Join WhatsAppBOB Home Loan: For many of us, buying a house is not just a financial decision, it’s an emotional milestone. The comfort of your own walls, the sense of security, the pride of saying this is mine it’s priceless. But let’s be honest, very few people can afford to pay the full amount upfront. That’s where a home loan from Bank of Baroda (BOB) steps in. And if you’re considering borrowing ₹40 lakh for 20 years, the first thing that probably runs through your mind is, “How much EMI will I be paying each month? And what about processing fees?” Let’s figure this out together.
Interest Rate and Loan Details
Currently, Bank of Baroda offers home loans at interest rates starting from 8.40% per annum, and it can go up to around 9.40%, depending on your credit score, income stability, and profile. With a 20-year repayment period (240 months), the EMI is spread out, making it lighter month by month, though it does increase the total interest outgo.
EMI Calculation on ₹40 Lakh Loan
Here’s a simple calculation showing how much you’ll actually pay, based on different interest rates:
| Loan Amount | Interest Rate | Tenure | Monthly EMI | Total Interest | Total Repayment |
|---|---|---|---|---|---|
| ₹40,00,000 | 8.40% | 20 Years | ₹34,422 | ₹42,61,280 | ₹82,61,280 |
| ₹40,00,000 | 9.00% | 20 Years | ₹35,989 | ₹46,37,360 | ₹86,37,360 |
| ₹40,00,000 | 9.40% | 20 Years | ₹36,987 | ₹48,77,040 | ₹88,77,040 |
So, roughly speaking, your EMI will fall between ₹34,400 and ₹37,000 per month. It sounds manageable at first glance, but when you stretch it over two decades, the total repayment almost doubles the loan amount. That’s the power of interest — and also the reason why careful planning is a must.
Processing Fees and Other Costs
BOB charges a processing fee between 0.5% and 0.75% of the loan amount, subject to a cap (usually up to ₹25,000). On a ₹40 lakh loan, that works out to around ₹20,000–₹25,000, plus GST.
Apart from this, you should also be ready for small charges like legal verification, documentation, and insurance. These don’t add up to a huge amount but are worth keeping in mind while budgeting.
Balancing EMI with Your Income
Now picture this: paying around ₹35,000 every month, without fail, for the next 20 years. Can your salary handle that comfortably? Banks usually check your FOIR (Fixed Obligation to Income Ratio), meaning they won’t let your EMIs eat up more than 40–50% of your monthly income. That’s why a steady income above ₹70,000–₹80,000 per month is often preferred for such big loans.
Conclusion
Taking a ₹40 lakh home loan from Bank of Baroda for 20 years means paying an EMI of ₹34,000–₹37,000 every month. The total repayment goes up to nearly ₹88 lakh, including interest. Add to that a processing fee of ₹20,000–₹25,000, and you have the complete cost picture. A home loan is a big step, but with careful planning, it can turn your dream of owning a house into a beautiful reality.
Disclaimer: This article is for educational and general awareness purposes only. Loan eligibility, interest rates, and EMIs vary depending on Bank of Baroda’s official policies, your credit score, and financial background. Please verify all details from the official BOB website or branch before making any final decision.