Comparing Bank of Baroda and SBI before taking a home loan is beneficial. Bank of Baroda is offering home loans at an initial interest rate of 7.45%, and SBI at 7.50%. The processing fee is 0.50% at Bank of Baroda and 0.35% at SBI. Customers with a CIBIL score of 800 or more can get easy home loans from both banks.
Processing Fee: Both Bank of Baroda and SBI, being public sector banks, are offering attractive interest rates and an easy process for home loans. Bank of Baroda's initial interest rate is 7.45% and processing fee is 0.50%, while SBI is offering loans at an interest rate of 7.50% and a processing fee of 0.35%. Both banks are providing floating rate loans for a tenure of up to 30 years and do not charge pre-payment or foreclosure fees. The initial rate loans are mainly available to customers with a CIBIL score of 800 or more.
Bank of Baroda Home Loan
Bank of Baroda is currently offering home loans at an initial interest rate of 7.45 percent. This is considered the bank's most affordable rate. Bank of Baroda offers various types of home loans, and based on your needs and eligibility, it is determined which home loan is right for you.
Bank of Baroda's processing fee is up to 0.50 percent. This amount can be a minimum of Rs 8,500 and a maximum of Rs 25,000. It is noteworthy that the bank does not charge pre-payment or foreclosure fees. The loan tenure can be up to a maximum of 30 years. The bank is offering home loans at a floating rate. The maximum interest rate can go up to 10.20 percent.
SBI Home Loan
State Bank of India (SBI) has an initial interest rate of 7.50 percent. This is also considered one of the most affordable rates for home loans. SBI's home loan processing charge starts from 0.35 percent. There are no pre-payment or foreclosure charges here either.
According to SBI's website, changes in the repo rate will also lead to changes in home loan interest rates. If the repo rate increases, the home loan interest rate will also increase. SBI also offers home loans at a floating rate, and EMI facility is available for up to a maximum of 30 years.
Difference in Interest Rate and Processing Fee
Both interest rate and processing fees are important parameters. Looking at the initial interest rates, Bank of Baroda's home loan appears slightly cheaper compared to SBI. Similarly, Bank of Baroda also offers a slight advantage in processing fees. Therefore, if you are looking for a cheaper loan, Bank of Baroda might be a better option.
Will You Get a Home Loan?
Home loan eligibility depends on CIBIL score, age, and income. If your CIBIL score is 800 or higher, you may get a home loan at the bank's initial rate. With a lower score, you might get a loan at a slightly higher interest rate.
Both Bank of Baroda and SBI are public sector banks and provide reliable services. However, if you are looking for a cheaper loan keeping interest rates and processing fees in mind, Bank of Baroda appears to have a slight edge.
Other Loan Benefits
Both banks offer a floating rate facility, meaning the interest rate can go up or down according to market conditions. Additionally, with no pre-payment or foreclosure charges, you can repay the loan whenever needed. This facility is a significant advantage for customers.
Before taking a home loan, it is essential to assess your budget and CIBIL score. Choosing the right bank and the right loan can help you save interest in the long run and benefit from convenient EMI facilities.
