BOB Personal Loan Interest Rate

Steps to Calculate Personal Loan EMI on BOB Portal

You can also calculate the Bank of Baroda personal loan EMI on the BOB official portal. Check the steps below to know your loan EMI:

1. Visit the Bank of Baroda official website and navigate to the ‘BOB Personal Loan’ section.
2. Simply adjust sliders for loan amount, interest rate, and tenure.
3. The EMI Calculator will generate your monthly installment amount.

You can explore different repayment scenarios to find an EMI that fits your budget.

EMI for BOB Bank Personal Loan

Consider your BOB Personal Loan interest rate at 12% and go though the EMI calculation for varied amounts for 1 to 5 years.

The interest rate used is a typical value from the range given to the salaried and self-employed individuals and is subject to change.

Comparison of Personal Loan Interest Rates

The table below compares personal loan interest rates between various banks and NBFCs, including the Bank of Baroda.

Factors Affecting BOB Bank Personal Loan Interest Rate

The key factors that affect Bank of Baroda's personal loan interest rates are:

• Credit Score: A higher CIBIL score can help secure lower interest rates.
• Income Level: Applicants with higher and stable incomes are seen as lower risk.
• Employment Type: Salaried individuals, especially government employees, often get better interest rates.
• Loan Amount & Tenure: Larger amounts or longer tenures may influence the applicable rate.
• Relationship with the Bank: Existing customers may receive preferential rates.
• Repayment Capacity: A strong repayment history positively impacts rate offerings.
• Loan Category: The type of personal loan scheme chosen may affect the rate.

Impact of Credit Score on Personal Loan Interest Rates

A credit score reflects your creditworthiness and repayment history, which helps lenders determine whether you qualify for instant personal loans.

Here’s what you need to know about how your credit score impacts your personal loan interest rates:

• High credit score (750 and above): This leads to low interest rates and reduced risk.
• Moderate credit score (650-749): It results in slightly higher interest rates.
• Low credit score (below 650): It can increase your interest rates significantly, result in loan rejection, and greater risk.

Impact of Repo Rate Cut on Loan Interest Rate

Let’s first understand the Repo Rate. It is the rate at which the RBI lends money to banks.

If the repo rate is low, banks can borrow money at affordable interest rates. Whereas for high repo rates, the interest rate also increases for the bank.

​The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points, bringing it down to 6%.

In the case of Bank of Baroda, the RBI’s repo rate cut was applied to its retail and MSME customers by reducing its external benchmark-linked lending rates by 25 basis points.

Here’s how it impacts the loan interest rates:

• The interest rates on floating rate loans may be lower, which also reduces the EMIs.
• The interest rates on fixed-rate loans will remain unaffected, and therefore, the EMIs will remain the same.

Here are the top benefits of a repo rate cut:

• Reduced interest rates make loans more affordable.
• Lower interest rates result in lower monthly payments.
• Lower EMIs increase eligibility for higher loan amounts.

Banks usually keep a minimum interest rate on loans based on the borrowing cost, and it is referred to as the MCLR or Marginal Cost of Funds-based Lending Rate. It is used to set the interest rates for personal loans, home loans, and auto loans.

With the RBI repo rate update, the Bank of Baroda Overnight MCLR is 8.15%, and its One-Year MCLR is 9%.

Eligibility for BOB Personal Loan

To apply for the Bank of Baroda Personal Loan, you need to meet certain criteria. Eligible applicants include:

• Individuals with a minimum age of 21 years.
• Salaried employees of government bodies, public sector units, MNCs, public limited companies, and educational institutions with at least 1 year of continuous service.
• Employees of private companies, trusts, or LLPs with at least 1 year of continuous service.
• Insurance agents with a minimum of 2 years in business.
• Self-employed professionals (like doctors, engineers, consultants, etc.) and business owners with at least 1 year of stable business.

Note that staff members, NRI/PIO, and co-applicants are not eligible for a BOB Personal Loan.