Bank of India Home Loan

Bank of India provides you home loans of minimum Rs. 1 lac to maximum Rs. 5 crores and even provide higher loan amount to high net worth individuals and firms/corporates. The interest rate charges by Bank of India for home loan ranges from 8.70% per annum to 8.80% per annum, calculated on daily reducing balance. Bank of India offers you tenure to repay the amount from 1 year to 30 years. Apart from it, BOI provides you Free Personal Accident Insurance cover and Life Insurance Cover to borrowers for Loan Protection(optional).

Bank of India is a good fit for you if?

High Networth Individuals/Firm/Corporates –  Unlike regular salaried and self-employed applicants, Bank of India offers home loans of above Rs. 5 Crores for high net worth individuals and firms/corporates.

Bank of India Home Loan at a glance

Annual Interest Rate8.70% – 8.80%
Loan TermUp to 30 Years
Loan AmountRs. 1 Lac – Rs. 5 CroresAbove Rs. 5 Crores for High Net Worth Individuals and Firms/Corporates
Time of Funding
Pre-Payment ChargesZero to 2.25% of the outstanding amount

BOI provides you loan amount of minimum to Rs. 1 lac and maximum to Rs. 5 crores and above for high net worth individuals and firms/corporates. At an annual interest rate of 8.70%-8.80%. Bank of India offers you tenure to repay loan amount of 1 year to 30 year. Bank of India doesn’t take s any prepayment charges on floating rate loans. Bank of India takes no charges for prepayment of home loan fees payable for partial or full prepayments irrespective of the source.

Why Choose Bank of India?

No Prepayment Charges on Floating Rate Loans –  Bank of India doesn’t take s any prepayment charges on floating rate loans. Bank of India doesn’t takes any  charges for prepayment of home loan fees payable for partial or full prepayments, whether the borrower pays funds from his/her pocket or not.

Interest Calculation on Daily Reducing Balance – Interest is calculated on daily reducing balance as compared to many other banks calculating interest on monthly reducing balance. Interest is calculated on daily reducing balance basis is a great advantage to customer as it results in lower interest amount.

Step Down EMI Facility –  BOI provides you up with the facility of step up loan EMI where you can pay a lower Equated Monthly Installment (EMI) during the initial years of repayment and gradually increase the EMI as the tenure progresses. Bank of India offers option for different EMI amounts for different periods during tenure of loan to suit customer’s repayment capacity.

Step Up EMI Facility – BOI also provides you up with the facility of step down loan EMI where you pay higher EMIs initially and the amount decreases after a defined period.This helps you to reduce your interest burden substantially by paying a higher principal amount and at the same time enjoy the flexibility of the money flow.

What to watch out for?

High Processing Fee Range – Bank of India charges you high Processing fee of upto Rs. 20,000. While if you see, Axis Bank charges you 10,000 of processing charges. Which as compared to BOI is low.

Loan Above Rs. 5 Crores available in limited locations –  BOI offers you home loan of above Rs. 5 Crores in only Metros and Major cities mentioned as follows – Mumbai, New Delhi & Delhi NCR, Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad and Pune.

Compare Bank of India Home Loans to Other Banks

Bank NameBank of IndiaKotak Mahindra BankUnion Bank of India
Typical APR8.70% – 8.80%8.70%8.65% – 12.65%
Loan TermUp to 30 Years5 Years – 20 YearsUp to 30 Years
Maximum Lending AmountRs. 5 CroresAbove Rs. 5 Crores for High Net Worth Individuals and Firms/CorporatesRs. 20 CroresRs. 2 CroresAbove Rs. 2 Crores in some cases
Processing Fee0.25% of the loan amountMin Rs. 100 to Max Rs. 20,000Upto 1.25% of Loan amount0.50% of the loan amountMax Rs. 15000 & NIL for BSNL Employees
Time to FundingWithin 5 working days
Pre-ClosureZero to 2.25% of the balanced amountZero to 4% of the balanced amountZero to 2% of the balanced amount

If you compare BOI with Kotak Mahindra Bank and Union Bank of India then BOI provides you with APR of 8.70% to 8.80%, while Kotak Mahindra Bank APR is 8.70% and Union Bank of India APR is 8.65% to 12.65%. Bank of India provides you loan amount of maximum upto Rs. 5 crores and above for high net worth individuals and firms/corporates, while Kotak Mahindra Bank provides you loan amount of Rs. 20 crores within 4 hours of approval and Union Bank of India they provides you the maximum loan amount of Rs. 2 crores and above in some cases. Hence, Bank of India is not a good choice if you want to avail funds as high as Rs. 20 Crores like Kotak Mahindra Bank.

Bank of India offers you tenure to repay the loan amount up to 30 years, while Kotak offers tenure of 5 years to 20 years and Union Bank of India offers tenure of upto 30 years. Bank of India charges processing fee of 0.25% of the loan amount subject to minimum of Rs. 100 to maximum to Rs.20,000. Kotak Mahindra Bank charges you processing fee of upto 1.25% of the loan amount while Union Bank of India takes 0.50% of the loan amount as processing fee which goes to maximum Rs.15,000. Bank of India does not takes any pre closure charges on floating rate loans while Kotak Mahindra bank and Union Bank of India charges an amount up to 4% of the balance amount and up to 2% of balanced amount respectively.

Am I Eligible?

  • National rental income can be considered in case of 2nd House or employees staying in Staff Quarters.

Loan Offerings

BOI Star Home Loan

Bank of India provides you home loans to purchase a Plot for construction of a House, purchase/construct house/flat, as well as for renovation/ repair/alteration/addition to house/flat including loan takeover from other banks. Bank of India provides you loan of minimum Rs. 1 lac and maximum upto Rs. 5 crores at an interest rate equal to 8.70% per annum for Female applicants and 8.75% per annum for male applicants. Bank of India offers you tenure to repay the loan as long as up to 30 years including moratorium period of upto 36 months.

Bank of India provides you loan amount of maximum upto Rs. 3 Crores for construction/purchase of a house/flat, subject to maximum Rs. 5 Crores in major metro cities such as Mumbai, Kolkata, New Delhi and Chennai and maximum loan amount upto Rs. 50 Lacs for repairs/renovation/extension to house/flat. For purchasing a plot, maximum loan amount provided is upto 3 crores.

The applicant can  be a  salaried employee, professional, self-employed persons, NRIs, PIOs, HUFs, and Proprietor Firm, Partnership firms or a corporate. The borrower can avail a free Personal Accident Insurance cover, covering accidental death as well as permanent total disablement as per terms of insurance policy covering loan outstanding as on the date of accident. The borrower can also avail life Insurance cover, at affordable premium against risk of death during tenure of loan under Group Insurance Scheme in tie up with Star Union Dai-Ichi Insurance Limited at borrower’s own expenses & option. Loan should be repaid before Salaried applicant reaches the retirement age and Self-Employed reaches the age of 70 years. Age limit of upto 70 years also allowed to salaried employees where post retirement income is assured. Salaried applicant can borrow upto 72 times of gross monthly salary or 6 times of gross annual income as per the ITR.

Self-Employed can borrow upto 6 times of Gross annual income as per the ITR. HUF/Proprietorship /Partnership Firm/ Company can borrow 6 times of cash accruals (PAT+ Depreciation) as per Balance Sheet/P&L Account. Security in the form of mortgage/Equitable Mortgage on land/flat/house should be provided to the bank. Bank of India asks for a third Party guarantee, if mortgage could not be created before or at the time of disbursement. BOI provides you facility for 100% loan irrespective of stage of construction – The proponent will be eligible for loan subject to obtention of minimum marks or minimum entry level norm fixed by the bank.

BOI Star Home Loan Top Up

Bank of India provides top-up loans for all existing individual home loan borrowers having satisfactory record for last 2 years after completion of moratorium period where valid and enforceable mortgage should be available in the Home Loan account. However, the Firms, HUFs, corporates are excluded from the eligibility criteria. BOI Star Loan Top Up provides you loan of minimum amount of Rs. 2 lacs where maximum loan amount is limited to 75% value of the property including outstanding in existing Home Loan account at an Interest rate equal to 8.75% per annum for Female applicants and 8.80% per annum for male applicants. BOI offers you tenure equal to existing home loan period, subject to maximum 12 years.

Documents required:

  • Duly signed Loan Agreement
  • Declaration regarding relation to senior officers of the Bank, or a Director or near relative of the Director of a Banking company etc.
  • Oral Assent for Extension of Mortgage (Extension of Mortgage by recording continuation of oral assent/memorandum of entry/deed of further charge as the case may be)
  • Letter of Guarantee
  • Other documents ,if any, for perfecting the security as per bank guidelines /legal opinion.

BOI Star Diamond Home Loan

BOI Star Diamond Home Loan is special home loan offering for High Networth Individuals, Firms/ Corporate having minimum average gross income of Rs. 1 crore and above during the last 3 years as per audited balance sheet /IT Returns and taking loan for residential accommodation of their partners/directors. Bank of India provides the loan amount of up to Rs 5 crores and above for Star Diamond Home Loan. However, this offering is available within some major Metros and Major cities only, i.e. Mumbai, New Delhi & Delhi NCR, Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad and Pune. The interest rate applicable is equal to 8.70% per annum for female applicants and 8.75% per annum for male applicants. BOI charges you one time processing fee of Rs. 50,000 or maximum as per Star Home Loan Scheme, whichever is higher. No other charges will be applicable except actual out of pocket expenses.

BOI Star Pravasi Home Loan

BOI Star Pravasi Home Loan provides home Loan for Non Resident Indians (NRIs) holding valid Indian Passport and Persons of Indian Origin (PIOs) holding Foreign Passport, where he/she have a steady source of income. PIOs have to prove their PIO status by current passport indicating birth place in India, copy of Indian Passport held earlier, Parents or grandparents passport with details substantiating his claim as PIO or copy of PIO Card.

All co-owners of the property must be the co-applicants for the loan. Co-applicant also could be a resident Indian in which case his/her income also could be considered for calculation of loan amount and repayment capacity. However, foreign national of non-Indian origin cannot be included as a co-owner or co-borrower and can avail minimum Rs. 1 Lac to upto Rs.5 Crores.. The amount availed can be used for purchase/construct house/flat, renovate/extend/repair existing house/flat, purchase a plot of land for construction of house and balance transfer. The applicable interest rate is equal to 8.70% per annum for female applicants and 8.75% per annum for male applicants.

BOI offers you tenure to repay the loan amount ranging of up to 30 years including moratorium period of upto 36 months. A salaried applicant can borrow upto 72 times of gross monthly salary or 6 times of gross annual income as per the ITR. And a Self-Employed can borrow upto 6 times of Gross annual income as per the ITR. HUF/Proprietorship /Partnership Firm/ Company can borrow 6 times of cash accruals (PAT+ Depreciation) as per Balance Sheet/P&L Account. Interest rate EMIs can be paid by remittance from abroad through normal banking channels for out of funds in applicant’s NRE/FCNR/NRO Account in India. Ideally standing instructions would be required for recovery of money from NRE /NRO Accounts. Or, Close relatives of the borrower in India could also repay installments of such loan, interest and other charges, if any, through their bank account directly to borrowers NRI Home Loan Account with the Bank.

BOI provides rental income of the property, wherever it is considered for calculation of eligibility also could be credited directly to the credit of home loan account. And Free Personal Accident Insurance cover for loan up to Rs.5 Crores for the individual borrower (covering accidental death as well as permanent total disablement) as per terms of insurance policy covering loan outstanding as on the date of accident(Renewal at the discretion of the Bank). BOI also provides Life Insurance cover to housing loan borrowers, at affordable premium against risk of death during tenure of loan under Group Insurance Scheme in tie up with Star Union Dai-Ichi Insurance Co. Ltd. at borrower’s own expenses & option.

Documents required for NRIs:

  • Passport size photograph
  • Passport with visa stamped on it
  • Self attested copy of PAN Card in India 
  • Self attested address proof in India (if the address is other than that is mentioned in Passport).
  • Self attested Name / Address and Contact details of close relative in India.
  • Address Proof (Foreign – Driving License , Utility Bill, etc.,)
  • Latest Credit Bureau Report (applicable to customers residing in countries where credit bureaus exists viz. USA, UK etc.,)
  • Credit Information Report to be generated by the branch from any approved Credit Information Companies (CICs) in India.
  • Property related documents
  • Cheque for processing charge / charges for title search report /valuation report /CERSAI registration charges and other charges, if any. Excess ,if any, to be refunded to the borrower

Documents for Salaried NRIs:

  • Work Permit
  • Full Address of the employer along with name and contact details of department head /employer.
  • Employment Contract along with translation in English.
  • Copy of identity card issued by current employer, duly attested by the Employer.
  • Copy of Continuous Discharge Certificate(CDC) for applicants employed in Merchant Navy.
  • Full details past employment records, if any-self attested
  • Details of Overseas Bank Account for previous one year where salary is credited along with Bank Account in India , if any-self attested.
  • Latest salary slip in original.
  • Annual Income Tax Return – filed as per rules applicable in the country where he resides- for last 2 years.

Documents for Self-Employed:

  • Membership of professional organization
  • Government or local body permission or license to engage in business activity to be attested by employer (if employer is a Bank/MNC/Govt.Body). Otherwise To be attested by Bank of India Branch /Representative Office /consulate /our foreign office / Embassy.

Bank of India Home Loan Rate of Interest

Home Loan TypeApplicable Interest Rate
BOI Star Home Loan8.70% – 8.75% per annum (Floating)
BOI Star Home Loan Top Up8.75% – 8.80% per annum (Floating)
BOI Star Diamond Home Loan8.70% – 8.75% per annum (Floating)
BOI Star Pravasi Home Loan8.75% – 8.80% per annum (Floating)

How to Apply for Bank of India Home Loan?

At Bank of India Branch

  • Visit the nearest branch of the bank along with the loan application form.
  • Click here to download application form for Bank of India Home Loan.
  • Fill up the mandatory details. 
  • Submit your details. 

After I Apply?

Check Home Loan Status

  • Click here to go to the status tracking page.
  • After that enter your application and mobile number 
  • Submit the details. 

Through customer care 

  • First you need to dial 1800-220-229/1800-103-1906(tollfree), and wait for the IVR instructions. 
  • If you want to proceed in english press 1 and if in hindi press 2 
  • After this They will ask you if you are NRI then press 1 and if Indian press 2 
  • After that they will ask you option to talk to customer care executive and you need to press 9 for that 

Once I’m Approved?

Fees & Penalties

Type of ChargesApplicable Charges
Processing Charges0.25% of the loan amount (for Individual borrowers in Urban Areas)Min Rs. 100 to Max Rs. 20,000
0.75% of the fee applicable on Individuals in Urban Areas (for Individual borrowers in Rural Areas)
One time fee of Rs. 50,000 for Star Diamond Home Loan
Foreclosure ChargesNilOn Floating Rate Loans
Min 0.65% per annum on the outstanding amount to Maximum 2.25% of the loan amountOn Home Loan on Fixed Rates and Balance Transfer
Part-payment Charges
Penal Charges
Switching Charges0.25% on the outstanding amountFrom Fixed to Floating
0.40% on the outstanding amountFrom Floating to Fixed
EMI Bounce Charges
Documents Charges
Inspection Charges

The processing fee charged by Bank of India is 0.25% of the loan amount for the individual borrowers in urban areas i.e minimum to Rs. 100 to maximum of Rs. 20,00. Processing Charges are 0.75% of the fee  applicable on individuals in urban areas (for individual borrowers in rural areas). One time fee of Rs. 50,000 is charged as a processing fee from Star Diamond Home Loan borrowers. BOI doesn’t takes any foreclosure charges on floating rate loans. But takes minimum 0.65% per annum on the outstanding amount to maximum of 2.25% of the loan amount on home loan on fixed rate and balance transfers. BOI takes switching charges of 0.25% on the outstanding amount from fixed to floating. And 0.40.% on the outstanding amount from floating to fixed as switching charges.  

FAQs

Bank of India Customer Support?

For contacting Bank of India you need to call on 1800 220 229 or 1800 103 1906(toll-free), even you can email us at BOI.CallCentre@bankofindia.co.in

What is the MCLR Rate applicable on Home Loan?

Interest rate is linked to 1 Year MCLR rate which is 8.55%.

How much EMI would I have to pay on availing Bank of India Home Loan?

Net take-home pay for individuals including NRIs/PIOs is as follows:

  • Minimum 40% of Gross Monthly Income where Gross Monthly Income is up to Rs.1 Lac.
  • Minimum 30% of Gross Monthly Income where Gross Monthly Income is above Rs.1 Lac upto Rs. 5 Lacs. 
  • Minimum 25% of Gross Monthly Income where Gross Monthly Income is above Rs. 5 Lacs.

In case of HUF/Proprietorship/ Partnership firm/Company: DSCR (Debt service coverage ratio) should be minimum 1.5.

In case of Star Diamond Home Loan, 

  • 25% margin money of the Gross Income for Individuals.
  • 1.5 DSCR ratio for Firms/Corporate.

How much margin do I have to provide for Bank of India Home Loan?

In case of first house:

  • Margin money equal to 15% of the project cost for home loans of upto Rs. 20 Lacs.
  • Margin money equal to 20% of the project cost for home loans of above Rs. 20 Lacs to upto Rs. 75 Lacs.
  • Margin money equal to 25% of the project cost for home loans of above Rs. 75 Lacs.

In case of 2nd house or subsequent:

  • Margin money equal to 20% of the project cost for home loans of upto Rs. 20 Lacs.
  • Margin money equal to 20% of the project cost for home loans of above Rs. 20 Lacs to upto Rs. 75 Lacs.
  • Margin money equal to 25% of the project cost for home loans of above Rs. 75 Lacs.

Note: Margin is calculated on pure cost of the house/flat excluding stamp duty, Registration and other documentation charge where cost of house exceeds Rs.10 lacs. For houses with cost not exceeding Rs.10 Lacs, expenses towards stamp duty, registration and other documentation charge can be included in the project cost.

In case of NRIs/PIOs, margin to be paid by the borrower by remittance from abroad through normal banking channels or out of funds in his NRE/FCNR/NRO Account in India. Such payments cannot be made by traveler’s cheque or by foreign currency notes.

In case of High Net Worth Individuals, Firms and Corporates, 25% margin money is required on pure Value of Property. That means on cost of construction /acquisition /renovation /extension etc. No other costs such as stamp duty, registration charges, taxes, charges etc., to be added to the cost of property while calculating margin).

What Housing Projects are approved by Bank of India?

Click here to check approved projects.

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