Further, it is assumed that 40% to 60% of house hold income is required for sustenance depending upon the total monthly income and rest can be various other purposes including repayment of this loan accordingly loan eligibility is also restricted as per repayment capacity.

Ans 2. Maximum loan amount under Home loan product is Rs.100 lac, However, we provide maximum finance from  75% to 85% of the project cost with in over all cap of Rs.100 lac depending upon the purpose i.e. reimbursement of construction cost from own sources, outright purchase of flat, readymade house .

Ans 3. Fixed Rate option is not available for Home Loans since 01.07.2010

Ans 4.With this kind of Home loan, the interest rate keeps changing and it is linked with Bank’s Benchmark Prime Lending Rate (Base Rate) and moves as per movement in Base Rate. However, a clause “minimum applicable interest rate” is inserted so as to restrict the applicable interest rate not to go below a particular level.

Ans 6. Home Loans can be repaid in maximum 25 years (floating rate option). However, present age of borrower plus repayment period should not be beyond retirement age in case of salaried persons and beyond 65 years of age in case of others.

Ans 7. Rate of interest is determined depending on period of repayment and amount of loan.

Ans 8.In case the loan is sanctioned for construction of house, maximum period of 18 months or 1 month after completion of house / taking possession of flat / house, whichever is earlier  is allowed as moratorium period when EMI is not required to be paid and only servicing of interest, as & when applied, is required. In case of loan granted for outright purchase of readymade house, EMI is to be paid from the next month of sanction of loan.

Ans 9.No, only interest servicing on monthly basis is required.

Ans 10.Borrower is required to pay one time unified processing charges, Advocate’s fee for legal opinion and search of title and valuation charges of the property to be mortgaged .

Ans 11.No, there is no prepayment penalty /charges are levied for prepayment of Home Loans if the payment is made from own sources, but in case of takeover  of loan by other bank/FIs, a charge of max. 2% is levied.

Ans 12.Yes, Fixed rates loans can be converted into Floating rate loans at the request of borrower subject to one time payment of 0.5% charges to the maximum of 2% of balance outstanding. If after conversion of interest rate option, the loan is taken over by other Bank/FIs , the prepayment charges @3% will be levied.

Ans 13.Yes, top up loans by way of Home Improvement Loan and Additional Assured Advance (AAA) are available to the home loan borrowers.

Ans 14.Yes, home loan availed from other Banks/HFCs can be taken over by Bank of Baroda subject to certain conditions e.g Account should be standard and there are no overdues in the account and the existing Banker gives an undertaking that they will handover all the securities charged to them to secure the loan in question, directly to Bank of Baroda.

Ans 15.The proposed borrower can approach any branch of Bank of Baroda or Retail Loan Factory convenient to him. He can also apply on line for a Home Loan at Bank’s website.

Ans 16.Yes. Loan can be considered in the joint name of wife and husband where wife will be main borrower and husband will be a co-borrower.

Ans 17.Generally, after submission of Home Loan application along with complete documents, the home loan is sanctioned in 6 days.

Ans 18.As soon as the loan is sanctioned, the borrower is provided with a sanction letter detailing all the terms of sanction and he is required to convey his acceptance to terms of sanction. After his acceptance he is required to execute the necessary documents as per terms of sanction and as soon as the terms of sanctions are complied with, the loan is disbursed.In case the loan is granted for outright purchase of readymade house /flat , the loan is disbursed by way of issue of Bankers/Cheque /Demand draft in favour of seller whereas in case of loan granted for construction of house, phase wise disbursement is made by way of reimbursement against the bill /vouchers submitted by the borrower alongwith architects certification and verification of construction by bank officials.Last instalment is disbursed after submission of completion certificate of house.