05 July 2011
Benefits of Bank of Baroda Home Loans
The Bank of Baroda Home loans are an easy way to apply for a home loan and purchase your dream home. Since they have a well informative website which allows the borrower to get information right from their home it has become very easy and convenient to apply for home loans. Let us consider some of the benefits of Bank of Baroda Home Loans.
Every borrower is worried whether they can get their income tax deducted on this amount. Here they offer provisions for this; interest on loan up to 1.5 lakh Rupees per annum is exempt from income tax. Since there are many other banks also providing different attractive offers to the customers of home loans even the Bank of Baroda offers free credit cards to their customers which is free for first year and the borrower can avail a loan of credit of up to 2 lakh and above. The complimentary card’ Paras’ card is an attractive offer made by the bank to encourage customers to avail their home loans.
As other banks even here there are certain criteria for approval of Bank of Baroda home loans. Age, qualifications, identity proofs and residence proofs are the general documents which every bank will enquire about before proceeding with your application of home loan. When the borrower has many dependents then the bank will consider the members and their qualifications as well as the incoming salary of every family member. Not very sure whether they require any guarantors for approval of home loan, but they have a provision for fore closure of loans along with a prepayment fees. In such a case where the borrower needs to close the home loan they have to pay no prepayment charges if the amount has been given by their own source. If they avail another loan from a different bank or private lender then they have to pay a prepayment charge of 0.5% for every remaining year of the loan tenure.
What is free is always tempting but consider all aspects before selecting any type of home loan. The Bank of Baroda offers free property and personal accidental insurance. Even this amount is helpful since with other lenders you may have to do the insurance for your property on your own and this too comes up to a substantial amount considering your crunch for finances in the beginning of a new home loan and purchasing a new home.
Since the Bank of Baroda home loan has the option of a longer loan repayment tenure, 25 years, it is good for salaried class as they have regular incoming money as salary which goes on increasing with time. It is also understood that the bank will offer loan using floating interest option considering the inflation and rising costs of materials. The borrower if from a salaried class and is from age group 25 to 35 years is the best client for any lender since the age of retirement is officially 65 years the lender can have the guarantee of the loan being repaid within the working years of the borrower.
The fore closure fees may be up to 2% when you borrower from another source which is on the higher side. So the Bank does not encourage prepayment since they will miss out on the amount of interest earned on the home loans by borrowers. And also the age group of younger clients within the income group of 20,000 or more every month are much preferred and you have better chances of your home loan getting approved faster.