Bank of India Home Loans Rates

 

Bank of India home loans are also known as Star Home loans. Bank of India home loan rates are one of the most affordable rates that are available in the home loan market in India.

About Bank of India home loans rates

The table given below will help you get a fair idea about Bank of India home loan rates:

 

Rate of Interest with effect from 06.11.08		Upto 5 yrs	5-10 yrs Rate	10-15 yrs	15-20 yrs
	Floating Rate -Tied with floating reference rate (% p.a. at monthly rest) for limits upto Rs.30 lakhs:	8.75	9.00	9.25	9.25
	Floating Rate -Tied with floating reference rate (% p.a. at monthly rest) for limits upto Rs.30 lakhs:	9.50	9.75	10.00	10.25
	For Limits Over Rs.50 Lacs :	10.25	10.50	10.75	11.00
	Interest is calculated on daily reducing balance basis. These interest rates are applicable to residents as well as non-residents.

Disbursement beforehand/prepayment

Request for 100% prepayment prior to completion of flat/house can be approved provided supplementary security is available to the extent of 125% of the unsecured part of the loan amount to be paid.

 

Security on the loan ·

Given below are the two types of security or pledge that can be furnished against the loan:

 

• Equitable Mortgage (1st charge) on flat/land/house.
• Third Party guarantee (if mortgage could not be originated during payment).

Processing charges on Bank of India home loans

Given below are the processing charges on Bank of India home loans:

 

• For loans up to Rs.30 lakhs lump sum @ 0.55% of loan amount - maximum Rs.10000/- and minimum Rs. 3000/-
• For loan amount above Rs.30 Lakhs up to Rs.50 lakhs – lump sum flat Rs.15,000/-
• For loan amount above Rs.50 Lakhs up to Rs.1.00 crore – lump sum flat Rs.20,000/-
• Loan amount above Rs.1.00 crore – lump sum flat Rs.25,000/-
• Loan amount above Rs.3.00 crores – lump sum flat Rs.50,000/-

For institutional borrowers and partnership firms, processing charges will be twice that of which is applicable to individuals. For rural regions, processing charges will be half of that which is applicable to individuals regarding loans taken by borrowers from the rural branches in rural regions.

Conversion Charges on Bank of India Home Loans

Given below are the conversion charges of Bank of India home loans:

 

• Switch from fixed to floating rate of interest - @0.25% p.a. on outstanding balance for the leftover maturity of the loan
• Switch from floating to fixed rate of interest - @ 0.40% p.a. on outstanding balance for the leftover maturity of the loan.

The maximum charge for the above two cases is 2.10% of outstanding balance.

Tax benefits from Bank of India home loans

Considerable tax benefits are available (in line with The Income Tax Act, 1961) on:-

 

• Interest payment on housing loans
• Installment payments on housing Loan

Charges/Fees

There are no commitment charges or administrative charges.

There are no prepayment penalties, if pre-payment is done from own funds of the borrower. There will be prepayment penalty of 0.65% p.a. on the balance due for left over maturity of the loan, depending on maximum 2.25% of unpaid loan balance when there is a take over by any other financial institution/bank.

Other charges include appraisal charges, legal costs, stamp paper fees and loan agreement copy charges.