Home Improvement Loan

Home Improvement Loan : Features

Our home improvement loan is customer-friendly, with speedy processing and minimal documentation.

Who can apply?

Resident and non-resident individuals are eligible for our Home Improvement Loan. They can be salaried or self-employed. However, HUFs cannot apply for this loan.

How much can you get?

The loan can be availed up to a maximum limit of Rs.50.00 laks subject to fulfilment of eligibilty.

6-month EMI holiday:

Home Improvement Loan allows for a moratorium period, during which you are not required to make any payment in the form of EMIs. The maximum moratorium period on this loan is 6 months. The maximum tenure of Home Improvement Loan is 15 years, including the moratorium period.

Floating rates:

We offer a floating interest rate on Home Improvement Loan. This interest rate is linked to Baroda Repo Linked Lending Rate (BRLLR) of the bank and is reset monthly.

Home Improvement Loan - Insurance of the House:

House mortgaged with the Bank is to be insured. Insurance modalities are similar to the Home Loan scheme.

Home Improvement Loan : Eligibility

• Resident Indians
• 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/fixtures/furnishing/other gadgets such as fans, geysers, air-conditioners, water filters, air purifiers, heaters, desert coolers, etc.

Home Improvement Loan : Interest rates & charges

* Note:

• Rate of Interest is dependent upon Loan limit and CIBIL Score of the applicant/s.
• Risk Premium of 0.05% will be levied for customers not obtaining credit insurance cover

Processing Charges :

1. For Takeover leads received through Non-DSA (Digital or Non-digital) –

   NIL, subject to Login Fee of Rs.1,500/- which is to be refunded on first disbursement.

2. For Home Loan in approved projects (Digital or Non-digital):

   100% waiver in Processing charges, subject to recovery of out-of-pocket expenses of ₹3,500.00 + GST (Per Property)./p>

3. Under Home Loan Scheme for Central/State Govt/PSUs employees – for non-DSA (including leads generated by DST) –

   NIL, subject to Login Fee of Rs.1,500/- which is to be refunded on first disbursement.

4. For Other Home Loan lead sourced through Non-Digital Channel:

   100% waiver in Processing charges, subject to recovery of out-of-pocket expenses of ₹10,000.00 + GST (Per Property)

5. For Home Loan leads sourced through Digital Channel:

   100% waiver in Processing charges, subject to recovery of out-of-pocket expenses of ₹5,000.00 + GST (Per Property) to ₹8,500.00 + GST (conditions apply)

Home Improvement Loan : Documents Required

Basic Documents required for Home Loan

To check out the documents required for Home Improvement Loan, click here.

Home Improvement Loan : Most Important Terms and Conditions (MITC)

Target Group

• Resident Indians
• Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport or Overseas Citizens of India (OCI).
• Staff members (availing under Public scheme)

Eligibility of Borrower(s)

• Individuals - singly or jointly.
• HUFs are not eligible.

Resident Indian

• Applicant/co-applicant(s), wwhose income are considered for eligibility, should be employed/engaged in business/profession for a minimum period of 1 year (for salaried) and/or 2 years (for non-salaried).
• Break in service, if any, can be allowed up to a maximum period of 3 months.

NRI/PIO/OCI

• Applicant/co-applicant(s), 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-applicant(s), whose income is considered for eligibility, should have minimum gross annual income equivalent to Rs. 5 lakhs per annum. If the applicant/co-applicant(s), whose income is considered for eligibility includes NRI, a 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/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 India 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 this 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, the same can be considered only if he/she is 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 stepbrother/sister), brother’s wife, sister (including step sister) of spouse, sister’s husband, brother (including step brother) of spouse.

Maximum Limit:

• The loan can be availed up to a maximum limit of Rs.50.00 laks subject to fulfilment of eligibilty.

*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 15 years initially, including the maximum moratorium period of 6 months.

Repayment Capacity

Total deductions including proposed EMI should not exceed as follows -

Salaried Persons

• Net Monthly income less than Rs.25,000: 40%
• Net monthly income Rs.25,000 and above but less than Rs.50,000: 60%
• Net monthly income Rs.50,000 and above but less than Rs.1.00 lakhs: 65%
• Net monthly income Rs.1.00 lakhs and above but less than Rs.2.00 lakhs: 70%
• Net monthly income Rs.2.00 lakhs and above: 75%

Others

• Average Net Annual Income (for last 2 years) up to Rs.6 lakhs: 70%
• Average Net Annual Income (for last 2 years) more than Rs.6 lakhs: 80%

Margin Norms & Loan to Value (LTV) Ratio

25 % of Project Cost which includes:-

• estimated cost of repairing / renovation
• cost of furniture / fixture / furnishing / other gadgets

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, the 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 15 years initially, including the maximum moratorium period of 6 months.
• Loan to be repaid in Equated Monthly Instalments (EMI)
• 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

Group Credit Life Insurance Cover

Bank of Baroda has tie-up arrangements with M/s. IndiaFirst 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. IndiaFirst Life 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 IndiaFirst Life 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.

Note: The Bank may use the services of agents in sales/marketing etc of the product.