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BARODA Housing Loan (BHL)

Type of facility: Loan
Eligibility: Individual in single OR joint names.
  • Construction of new dwelling units / flat / Purchase of Flat under construction.
  • Purchase of old houses, generally not more than 15 years old (based on structural soundness and residual life of the house).
  • Repayment of loan availed from other banks / institutions for the purpose of financing house / flat.
  • Purchase of plot to construct a house within a period of 2 years from the date of purchase.
  • Houses/Flats purchased or constructed from own sources (period not exceeding 2years)
Age of the borrower: Principal Borrower 21 years & Joint borrower may be of 18 years.
Amount of Loan: Maximum Ugx.500 million including the cost of Insurance premium of the House Subject to repaying capacity. Quantum of loan amount should not exceed:
  • -48-times of gross monthly income of the borrowers who are in service / employment.
  • -5-times of annual average income of the borrower/s who are in profession or business (average of last –3- years income is desirable) net of depreciation.
  • Wherever income of the family members is clubbed, they will be made co-borrowers.
Rate of Interest: * At 2% below PLR with monthly rests. 2% additional interest (Penal Interest) in case of default in repayment schedule.
Repayment Period:
  • Up to 15 Years (including moratorium period)
  • Moratorium period maximum 12 months (for new constructions only)
  • Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons.
  • In case of self employed / professionals / other individuals: Age of the borrower plus repayment period shouldn’t be more than –55- years.  
Repayment Capacity: Total gross deduction including installment of Housing Loan should not exceed 70% of Gross Income.
Margin:  For purchase of plot: 40 %. For construction of house / flats already constructed from own sources and loan is taken subsequently: 25% of the cost of construction / purchase price of house / flat.
  • Mortgage of flat / house / plot.
  • Personal guarantees of spouse / co-borrower, any individual of good repute and worth.
  • Equated Monthly Installments
  • EMI will include insurance premium charges also.
  • Interest from the date of disbursement to the date of commencement of EMI will be recovered separately on monthly compounded basis.
  • The property under loan will be insured and Borrower's life will also be insured.
* Interest rate is subject to change from time to time. View latest Interest Rate.
** For further details, contact any of our branches in Uganda