Bank of Baroda Loan Against Property

A loan against property, also called a mortgage loan, is a secured borrowing arrangement in which an applicant pledges an immovable property they own as collateral to raise funds, and repays the borrowed amount over an agreed term while retaining use of the property. Because the loan is backed by an asset, it commonly lets borrowers access a larger sum than an unsecured facility.

People typically turn to this type of loan to unlock the value of property that would otherwise sit idle, funding a wide range of personal or business needs, though it is not meant for financial speculation and is not available to real estate developers, property dealers or brokers. Bank of Baroda, a public sector bank founded in 1908, structures its Baroda Mortgage Loan as a combination of a loan and an overdraft facility with flexible repayment options against the security of the applicant's property.

The bank emphasises the ability to draw the facility either as a demand loan or as an overdraft, the option to deposit surplus money to reduce the interest burden, and flexibility to withdraw funds as required. The loan can be availed against residential, commercial or industrial property. Eligibility and the final sanctioned amount depend on factors including the applicant's income profile and the value the bank accepts for the pledged property, and any approval remains subject to the bank's verification, legal opinion and credit assessment; sanction is not guaranteed.

At 9%, Bank of Baroda has one of the lowest starting rates of the 18 lenders we track for loans against property.