u/Hot_Plastic_4474

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20/06/2026 FINAL UPDATE: They finally give me 7.40% ROI after 20 days Hassle

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If you have taken a Home Loan Takeover from Bank of Baroda, please read this carefully before your first annual review. This could save you from paying higher interest than what was promised to you.

What happened to me

I took a BOB home loan takeover in Feb 2025 at 8.30% p.a. (BRLLR-linked). As RBI cut rates, my rate correctly fell to 7.30%. So far, so good.

At my annual review, the bank revised my rate to 8.05% — even though BRLLR itself had only moved to 7.90%. This made no sense until I looked closely.

The trick they pulled

MY SANCTION LETTER SAID

BRLLR: 5.25%

Credit Spread: −0.65%

Risk Premium: +0.05%

Rate: 7.30%

WHAT BANK APPLIED AT REVIEW

BRLLR: 7.90%

CIBIL Loading: +0.10% (credit spread removed!)

Risk Premium: +0.05%

Rate: 8.05%

They silently removed the −0.65% Credit Spread that was in my sanction letter and replaced it with a +0.10% CIBIL band loading — a swing of 0.75% in their favour. My CIBIL score actually improved from 787 → 800 between sanction and review, so the loading makes even less sense.

When I asked, the branch cited an "internal document". No written notice was ever sent to me about this change.

Why this matters

• Your sanction letter is a binding contract. The bank cannot unilaterally remove a credit spread mentioned in it.
• RBI mandates written communication for any interest rate change. No notice = procedural violation.
• An internal circular cannot override your sanction letter without your written consent.
• Even 0.75% extra on a ₹27.5 lakh loan adds up to thousands of rupees per year in excess interest.

TL;DR: BOB may quietly drop your Credit Spread at annual review and replace it with a CIBIL band loading — even if your score improved. Check your sanction letter terms carefully and demand a written breakup of your revised rate.

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20/06/2026 FINAL UPDATE: They finally give me 7.40% ROI after 20 days Hassle

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UPDATE: ZONAL OFFICER HAS DENIED ON GROUND OF INTERNAL DOCUMENT BASED ON CIBIL RATE CHART

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Took a BRLLR-linked home loan from Bank of Baroda in early 2025. Everything was fine until the annual review, where they revised my rate upward even though:

1. My CIBIL score improved (was 787 at sanction, now 800)
2. The sanction letter clearly states a Credit Spread of -0.65%
3. No written notice was given before or after the revision

What the math actually looks like:

Component	At sanction	Should be now	What BOB applied
BRLLR	6.25% → 5.25%*	7.90%	7.90%
Credit Spread	-0.65%	-0.65%	Removed
CIBIL loading	+0.10%	—	+0.10% added
Risk premium	+0.05%	+0.05%	+0.05%
Effective rate	—	7.30%	—
Rate actually charged	—	—	8.05%

*BRLLR had dropped to 5.25% when RBI cut rates, correctly bringing my rate to 7.30%. Now BRLLR is 7.90% but my spread formula is being changed.

TLDR: BOB quietly dropped the -0.65% credit spread from my sanction letter at annual review, replaced it with a +0.10% CIBIL loading — despite my score going up. Net impact: I'm paying 0.75% more spread than my contract says. When I asked, they cited an "internal document." No written notice, no explanation.

Has anyone else faced this? Is BOB allowed to change the spread component of a BRLLR loan at annual review? My understanding is that the spread is fixed for the loan tenure — only the benchmark (BRLLR) is supposed to float.

Thinking of escalating to the RBI Banking Ombudsman if the branch doesn't respond. Any experiences or advice welcome.

Update 1: Manager called me in un-official hours and let me know i have 1 option only left with to pay 10k and convert into prime account which has no annual reset settings further; I softly denied and asking justification about removing my discounted spread. I will share updates as it happens..!!