Act, 1955.
• As per the guidelines, an overseas citizens of India (OCI) has to be necessarily a person of Indian Origin (PIO).
• A foreign national, who was eligible to become citizen of India on 26/01/1950 or was a citizen of India on or at any time after 26/01/1950 or belonged to a territory that became part of India after 15/08/1947 and his/her children and grandchildren, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as overseas citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI.

Co-Applicants

The close relatives of the applicant can be added as a co-applicant for higher eligibility.

If the applicant wants to add any person who is not a close relative as a co-applicant, same can be considered only if he/she are the joint owner of property.

List of Close Relatives

Spouse, father, mother (including step mother), son (including step son), son’s wife, daughter (including step daughter), daughter’s husband, brother/ sister (including step brother/sister), brother’s wife, sister (including step sister) of spouse, sister’s husband, brother (including step brother) of spouse.

Limit: Maximum Limit

Mumbai: Rs. 10 crores

Other Metros*: Rs. 5 crores

Urban Areas: Rs. 3 crores

Semi-urban and Rural: Rs. 1 crore

Subject to income criteria and repayment capacity of the applicant/co-applicant(s) and LTV/Margin norms.

Repayment Period

• Maximum period of loans shall be 30 years initially, including the maximum moratorium period of 36 months.
• Maximum moratorium period shall be 36 months as under.
• 18-month moratorium period for under construction houses and building up to 7th Floor and thereafter 6 months’ additional moratorium per floor subject to a maximum moratorium of 36 months.

Repayment Capacity

Total deductions including proposed EMI should not exceed as follows:

Salaried Persons

GMI less than Rs. 20,000: 50%

GMI Rs. 20,000 and above but less than Rs. 50,000: 60%

GMI Rs. 50,000 and above but less than Rs. 2 lakhs: 65%

GMI Rs. 2 lakhs and above but less than Rs. 5 lakhs: 70%

GMI Rs. 5 lakhs and above: 75%

Others

Average Gross Annual Income (for last 2 years) up to Rs. 6 lakhs: 70%

Average Gross Annual Income (for last 2 years) more than Rs. 6 lakhs: 80%

Margin Norms & Loan to Value (LTV) Ratio

Age

Minimum: Borrower - 21 years, Co-applicant - 18 years

Maximum: Maximum age can be considered up to 70 years*

Security

• Mortgage of the property constructed/purchased or
• If mortgage is not feasible, Bank at its discretion can accept security in the form of insurance policies, government promissory notes, shares and debentures, gold ornaments, etc.

Repayment

• Maximum period of loans shall be 30 years initially, including the maximum moratorium period of 36 months.
• Maximum moratorium period shall be 36 months as under.
• 18-month moratorium period for under construction houses and building up to 7th Floor and thereafter 6 months’ additional moratorium per floor subject to a maximum moratorium of 36 months.
• Loan to be repaid in equated monthly installments (EMI).
• In case of farmers/agriculturists, repayment can be allowed in half yearly installments coinciding with harvesting/marketing of major crops produced.
• Recovery of interest for the moratorium period. Interest charged during the moratorium period is to be recovered as and when debited.

Pre Closure Charges

Nil

Rate of Interest

Fixed Rate Option: Stands withdrawn w.e.f. 01/07/2010

Floating Rate: Interest on the loan will be charged at prevailing floating rate on a daily reducing balance at monthly rests. The rate of interest is linked to one year MCLR of the Bank, shall be reset on annual basis. Rate of interest will be decided with reference to CIBIL bureau score* of the applicant/co-applicants (ranging from minimum of I year MCLR to maximum of 1 year MCLR +1%) subject to revision by the Bank from time to time.

To know the latest rate of interest Click here

Pre Closure Charges

The unified processing charges include

• Processing charges
• Documentation charges
• Document verification/vetting charges
• Pre-sanction inspection (contact point verification - CPV) charges
• One-time post inspection charges
• Advocate charges for legal opinion
• Valuer charges for valuation
• Bureau report charges
• CERSAI charges
• ITR verification charges

To know the processing charges, Click here

Group Credit Life Insurance Cover

Bank of Baroda is having tie-up arrangements with M/s. India First Life Insurance Co. for providing life insurance cover to our home loan borrowers.

This is an optional scheme of life insurance and is at the cost of borrower which may be funded by the Bank at the time of sanction and is recoverable with the EMIs of the loan.

The salient Features of the Group Credit Life Policy offered by M/s. India FirstLife Insurance Co. as under:

• It is an optional scheme for the benefit of home loan borrowers and the borrower will be given an option by the branches to choose the insurance provider between India FirstLife Insurance as per his choice.
• It is a group insurance scheme, which protects against unforeseen consequences of death of borrower.
• Family of the borrower is not required to repay the loan to the extent of claim settled amount, in case of death of the borrower.
• Outstanding cover amount due, will be paid by insurance provider as per cover schedule.
• Slippage of the account into NPA category due to death of the borrower can be avoided.
• Life cover is available against payment of one time premium and amount of premium is based on the age of the borrower, amount of loan, Interest rate and tenure of the loan.
• Premium amount for obtaining the cover can be financed as part of loan at the request of borrower and accordingly EMI will be calculated. But, in case of Home Loans, guidelines regarding compliance of LTV Ratio must be strictly ensured.
• Premium amount may be part of the loan as per total eligibility of the borrower may be funded by the Bank at the time of sanction and is recoverable with the EMIs of the loan.
• In case of foreclosure of loan, certain portion of premium paid shall be refunded by the insurance provider.