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Bank of India Home Loan Interest Rates 2020

Bank of India Housing Loan Interest Rate

Last Updated 01st Sep 2020

Current Bank of India Home loan interest rates for Sep 2020 starts at 6.85% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.25%, Minimum ₹ 1,500 and Maximum ₹ 20,000.

Loan AmountBank of India Repo Rate Home Loan Rate
Upto ₹ 50 Lakh6.85%
₹ 50 Lakh - ₹ 1 Cr6.85%
₹ 1 Cr - ₹ 3 Cr6.85%
Above ₹ 3 Cr6.85%

Bank of India Home Loan Interest Rates

Bank of India offers various products on home loan. Bank of India home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Bank of India Home Loan Interest Rate starts from 6.85%.
  • Bank of India charges a processing fees of Upto 0.25%, Minimum ₹ 1,500 and Maximum ₹ 20,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Bank of India is ₹ 655 per lakh offered at the lowest interest rate of 6.85% at the longest loan tenure of 30 years.
  • Bank of India allows prepayment of home loans with Nil charges on floating rate loans.
  • Bank of India has an average customer rating of 2.5/5.0 from customers who have taken a home loan from the bank.

Bank of India Home Loan Rate

Current Bank of India home loan interest rates are in the range of 6.85% to 7.75%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 6.85%. The table below gives the interest rates on various housing finance schemes of Bank of India.

Bank of India Home Loan Scheme Interest Rates
Bank of India Repo Rate Home Loan6.85% - 7.75%
BOI Star Smart Home Loan6.85% - 7.75%

Bank of India Bank Home Loan Charges

Bank of India Home Loan Processing Fee

Bank of India home loan processing charges are upto 0.25% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 1,500 and has capped the maximum processing fees at ₹ 20,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Bank of India housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Bank of India Home Loan Prepayment

Bank of India charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Bank of India for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Bank of India, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Bank of India.

Bank of India Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • 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
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Home Loan Bank of India Schemes

Bank of India offers customized schemes for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Repo Rate Linked Home Loan

  • This loan is available for individuals who want to buy a residential property through a home loan.
  • Existing home loan borrowers can also choose to transfer their loan under this scheme.
  • As per RBI guidelines, it is mandatory for all banks to link their loan interest rates with the repo rate.
  • The scheme is available for new borrowers as well as existing borrowers.
Key Loan Terms
  • Home loan available at the age of The minimum age required to avail the loan is 18 years, while the maximum age is 60 years.
  • Loan amount that you can borrow ranges from ₹ 30 Lakh to ₹ 5 Cr
  • Option to apply for a maximum ltv of 85% of value of the property
  • Housing loan for a maximum period of 30 years

Bank of India Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Bank of India if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Bank of India Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)6.85% to 7.75%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • Bank of India Home Loan Interest Rate: 6.85% to 7.75%
  • Processing Fee payable to Bank of India: Upto ₹ 10,000. Current offer for processing fee is Upto 0.25%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 655 for a 30 years ₹ 1 Lakh loan at 6.85% (lowest rate, longest time period) to ₹ 2,016 for a 5 years ₹ 1 Lakh loan at 7.75% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 30,942 for 5 years loan to ₹ 1.46 Lakh for 30 years loan

Bank of India’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Bank of India.

FAQs

What is Bank of India Home Loan interest rate?

Bank of India Home Loan interest rate ranges between 6.85% to 7.75%.

Why should I opt for balance transfer to Bank of India?

Bank of India offers competitive Home Loan rates with the best EMI of ₹ 655 per lakh availed at a low-interest rate of 6.85% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 655 per lakh, you should consider the option for a loan transfer to Bank of India from your existing bank. EMIs can be calculated through Bank of India Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Bank of India?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Bank of India housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Bank of India housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Bank of India housing loan rate of interest change in the future?

  • Bank of India offers RBI Repo Rate linked Home Loan which starts at 6.85%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Bank of India Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 2.85% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Bank of India Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Bank of India Repo Rate linked Home Loan rate will cut from 6.85% to 6.7%.

What is the current Bank of India Home Loan rate?

The current Bank of India Home Loan rate starts from 6.85% with a processing fee of Upto 0.25%, Minimum ₹ 1,500 and Maximum ₹ 20,000

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Bank of India Home Loan News - Sep 2020
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  • 2019-05-17 : Bank of India posts Rs. 252 crores profit on lower provisioning
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*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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