Bank of India (BOI) Home Loan - Types, Features, and Documents Required

Common Features of Bank Of India (BOI) Home Loan Products

Different Types of Home Loan Products have been designed to chose from: BOI Star Home Loan, BOI Star Diamond Home Loan, BOI Star Smart Home Loan, BOI Star Pravasi Home Loan etc. Some of the common features of BOI Home Loans are:

1.  The loan is available at very competitive rates of interest, currently available in the industry.
2. Option for different EMI amounts for different periods during tenure of loan to suit customer’s repayment capacity.
3. Prepayment of Loan permitted. No prepayment charges under floating rate option.
4. Interest is calculated on daily balance basis which is of great advantage to customer as it results in lower interest amount.
5. Loan to NRI as well as Persons of Indian Origin.
6. Simplified application form / procedures for convenience of customers, and speedy approvals.
7. Free Personal Accident Insurance cover (Renewed at banks discretion).
8. Life Insurance Cover to borrowers for Loan Protection (optional).

1. BOI Star Home Loan

Eligibility

Salaried employees, Professionals, Self-employed persons. Requests are also considered from NRI, PIO, HUF, and Proprietary Firm, Partnership firms and corporate.

Purpose

1. To purchase / construct house/flat
2. To renovate / extend / repair existing house/flat.
3. To purchase a plot of land for construction of house
4. Takeover of home loan from other banks / Financial Institutions - subject to conditions.

Quantum of Loan

1. For construction / purchase of a house / flat:  Rs. 3 crores (Rs. 5 crores in major metros viz. Mumbai, Kolkata, New Delhi and Chennai).
2. Repairs / renovation / extension to house / flat: Rs. 50 lakhs.
3. Purchase of a plot: Rs. 3 crores.
4. Purchase of household articles along with home Loan for furnishing the house / flat: 15% of Home Loan amount Maximum Rs. 5.00 lakh is offered under Secured Personal Loan with same Rate of Interest as applicable under Home Loan with maximum repayment period of 10 years including moratorium period, if any.
5. Installation of Solar PV panels: Home Loan Rate of Interest, as per limit fixed by the Bank.

Processing Charges / Other Expenses

1. Rate of Interest

1. Floating Category Up to 30 years (CARD RATE)
2. For Women : 1 Year MCLR + 0.15 %
3. For Others : 1 Year MCLR + 0.20 %

2. Processing Charges

1. Individuals: 0.25 % of loan amount - Min. Rs. 1,000/- Max. Rs. 20,000/-
2. Partnership firms and Corporate: 2 times that of applicable to individuals.
3. Rural areas: 75% of that applicable to individuals in respect of loan availed by borrowers from rural branches.

Margin Money

1. Loan upto Rs. 20 Lakhs: For 1st House - 15%; For 2nd or Subsequent Home Loan / House / Flat - 20%
2. Loan up to Rs. 75 Lakhs: 20% (first and subsequent loans)
3. Loan above Rs. 75 Lakhs: 25% (first and subsequent loans)

Note on Margin Money:

• Where cost of house exceeds  Rs.10 lakhs - Margin is calculated on pure cost of the house / flat excluding stamp duty, Registration and other documentation charge.
• For houses with cost not exceeding Rs.10 Lakhs - expenses towards stamp duty, registration and other documentation charge can be included in the project cost.

Repayment

Highly flexible - maximum 30 yrs. including moratorium period upto 36 months (max.) in monthly installments, including Bank’s approved projects. Loan to be normally repaid before date of retirement in case of salaried persons and before attaining 70 years of age in case of others. Repayment upto 70 years also allowed to salaried employees having assured post retirement income.

Eligible Quantum of Loan / EMI

Calculation of quantum of loan is related to Income / repayment capacity of proponent / borrower

1. Salaried Employees: 72 times of gross monthly salary or 6 times of gross annual income based on I-T Returns.
2. Self-employed / Professionals etc.: 6 times of Gross annual income based on I-T Returns.
3. HUF / Proprietorship / Partnership Firm / Company:
4. 6 times of cash accruals (PAT+ Depreciation) as per Balance Sheet /P&L Account.

Note:

• In case of Individuals, Net Take Home pay (NTH) / income (net of all deductions including EMI of Proposed loan) is stipulated as under:  Gross Monthly Income up to Rs.1 Lakh NTH Minimum - 40% Gross Monthly Income over Rs.1 Lakh up to Rs. 5 Lakhs NTH Minimum - 30% Gross Monthly Income over Rs. 5 Lakh NTH Minimum - 25%.
• In case of HUF / Proprietorship / Partnership firm / Company: DSCR should be minimum 1.5.

Security

Mortgage / Equitable Mortgage (1st charge) on land / flat / house. Third Party guarantee (if mortgage could not be created before or at the time of disbursement).

Special Features

1. Free Personal Accident Insurance cover for the 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).
2. 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.
3. Facility for step up / step down EMI.
4. Inclusion of notional rental income in case of 2nd House and also Employees staying in Staff Quarters.
5. Inclusion of Income of Close relatives for enhanced loan.
6. Tax Benefit on Interest and Installments repaid in Home Loans.
7. Facility for 100% loan irrespective of stage of construction OR Bridge Loan subject to conditions.
8. RATING EXERCISE: The proponent will be eligible for loan subject to obtention of minimum marks or minimum entry level norm fixed by the bank.

Documents Required for BOI Star Home Loan

Apart from filled in application, following documents are required to submit:

Common for All Applicant

1. Two passport size photo of Applicant and Co-Applicant (if applicable) duly signed on infront of bank officials; If guarantor is there, his / her photo also required.
2. Two years IT Return
3. Identity Proof (Aadhaar Card OR Passport OR Driving License OR Voter ID OR PAN Card)
4. Address Proof (Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
5. Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

For Salaried employees

1. Income Documents - 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit

For Self-Employed

1. Business proof such as VAT / service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile