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Buying your own home is one of the biggest milestones in life. But before applying for a home loan, comparing interest rates, processing charges, and loan terms is crucial. If you’re confused between State Bank of India (SBI) and Bank of Baroda (BoB) — two of India’s top public sector banks — here’s a detailed comparison to help you decide which one offers the better deal.

Home Loan from Bank of Baroda (BoB)

Bank of Baroda currently offers floating-rate home loans starting at an interest rate of 7.45% per annum.

• Processing Fee: 0.50% of the loan amount (minimum ₹8,500 and maximum ₹25,000)

• Prepayment / Foreclosure Charges: Nil

• Maximum Tenure: Up to 30 years

• Interest Rate Range: 7.45% to 10.20%

The loan rate is linked to the Repo Rate, meaning any change in RBI’s repo rate will directly impact your EMI. Borrowers with a high credit score (especially above 800) are more likely to get the lowest interest rates.

Home Loan from State Bank of India (SBI)

SBI, India’s largest lender, offers home loans at a floating rate starting from 7.50% per annum.

• Processing Fee: 0.35% of the loan amount

• Prepayment / Foreclosure Charges: Nil

• Maximum Tenure: Up to 30 years

• Interest Rate Type: Repo Rate Linked (subject to market movement)

SBI also provides several customized home loan variants such as Regular Home Loan, Flexipay, NRI Home Loan, and Privilege Schemes for government employees and defense personnel.

Comparison: Bank of Baroda vs SBI Home Loan

Which Home Loan Is Cheaper?

When comparing the two, Bank of Baroda’s home loan currently appears slightly cheaper than SBI’s. The difference in the starting interest rate (7.45% vs 7.50%), combined with flexible processing fee slabs, gives BoB a small edge.

For borrowers with a strong credit history and stable income, BoB’s lower base rate can result in meaningful savings over a long tenure. However, both banks offer transparent, repo-linked floating rates, which means your EMIs may fluctuate with changes in RBI policy rates.

Final Verdict

• Choose Bank of Baroda if you’re looking for a marginally lower starting interest rate and flexible processing fee caps.

• Choose SBI if you prefer a wider network, faster processing for salaried customers, or want access to special borrower schemes.

Ultimately, the best choice depends on your credit score, eligibility, income profile, and property type. Before making a decision, always compare the total cost of the loan, including insurance, stamp duty, and other incidental charges.

Disclaimer:

The comparison above is for informational purposes only. Interest rates and fees are subject to change at the bank’s discretion. Always consult your financial advisor or visit the official bank websites before applying for a home loan.