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Home Improvement Loan

Upgrade your residence with home renovation loans from Bank of Baroda.

Renovating your home can be a costly affair, but a home improvement loan can make your dream home a reality. Transform your home into a modern living space for you and your family with the help of our Baroda Home Improvement Loan. You can use the funds from this loan for not only repairs and renovation to your existing house/flat but also to purchase new furniture, fittings and furnishings, be it sofas or electronics.

Bank of Baroda’s Home Improvement Loans are affordable, with easy processing and minimal documentation. Take the first step towards transforming your home with our Home Improvement Loan. Apply now to get the best interest rates.

  • Benefits
  • Features
  • Eligibility
  • Interest rates & charges
  • Documentation
  • Terms & Conditions

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 maximum amount varies by location, income and repayment capacity of the borrower, going up to Rs. 1 crore in semi-urban and rural areas, and up to Rs. 10 crores in Mumbai. In other metro cities, the maximum amount on Home Improvement Loan is Rs. 5 crores.

36-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 36 months. The maximum tenure of Home Improvement Loan is 30 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.

  • Resident Indians
  • Non-resident Indians (NRIs) holding Indian passport or Persons of Indian Origin (PIOs) holding foreign passport or Overseas Citizens of India (OCI).

  • 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.

Rate of Interest:

BRLLR to BRLLR + 1.60% (as per risk rating of the applicant/s.)

Service Charges (Excluding GST) w.e.f. 20.06.2019:

Slab wise

Up to Rs. 50 lakhs

  • 0.50% of loan amount:
  • Minimum: Rs. 8,500 (Upfront)
  • Maximum: Rs. 15,000

Above Rs. 50 lakhs

  • 0.25% of loan amount:
  • Minimum: Rs. 8,500 (Upfront)
  • Maximum: Rs. 25,000

The above charges are unified processing charges which includes inspection, valuation and legal fees.

For staff members:

  • Actual charges for advocate/valuers/CERSAI/ITR verification (if any) only to be recovered.
  • The above charges are for all categories of borrowers under home loans.

Basic Documents required for Home Loan

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

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.

  1. 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.
    Should be employed/self-employed or having a business unit and staying abroad at least for 2 years.
  2. 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 –

  1. He at any time held Indian passport or
  2. 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
  3. 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
  1. A person registered as Overseas Citizen of India (OCI) under section 7 A of the Citizenship Act, 1955.
  2. As per the guidelines, an Overseas Citizens of India (OCI) has to be necessarily a Person of India Origin (PIO).
  3. 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.

  1. The close relatives of the applicant can be added as a co-applicant for higher eligibility.
  2. 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:
  • Mumbai: Rs. 10 crores
  • Other metros*: Rs. 5 crores
  • Urban areas: Rs. 3 crores
  • Semi-urban and rural: Rs. 1 crore

*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 30 years initially, including the maximum moratorium period of 36 months.
  • Maximum moratorium period shall be 36 months as under.
  • 18 month moratorium period for under construction houses and building up to 7th floor and thereafter 6 months additional moratorium per floor subject to a maximum moratorium of 36 months.

Repayment Capacity

Total deductions including proposed EMI should not exceed as follows -

Salaried Persons

  • Gross monthly income less than Rs. 20,000: 50%
  • Gross monthly income Rs. 20,000 and above but less than Rs. 50,000: 60%
  • Gross monthly income Rs. 50,000 and above but less than Rs. 2 lakhs: 65%
  • Gross monthly income Rs. 2 lakhs and above but less than Rs. 5 lakhs: 70%
  • Gross monthly income Rs. 5 lakhs and above: 75%


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

Margin Norms & Loan to Value (LTV) Ratio
Loan Amount Margin LTV Ratio
Loans up to Rs. 30 lakhs 10% 90%
Loans above Rs. 30 lakhs up to Rs. 75 lakhs 20% 80%
Loans above Rs. 75 lakhs 25% 75%

  • Minimum: Borrower - 21 years, Co-applicant - 18 years
  • Maximum: Maximum age can be considered up to 70 years*

  • 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.

  • Maximum period of loans shall be 30 years initially, including the maximum moratorium period of 36 months.
  • Maximum moratorium period shall be 36 months as under.
  • 18 month moratorium period for under construction houses and building up to 7th floor and thereafter 6 months additional moratorium per floor subject to a maximum moratorium of 36 months.
  • Loan to be repaid in Equated Monthly Instalments (EMI)
  • In case of farmers/agriculturists, repayment can be allowed in Half Yearly Instalments coinciding with harvesting/marketing of major crops produced.
  • Recovery of interest for the moratorium period Interest charged during the moratorium period is to be recovered as and when debited.

Pre-Closure Charges


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.

Frequently Asked Questions (FAQs) about

  • Can I avail of Home Loan from Bank of Baroda?

    Yes, you can avail a Home Loan from Bank of Baroda, if you plan to construct or purchase a house/flat or extend your existing house/flat and, you are

    • A minimum 21 years of age.
    • Employed or self-employed with regular income.
  • Who can be co-applicant?

    The proposed owners of the residential accommodation as per the agreement for sale, in respect of which financial assistance is sought, must be of the co-applicants. Usually joint applications are from husband-wife, father-son, mother-son, etc.

  • How much does Bank of Baroda lend?

    Loan amount is determined on the basis of the repaying capacity of the applicant(s). For calculating the repaying capacity, various factors are taken into consideration such as age, income, dependents, assets, liabilities, stability of occupation and continuity of income, savings, etc.

    The maximum loan would be Rs. 10 crores per unit to any individual applicant based on the area where property is proposed to be constructed/purchased. We will extend the loan up to 90% (for fresh houses/flat) of the cost of property under our housing loan scheme.

  • What is the average tenure of a home loan?

    We grant a term up to maximum of 30 years. The term for the loan will under no circumstances exceed the age of retirement or completion of 65 years of age, whichever is earlier.

  • Can I prepay the loan ahead of schedule?

    Yes, you have the option to prepay the loan ahead of schedule either in part or in full, from your own sources.

  • What is the mode of repayment?
    • Equated Monthly Instalment (EMI): It means a uniform lump sum amount, which includes repayment of a part of the principal amount and payment of interest, calculated on daily products basis.
    • Fixing the monthly/quarterly instalments on graduated basis is permitted of EMI as requested by customers.
  • What is the security for the loan?

    The security for the loan is equitable mortgage of the property to be financed.

  • Do you insist on LIC policy as additional collateral security?

    No, it is not mandatory.

  • What are the supporting documents required while applying for the loan?
    Common requirements for all applicants:
    1. Application form duly filled in (with photograph of all the applicant).
    2. Residence and age verification, which may be established from the PAN card, election ID, passport, drivers’ license, ration card, etc.
    3. Copy of approved plan and sanction letter from local civic authority.
    4. Copy of NA permission.
    5. One/two guarantor(s) form(s) and salary certificates. If the guarantor is in business, copies of I.T. returns or assessment orders for the last three years are required.
    6. Bank passbook of statements for the last two years.
    7. Latest salary slip/statement showing all deductions in case of employed applicants.
    8. Certified copies of balance sheets and profit and loss accounts, IT acknowledgments, advance tax challans (for both company/firm and personal account) for the last three years in case of self-employed applicants.
    9. Memorandum/Articles of Association for companies, partnership deeds for firms and a brief profile of your company/firm in case of self-employed applicants.

    Additional requirement

    In case of purchase from builder:

    1. Copy of agreement for sale.
    2. Copy of registration receipt.
    3. Copy of sanctioned plan & sanction letter of the competent authorities.
    4. Copy of NA permission/ULC order.
    5. Copies of receipts of payments already made.
    6. NOC from builders in our format.

    In case of direct allotment in a Co-operative Housing Society:

    1. Allotment letter.
    2. Share certificate.
    3. Society registration certificate.
    4. Copy of sale/lease deed in favour of the society.
    5. NOC from society in our format.
    6. Possession letter in original.

    In case of resale:

    1. Copy of all previous vendors’ agreements duly stamped and registered and the registration receipts (original to be given before disbursement).
    2. NOC from society/builder in our format.
    3. Original share certificate.

  • Do you have any housing loan product for NRIs?

    Yes. We have Housing Loan products for NRIs/PIOs. For details, please visit our website at housing loans to NRIs/PIOs.

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