Bank of India - Home Loan Details

STAR HOME LOANS :

· Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well as for renovation/ repair/alteration/addition to house/flat, furnishing of house.
· Maximum loan amount is Rs.300 lacs and repayment ranges upto 20 years, with reasonable margin and nominal processing charges. No commitment /administrative charges.
· The loan is available at very competitive rates of interest, currently available in the industry.
· Option for different EMI amounts for different periods during tenure of loan to suit customer’s repayment capacity.
· Prepayment of Loan permitted
· Interest is calculated on daily balance basis which is of great advantage to customer as it results in lower interest amount.
· Loan to NRIs as well as Persons of Indian Origin.
· Simplified application form/procedures for convenience of customers, and speedy approvals.
· Free Personal Accident Insurance cover
· Life Insurance Cover to borrowers for Loan Protection(optional)
· please visit our nearest Branch and avail loan to own your dream home


Eligibility
Salaried employees, Professionals like Doctors, Lawyers, Engineers, Chartered Accountants, Self-employed persons. Requests are also considered in special cases from Group of individuals, NRIs, PIOs, HUF, Prop. Firm, Partnership firms and corporate.
Purpose
To purchase/construct house/flat
To renovate/extend/repair existing house/flat.
To purchase a plot of land for construction of house.
To acquire household articles along with the house/flat-for furnishing the house/flat.
Quantum of Loan
For construction/purchase of a house/flat-Rs.300 lacs
· Repairs/renovation/extension/addition to house/flat - Rs.20 lacs
· Purchase of a plot - Rs.30 lacs
· Purchase/acquire household articles for furnishing the house/flat - Rs.1.00 lac. (15% of Home Loan amount)
Minimum size of Housing Loan:-
At Metro and Urban Centres :-Rs. One Lakh
At Rural and Semi Urban Centres :-No minimum size of loan.
Processing charges
One time @ 0.55% of loan amount min. Rs. 1000/- and max. Rs. 5000/-
Margin
For Loan upto Rs.10 Lacs – 15% For Loan over Rs.10 Lacs – 20%
Note : Cost incurred by the proponent in the form of land already purchased/acquired by him/her (from their own sources) can be accepted as part of above said margin at the request of proponent. Liquid securities such as Banks TDR,NSC,KVP etc., can also considered as Margin, ensuring higher quantum of loan.
Repayment(can be customised)
Highly flexible - maximum 20 yrs. including moratorium period of 18 months (max.) in monthly installments.Repayment will start on completion of construction/purchase of house/flat or 18 months after first disbursement, whichever is earlier.
Eligible Quantum of Loan/ EMI
Calculation of quantum of loan is related to Income/repayment capacity of proponent/borrower.
Salaried Employees :
48 times of gross monthly salary or 4 times of gross annual income based on I-T Returns.
Self-employed/ Professionals /Individuals Engaged in Trade /Commerce/Business
4 times of their Gross annual income based on I-T Returns
Chartered Accountants
5 times of Gross annual income based on I-T Returns.
Doctors
6 times of Gross annual Income based on I-T Returns
HUF/Proprietorship /Partnership Firm/ Company
4 times of cash accruals (PAT+Depreciation) as per their Balance Sheet/P&L Account
In case of Individuals:
Net take home pay/income (net of EMI of Proposed loan) should not be less than 45% of the gross monthly salary/income of applicant(s)
In case of HUF/Proprietorship/ Partnership firm/Company :
DSCR should be minimum 1.5.
Fees / Charges
No administrative fees
No commitment charge
Prepayment charges : i) No charges, if pre-payment is made from own sources of the borrower ii) 0.65% p.a. on the outstanding loan amount for remaining maturity of the loan, subject to max.2.25% of outstanding loan amount in case of take over by other bank/FI.
Other Charges : Legal Expenses/Valuation Charges/Stamp Paper Charges At actual –Loan Agreement copy charge : as applicable
Rate of Interest w.e.f 21.02.2008

Upto 5 yrs
>5-10 yrs
>10-15 yrs
>15-20 yrs
Floating Rate -Linked to floating reference rate (% p.a. at monthly rest) FOR LIMITS UPTO RS.30 LACS:
9.50
9.75
10.00
10.00
FOR LIMITS OER RS.30 LACS UPTO RS.50 LACS :
9.75
10.00
10.25
10.50
FOR LIMITS OVER RS.50 LACS :
10.50
10.75
11.00
11.25
Interest on daily reducing balances. Interest applicable to residents as well as non-residents.
Disbursement in advance
Request for 100% disbursement before completion of house/flat can be permitted subject to availability of additional security of 125% of the unsecured portion of loan amount to be disbursed.
Security
·Equitable Mortgage (1st charge) on land/flat/house. Third Party guarantee(if mortgage could not be created at the time of disbursement ).
Additional Incentives
i. 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. ii. Loan amount of Rs.100,000/-(15% of home loan - max.Rs.1 lac) for furnishing the house/flat at a rate of interest as applicable to housing loan under the scheme.Life Insurance cover to housing loan borrowers against risk of death during tenure of loan under Group Insurance Scheme in tie up with ICICI Prudential Life Insurance Co. Ltd.
Insurance cover is optional. Low/ affordable premium rates.
Insurance cover at a discounted rate in case of younger joint borrower.
Bank will grant loan for meeting the premium amount payable upfront (single premium). Loan for premium will increase EMI only marginally.
Avoids home loan burden on the family as home loan comes with Life Insurance cover. Protection against loan amount.
Scheme is simple and hassle free.
Higher non-medical limit: Age upto 45 years : Rs. 10 lacs, Age above 45 years : Rs. 8 lacs.
Insurance premium is eligible for tax benefit u/s 80 C and claim proceeds are tax free u/s 10(10D), as per prevailing Income-tax laws
Others
Substantial Tax benefits available (as per applicable Income-tax laws) on:-
Repayment of Installmentsof Housing Loan
Payment of interest on Housing Loan