BOB Housing Finance Ltd. is considered as a leader in the housing finance sector in India. It is a subsidiary of Bank of Baroda. This company was established by Bank of Baroda and National Housing Bank in 1990. However, in 2006 BOB Housing Finance Ltd became the wholly owned subsidiary of Bank of Baroda.
Mr. Nandan Srivastava, Retail Banking on behalf of Bank of Baroda home loans declared a cut of up to 50 basis points in the home lending rates. New loans which will be sanctioned from 1st September,2007 will fall under this deducted rate. According to Mr. Srivastava the deduction in rates is mainly to remain ahead of its peers and offer a competitive rate to its customers.
BOB Housing Finance Ltd. has declared the new rate structure :
In the fixed rate option the new rates are 11.25 ? 12.50 % for loan amount up to Rs 20 Lac for a tenure of 5 ? 15 years.. For a loan amount above Rs 20 Lac the rates will be 11.50 ? 12.75 %.
The revised rates for floating option are 10 ? 11 % for a tenure of 5 ? 25 years on a loan of Rs 20 Lacs.
For loans above Rs 20 Lac, the rates will be between 10.25 ? 11.50 %.
Bank of Baroda Housing offers Home Loans for :-
- Constructing houses by individuals.
- Repairing and renovating old houses.
- The company offers loans to individuals from Government bodies,housing boards etc. The maximum loan can be up to Rs 1 Crore. The company finances 85 % of the purchase price of the land.
- The company also offers loans to buy non-residential properties by individuals. The loan amount can be up to Rs 20 Lac. Professional above 3 years of experience can apply for the loan.
BOB Housing Finance Ltd. has significantly contributed in the home loan sector in India.