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Bank of Baroda Home Loan Advantage/Overdraft/Maxgain

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I have a home loan from BoB - Baroda Premium Home Loan Advantage, which is basically an overdraft HL like SBI Maxgain, linked to a savings account and the interest is charged only on the reduced principal adjusted after the balance in the linked savings account.

For fellow people who have same HL, how do you track whether the interest charged is correct or not? Is there any excel/google sheet where we manually enter the details and it should give us the principal amount, interest amount, tenure etc etc.
The amortization schedule generated from the netbanking shows the default one at the time of disbursal and not account the prepayments - basically it's static and not dynamic.
 
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@sainath769 Yes, all this is true. It’s very clearly written on their website, so the manager is not taking you for a ride.

Baroda Max Savings Home Loan - Flexible Interest Rate Options | Bank of Baroda

Get easy home loans from Bank of Baroda's Baroda Max Savings scheme. Link your savings account with your home loan and enjoy reduced interest rates. Deposit all your savings to maximize benefits! Apply now
www.bankofbaroda.in www.bankofbaroda.in

And from the website the premium for loans above 75L is 0.25%. If you are getting with a 0.2% premium that’s great.
 
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sainath769 said:
Ok ,@varkey thanks for the endpoint of website URL .If not "Baroda Max Savings Home Loan" . what is better account type i can Select from Bank of baroda?
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If you want an overdraft type loan product, I don't think there is any other option. You can look at Bank of India if you want a similar product, I think the RoI remains the same until 2 crore, however, their lowest RoI is 8.3% for cibil score above 825.


I personally find, BoB best for this type of product.
 
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Hello everyone,

I am exploring for balance transfer of HL from HDFC (8.2%) to a OD linked HL with SBI/BOB/BOI/Others.
Most of the banks have a higher rate. BOB offers 8.4 and BOI offers 8.35 (8.15 with cibil > 825, mine is 805).
Plus there are processing charges & stamp duty etc. which comes to ~40K.

BOB said, they offered it at 8.2 till 31st March but they have increased in new FY.
I had following questions:
  1. Should I go for Balance transfer in first place? Are there any hidden clauses? I can move my emergency fund/FDs to OD and on paper it looks very good.
  2. Will the banks bring down the rate in later months? Like BOB said they offered 8.2 till 31st March perhaps due to FY end.
  3. Even if I go with any of banks with a said rate of 8.4, do they increase/decrease in accordance with RBI repo rates? I see people bashing HDFC, but after merger of HDFC and HDFC bank, they seem to follow RBI guidelines wrt rates. My fear is they offer me 8.4 and then increase it in few months.
  4. If i go with 8.4, would i be able to negotiate a better rate in later months? I did that with HDFC few years back but that time they were not repo linked with RBI.
Thanks!
 
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@CcMaverick

What's the loan amount?

1. No hidden clauses, but you would need to calculate if the transfer charges and increase in RoI makes sense for you.
2. I think you can request for rate revision, but there would be a processing fee as the bank would be changing its margin/spread. If there is a Repo rate change, then the rate gets automatically adjusted, nothing needs to be done.
3. Yes, its automatic for any repo rate change.
4. It's possible yes. The current lowest rate as per BoB's website is 8.15%, now for an OD loan of above 75L, there is a 0.25% premium, which makes it 8.4%. If your loan amount is less than 75L, I think you should get a better rate. There is a 0.05% premium if you do not opt for a credit linked insurance policy, it doesn't make much sense, so 8.2% should be possible from BoB and 800+ Cibil.

I personally have the BoB OD HL, and it definitely is beneficial, I park our emergency fund in this account and any short term surplus funds. Have saved a lot of money which would have otherwise been paid as interest.
 
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varkey said:
I personally have the BoB OD HL, and it definitely is beneficial, I park our emergency fund in this account and any short term surplus funds. Have saved a lot of money which would have otherwise been paid as interest.
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That's great. I am in banglore and have property in Ahmedabad.
Banglore BOB branch said 8.2 and Ahmedabad guy said 8.4. It was 8.2 until 31st march, but its revised to 8.4 now. Got same response from one another branch in Banglore.

And yeah, the loan amount is < 75L & cibil 805, so I guess 8.2 should be possible without insurance, but they are not offering it 😏
 
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CcMaverick said:
That's great. I am in banglore and have property in Ahmedabad.
Banglore BOB branch said 8.2 and Ahmedabad guy said 8.4. It was 8.2 until 31st march, but its revised to 8.4 now. Got same response from one another branch in Banglore.

And yeah, the loan amount is < 75L & cibil 805, so I guess 8.2 should be possible without insurance, but they are not offering it 😏
Click to expand...
Wait for a few days. There's high chance of another reduction in repo rate.
 
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varkey said:
@CcMaverick Oh that's interesting. I'd have expected the website to be accurate.

The 8.4% that was quoted, is it with the risk premium? Looks like the main interest rate page has the lowest rate updated to 8.4% - https://www.bankofbaroda.in/interest-rate-and-service-charges/retail-loans-interest-rates
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Yeah! I think thier web pages are outdated except the one you shared. Great find! Would be better to track it here instead of actual product page where it’s still 8.15
 
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