BOB Loan Comparison: Should you take a home loan to buy a house or a personal loan for personal expenses? Know the difference between BOB Home Loan and Personal Loan, interest rates and total cost.
Bank of Baroda: Both offer loans but the usage is different
Bank of Baroda (BOB) offers two major types of loans to its customers – Home Loan and Personal Loan . Though both the loan facilities are provided by the bank, there is a lot of difference in their purpose, interest rate, tenure and eligibility. If you are wondering which loan is cheaper and beneficial, then this comparison can prove to be helpful for you.
BOB Home Loan: Interest Rate and Objective
Bank of Baroda’s home loan is especially given for buying a flat, plot or house. The specialty of this loan is its low interest rate , which starts from 8.40% (as of 2025). The loan amount can range from ₹ 5 lakh to ₹ 5 crore and the tenure goes up to a maximum of 30 years. The bank keeps the processing fee low for this and women also get additional concessions. Apart from this, you can also get tax exemption on this loan , which makes it even cheaper.
BOB Personal Loan: With freedom comes freedom in spending
Bank of Baroda’s personal loan is given without any collateral, that is, it is an unsecured loan . It can be used for medical emergency, marriage, travel or other personal expenses. The interest rate of this loan is high, which can go from 11.90% to 14.50%. Also, its tenure is limited to a maximum of 5 years. Since no guarantee is taken in this, the bank keeps the interest rate high to cover the risk.
Who is cheaper?
If we only talk about the interest rate and the total payment in the long term , then the home loan is clearly cheaper than the personal loan . In a personal loan, the EMI ends sooner, but more has to be paid every month. On the other hand, the EMI in a home loan is less and the total interest amount also reduces due to tax exemption. So if your need is related to buying or constructing a house, then a home loan is better. On the other hand, if the expense is an emergency and you cannot afford a mortgage, then a personal loan is the only option.
When to choose what?
If you have a stable income source and are planning to buy a property, then BOB Home Loan will be the best option. On the other hand, if your need is short-term, and you do not want to give a guarantee, then BOB Personal Loan can handle your situation. Though it may be expensive, the processing is fast.
conclusion
Both BOB Home Loan and Personal Loan have their own importance, but if the question is which one is cheaper , then the answer is clearly BOB Home Loan . It is not only available at a lower interest rate, but due to the long tenure and tax benefits, it is a more profitable deal overall.