Bank of India Home Loan

Table of Contents

• Features of Bank of India Home Loans
• Bank of India Home Loan Interest Rates
• Eligibility Criteria for Bank of India Home Loan
• Bank of India Home Loan Schemes
• Bank of India Home Loan for NRI or PIO
• How to Apply for Bank of India Home Loan
• Document Checklist for Bank of India Home Loan

 

Introduction

Bank of India Home loans also known as Star Home Loans are one of the finest options to secure a home. These loans can also be availed for a house or land of property which you own already.

Bank of India Home loans offers to take over the customer’s housing loan extended and proven authentic by other Banks. The bank’s NBFCs are highly flexible with acceptable terms and conditions.

As a customer of Bank of India, you will have the option to set a floating rate of interest or a fixed rate of interest against your Home loan.

They also provide home loans to NRIs and PIOs which adds to their portfolio of ensuring a great variety of services to their customers.

 

Features of Bank of India Home Loans

• Home loans can be borrowed for constructing a house, purchasing a new or an old Flat or House and even for renovating or redecorating a house.
• This loan has a maximum limit of 50 Lakhs with repayment option up to a maximum of 30 years, which can be taken through reasonable marginal and processing charges having no additional charges at all.
• Competitive interest rates and availability of different EMI options suited for different customers enables them to pay their repayment amount with ease.
• They provide Prepayment of loan without any charges under the option of floating rate.
• Bank of India provides Home loans for NRIs and people of Indian origin.
• Enhancement of Loan amount by including income of the applicant’s close relatives.
• Loans for Installation of Solar panels will be approved in the ROI of the Home loans.

 

Bank of India Home Loan Interest Rates

The interest rates are as of 2019

Bank of India provides interest rates of 8.85% to 8.90%, with special discounted rates for women borrowers for whom the bank offers the lowest interest rate of 8.85%.

Loan Amount	Bank of India Home Loan Floating Interest Rate	Rates offered for female applicants
Upto ₹ 25 Lakh	8.90%	8.85%
₹ 25 Lakh – ₹ 75 Lakh	8.90%	8.85%
₹ 75 Lakh – ₹ 2 Cr	8.90%	8.85%
Above ₹ 2 Cr	8.90%	8.85%

 

Repayment is highly flexible at Star home loans. The maximum duration of repayment that can be opted for is 30 yrs including moratorium period which is up to 36 months in monthly installments, including the approved projects by Bank.

A loan can be repaid by the customer before the date of his or her retirement in cases of salaried customers or until the customer does not reach 70 years of age in other cases. Repayment for salaried persons can also be extended beyond the retirement if the customer has guaranteed income post-Retirement (70 years max.).

Applying for a loan is quite simple with Bank of India as they provide simplified application forms and procedures. Therefore the customer can avail these services at their nearby Bank of India branch.

 

Eligibility Criteria for Bank of India Home Loan

Every customer’s demands are unique, so to meet their expectations Bank of India provides simple eligibility requirement, one must fulfill to avail a Home loan.

• Salaried employees,
• Professionals,
• Self-employed person
• NRIs,
• PIOs,
• Firms, Partnership firms and corporate

 

The following table is a representation of eligibilities for different factors:

Eligibility Criteria	Bank of India Home Loan
Eligible Age of Borrower	21 – 60 years
Loan Amount Eligibility	Rs. 15 Lakh to Rs. 5 Cr
Max Loan per property value	Up to 80%
Max EMI against income percentage	Up to 65%

 

• A person must be 21 years minimum to take a Home loan from Bank of India and not more than 60 years of age.
• The minimum amount of Home loan a person can apply for is Rs. 15 Lakh and maximum amount of Home loan to be available is Rs. 5 crores.
• A person can take up to 80% of the total amount to be paid for the purchase of the house as a loan from Bank of India with remaining 20% of the amount to be paid by the applicant from his pocket as a down payment.
• The maximum amount a person can pay as an EMI installment is 65% of his or her monthly income in their EMI scheme.

 

Eligibility Based on Age

Age of an applicant determines how much duration will be given to him or her for the repayment of a loan. The minimum eligibility to avail Bank of India’s home loan is 21 years of age during the time of loan initiation. Both salaried and self-employed can avail the loan repayment tenure of 30 years each. The maximum tenure of loan eligibility is as follows:

 

Person’s age	Maximum tenure (salaried person)	Maximum tenure (self-employed person)
25 years	30 years	30 years
30 years	30 years	30 years
35 years	25 years	30 years
40 years	20 years	25 years
45 years	15 years	20 years
50 years	10 years	15 years

 

Eligibility Based on Income

The amount of home loan one can avail with regards to their salary after deductions is calculated.

The initial method to read your eligibility will be that they will check your employment status if you are working as a salaried person or whether you earn your income through self-employment. Also, the bank will review your application on the status of your job stability, to check the years in the experience you have under your belt.

Net income is very important in determining how much Home loan a person can avail as it factors in the lifestyle and paying capabilities of that person.

 

Eligibility Based on Value of Property

Bank of India follows the norms of the banking industry and does not finance the whole amount of the purchase finalised by the buyer. Every home loan covers the payment to be made for the deal in terms of a fixed percentage of the total price of the house. Bank of India Home loan scheme decides this percentage of payment to be covered in terms of LTV, which is to calculate the percentage of the total value of the house and then accordingly use LTV.

The person wishes to buy a house worth less than Rs 30 lakhs will have its LTV calculated at 90%. Similarly, if the person wishes to purchase a house worth between Rs. 30 lakhs to 75 lakhs will get an LTV percentage of 80% on the total value of that property. For a property above Rs 75 lakhs, the customer will get 75% of the total value for that property as a home loan by Bank of India.

 

Two factors that boost your eligibility:

1. Signature of a co-applicant: This helps you to become eligible in this Home loan scheme as it ensures your repayment of loan to the bank. A clean CIBIL score of the co-applicant is required.
2. Quick availability of the property papers for the bank.

 

Eligibility Based on CIBIL Score

Applicant’s financial behaviour in the past, which is tracked by the credit score and CIBIL score is used as an important factor by the Bank of India to determine his or her eligibility. CIBIL score tracks every past transaction that the applicant has involved into, and how much efficacy was followed by the applicant in regards to repayment to the lender is reviewed by the Bank. Therefore, CIBIL reports of the customer applying for a Home loan enables the bank to check the pattern of repayment that the applicant has followed in regards to the invoices of previous home loans and credit card swipes. Higher the CIBIL score, higher the chances of your application getting an approval of the bank. The minimum CIBIL score required by the Bank of India is 650, for the borrower to get a home loan.

 

Some points to remember on your CIBIL score which can lower your eligibility

1. Late payments of installments
2. A high number of unsecured loans
3. Using credit card up to its upper limit frequently
4. Multiple loan applications

 

Bank of India Home Loan Schemes

Bank of India provides a variety of Home loans suited for a diversified range of customers. A particular home loan scheme doesn’t need to be in line with the requirements of another customer. Therefore to satisfy every customer’s demands and aspirations, there are many options of Home loan schemes provided by the Bank of India.

Each scheme is customised to give the customer a choice in regards to his or her repayment capacities and interest favorability.

It is to be noted that the lower CIBIL score leads to higher interest rates being levied upon the repayment of loan.

• Interest rate begins at 8.85% for every application.
• Processing Fees: Up to 0.50% (Min.Rs.1, 500 to Max. Rs.50,000 ).
• Prepayment charges are zero for a fixed interest rate and 0.65% to 2.25% of loan balance for fixed-rate packages.

 

Bank of India Home Loan Schemes	Interest Rate (Per annum.)
BOI Star Home Loan	8.85%
BOI Star Diamond Home Loan	8.85%
BOI Star Smart Home Loan	8.85%
Star Pravasi Home Loan	8.85%
Pradhan Mantri Awas Yojana	8.65%
BOI Star Loan Against Property	10.65% to 11.15%

 

Main home loan by the bank

Bank of India Star home loan provides competitive interest rates for loans and are capable of catering to most of the demands of the customer in regards to repayment flexibility, prepayment flexibility, etc. Their home loans have simple documentation process with fast processing of the application, best in the market floating and a fixed rate of interest rates and usually satisfy requirements of every home loan buyer.

Anyone can avail this home loan scheme irrespective of their income, nature of employment and age group.

 

Features of Bank of India Star home loan

• They provide a better scheme regarding EMIs, which are low due to fixed low-Interest rates on this loan.
• Up to Rs. 500 Lakhs (Rs 5 crores) can be availed through a home loan.
• The total repayment tenure allowed by the bank is 30 years.
• The bank’s home loan application doesn’t require you to submit a huge pile of documents. Basic documents are enough for the borrower to claim the home loan.
• Even the processing of the application is done quickly enough that your home loan gets approved without any unnecessary delay.
• Everyone satisfying the Bank’s basic criteria are eligible for Bank of India Home loan be it a salaried person or a self-employed person or an NRI or even a PIO.
• These home loans are primarily available for a new house but are also made available for other tasks like renovating or refurbishing your old house, purchasing a plot or even to transfer the loan from another bank onto this scheme called as refinancing the home.
• The bank provides you with prepayment of loan amount to the bank before the full tenure but is only available to those customers who had taken home loans from them under the floating interest rate scheme.
• One of the key benefits of taking a home loan from Bank of India is that they have flexible EMIs option.

 

Bank of India Home Loan for NRI or PIO

Star Pravasi Home loan scheme is the specific scheme available for NRIs and PIO wishing to buy a house or a plot of land through the means of a bank financing for your purchase.

Many Indians staying overseas wants to buy properties in India. Similarly, people of Indian origin are willing to purchase a house or a plot which gives them a sense of pride while knowing that they have a home of their own in India which is essential for them to establish a connection with their country of origin.

Non-Resident Indian (NRI), Person of Indian Origin (PIO), Overseas Citizen of India (OCI) are the individuals eligible for Bank of India home loans.

If you can enable an Indian citizen to become your application’s co-applicant, it ensures them that your repayment will not be a problem as you have assured a resident of India as your co-applicant.

This is a big market for Home loan providers to tap and targeting them with attractive home loan schemes with industry best rate of Interest. Bank of India offers a lucrative home loan scheme for these consumers, which enables them to complete one of their aspirations.

Staying outside of India, these individuals are not familiar with the Indian property market and are often skeptical while buying a new property. So if you are an NRI or PIO, you must first get the approval of your home loan application before finalising your purchase of a property in India.

 

Features of Bank of India Star Pravasi home loans for NRIs and PIO

• Bank of India provides home loan to both salaried and self-employed individuals.
• Minimum age requirement is 21 years to apply for their NRIs or PIO Home loan scheme, and must also hold work experience of minimum two years or more.
• They finance for the construction of a new house from Rs 30 lakhs up to Rs. 5 crores, similarly they can finance up to Rs 50 lakhs for the renovation of an old property.
• Repayment is available to them for up to tenure of 30 years.
• The competitive interest rate of 8.85% p.a is provided by them with a processing fee of 0.25%.
• You can apply for this scheme online as it is recommended to fill the bank’s application from your convenience. The application is usually processed very rapidly to serve the applicant’s needs.
• Repayment of loan amount has small EMIs options which the applicant can avail according to their preference.
• Pre-payment is available to NRIsorPIO for them to pay the amount before the tenure ends with no additional prepayment fees.

 

Housing Loan for High-net-worth Individuals

Indian economy, which is today’s fastest-growing economy in the world. As the poor class is uplifted by this tremendous growth, it is also true that the upper class of this country is also flourishing.

These individuals face similar problems while acquiring a loan which fulfills their aspirations of buying new houses or flats or plots of land, which in turns increases the prestige of their profiles. Many people have a misconception that these individuals grossing high income annually do not face the same complications which are faced by a common man while acquiring a home loan, in reality; they do go through the same process.

So it becomes highly probable to introduce a specific scheme targeted for these individuals from the upper class as they also aspire to buy new houses or purchase a plot for construction of a new house.

 

Features of Bank of India Star Diamond home loans for High net worth individuals

• Home loans from Bank of India are available for individuals earning Rs. 1 crore per annum. High-income earners working in an MNC firm and corporates, their audits of the past three years are cross verified by the Bank.
• The interest rate for this scheme is 10.20%.
• The floating interest rate is 0.25%.
• The minimum amount of loan one individual falling in this category can take Rs. 5 crores up to no particular limit.
• This loan is only given to individuals who want to purchase a house or a flat in any of the major metro cities of India.
• The bank demands a minimum margin of 25% on the cost of construction, which covers various additional costs.
• The application requires a one-time processing fee of minimum Rs 1000 and maximum Rs. 20000, other than this no other additional fee is imposed on the application.

 

Amount of loan available under this loan scheme

This home loan scheme is used when an individual wants a higher quantum of loan amount for him or her to buy a house or flat or purchase a piece of land for construction of property according to his or her preferences.

The eligibility for this home loan is having a gross income of minimum Rs. 1 crore, which is usually confirmed by the bank reviewing your audit reports of the past three years. The property or the piece of land must be located in one of the major metro cities of India.

The applicant for this category who wishes to apply for a higher quantum of loan can apply for Bank of India’s Star diamond home loan scheme which provides financing for your house purchase with top of the banking industry interest rates for these kinds of loans.

One of the key aspects of this home loan scheme is that applicant with high gross income can take a loan of Rs. 5 crores to any amount which goes north of this base price. This scheme starts its base rate of interest at 10.2% plus a floating interest rate of 0.25%

The marginal cost of 25% of the total cost of construction is required by the bank.

 

Eligibility for NRI or PIO

Non-resident Indians and People of Indian origin are among the group of people living outside of India. Individuals from this group are of different ethnicity, ancestry and even different national citizenship. According to the data of MEAs, more than 30 million people who are living outside of India are categorised as NRIs or PIO.

There is a specific period specified to determine who is eligible to get the status of NRI; this period is of 182 days after which the person is recognised as an NRI.

Similarly, people who had Indian passport at their disposal but now they have another country’s passport eligible to be recognised as Person of Indian origin. Also, foreign citizens having either of their great-grandparents or parents or grandparents who were born in India and were permanent residents of India are given the status of People of Indian origin (PIO).

So many people who have ventured overseas for financial prosperity have a sense of belonging to their country; therefore many of these people try to buy property in India which they can do by financing the deal through home loans.

Bank of India Star pravasi home loans is a scheme specifically packaged for the sole reason of catering the Indian diaspora living outside the country. The process is simple and quick as you can apply for home loans sitting at your home or office through the use of the internet by logging into Bank’s online portal

Purchasing a house in India when you are staying in another country is difficult as the actual process of finalising the loan deal and then procuring the house or property become tedious.

To ensure the NRI or PIO applicant doesn’t have to come to the country for every little thing about the deal, Bank of India Star pravasi home loan scheme have their assistance online at your disposal as they mediate the deal through your power of attorney vested in them.

Making this a process where the buyer staying outside of India doesn’t need to visit India even once.

The overseas applicant could live track all the updates at their convenience as Bank of India star pravasi home loan online portal gives you quick updates within a few seconds.

 

Who are eligible for this loan scheme

• Non-Resident Indians holding an authorised Indian Passport ;
• PIOs having Foreign Passport with a regular income.
• PIOs

 

Resident types the loan applies to	NRIs PIOs
Nationality required	Indians
Work experience	Minimum 2 years in a particular company
Age requirements	21-60 years of age
Loan tenure	Up to 30 years
Loan amount	Varies case by case
Interest rates	9.7%(up to Rs 75 lakhs) 9.95%(above Rs. 75 lakhs)
Processing fee	15-25%
Prepayment fees levied	Nil

 

Applicant fulfilling all of the above-listed requirements is eligible for Bank of India Star pravasi home loan.

 

Documents required by the bank to validate your application

This is important, as submitting all the required documents will lead you one step closer to your aspirations of buying a property or a plot of land in India.

This is the list of documents you must produce before the bank:

• A duly filled home loan application form with authentically verifiable details.
• Recent passport size photograph.
• Several copies of your Passport with visa stamped correctly upon it.
• PAN Card’s self-attested photocopy.
• Indian address Proof’s self-attested
• Relative’s contact information.
• Your overseas address proof photocopy.
• Most recent Credit Bureau Report (the UK, USA, etc.).
• Applicant’s CIBIL report to be reviewed by the Bank’s branch.
• All documents regarding the property.
• A cheque for every service being performed by the bank for the applicant.

 

It is imperative to emphasise getting the approval from the bank for the home loan before actually entering negotiations for the purchase of the property or flat.

A property which is being well maintained and is within the residual age of 12 years, Bank will have no issue approving your application for the same.

Determining the co-borrowers or co-applicants in this application is imperative as it vests a power of attorney to make crucial calls on your behalf when needed.

 

After checking on the steps listed above, the final documents to be submitted are as follows:

Identify the proof required by them:

• A valid passport
• A valid driving license
• A voter ID card

 

Either of these address proofs:

• A voter ID
• A valid driving license
• A valid passport

 

Income proof for Salaried People:

• Work Permit papers.
• Employer Company’s address proof along with contact details of the corporate boss.
• Applicant’s employment contract available in the country’s language as well as in English.
• Photocopy of your ID card provided by the present employer, duly attested.
• Details regarding your all previous employment records.
• Your recent salary slip.
• IT Return file with all the clearances of the past two years.

 

Income proof for self Employed or Entrepreneurs:

• Affiliation of a professional organisation and its authorised documents.
• Local government body’s authorisation to occupy in any business matters.
• Only to be verified by your employer (if he or she is a Bank, MNC or Central or State Government Body employer). Else it has to be verified by any of the Bank of India Branch Representative.

 

Property documents featuring:

• Title deed
• The first payment made out to the seller’s copy.
• Receipts of payments made out to the developer with apt verification.
• Buyer Agreement Letter duplicates to be kept at all times during negotiations.
• Encumbrance Certificate of property
• Blueprints of the site tendered by the developer.
• The estimated cost of construction under the signature of a civil engineer.

 

How to Apply for Bank of India Home Loan

One of the most fulfilling aspirations in anyone’s life is to buy a house of their own, which is possible if they apply for a home loan. The prospect of applying for such loans is a scary one and becomes one of the key factors leading to customers backing off the loan scheme.

Bank of India Home loan schemes is easy, convenient and affordable in today’s banking industry.

Following steps will guide you to understand the process of applying for a home loan in a very comprehensive manner with fine details.

Are you eligible for a home loan?

These are the important factors which determine the overall eligibility of the applicant and pave the way for a smooth process then after once these factors are completely satisfied.

• Age
• Net income
• Credit history
• Information of the dependents mentioned in your application.

Search for your local Bank of India bank and fill the application form, or else just log on to their online web portal to fill your details or ask any queries to them on the internet.

 

Document Checklist for Bank of India Home Loan

Carry these documents while filling the forms at your local branch.

• Property registration’s legal documents.
• Semi-annual bank statement.
• ID proof
• Address proof
• IT Returns of last three years.

After ensuring all of the things listed above, proceed with the hardcopy of the application which you have duly filled.

Your application will be approved quickly by the bank under the condition that all which you have presented before the bank is authentic and cross verifiable.

An honest applicant with a good CIBIL score and who is hitting all the eligibility’s checklist will have no worries in this process whatsoever.

 

An Advance check for processing formalities	A check which is to validate the details of your bank
Duly filled application form	With a single passport size photograph
Source of income proof	Consisting of salary slips, bank statements going back 1 year, and Form 16
Investment portfolio’s proof	Mutual funds and other bonds documents
Current employment letter of confidence	A letter from HR
Identity proof with photo	Passport-sized photos, Voter ID, PAN card
Necessary  property documents	Enclosed with sale deed, Katha, Transfer of Ownership documents attested
Address proof	Sale Deed copy or Rental Agreement

 

This completes your application process; make sure you have these additional documents with you as well:

• Business existence proof
• Income proof
• Office address proof
• Office ownership proof
• Residence address proof