Bank of India Home Loan Eligibility Criteria

Age of the Applicant

18 to 70 years

Eligible Salary

25,000 per month and above

Work Experience for Salaried

3 years and above

Maximum tenure

30

Minimum CIBIL Score

650

Maximum Loan on Property Value

Up to 90%

Eligibility with Co-applicant

Up to 3 earning family members may be added to get higher loan eligibility

check your eligibility

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About Bank of India Home Loan

To ensure that all its customers are able to purchase their dream homes, Bank of India provides the easiest and most hassle-free housing loan plans. You also have the assurance of being associated with one of the premium banking institutions in India. Bank of India provides different schemes to meet the various requirements of customers.

These loans are available for people who wish to buy a home/ flat/ plot, construct a new property, or even renovate/ repair/ extend an existing property. The property in question serves as security against the loan. You will be taken through each step of applying for the loan for a better experience with Bank of India.

Features of Bank of India Home Loan

  • Bank of India Home Loans are available to both salaried individuals and self -employed individuals.
  • Women Home Loan borrowers get a subsidised rate of interest on Home Loan
  • The applicant has to be at least 21 years of age in order to apply for the loan
  • The Loan to Value (LTV) ratio offered by Bank of India is up to 80%
  • You can avail repayment tenure of up to 30 years
  • Bank of India offers different Home Loan schemes
  • You can opt for prepayment of loan permitted without paying any charges under floating interest rate based Home Loans.
  • The bank also offers housing loans to Non-Resident Indians (NRIs) as well as Persons of Indian Origin (PIOs).
  • You can get free Personal Accident Insurance cover by the bank which is renewed at the bank's discretion.
  • You can also opt for a Life Insurance Cover for Loan Protection

Bank of India Home Loan Eligibility Criteria

There are different criteria that determine whether or not you are eligible for a Bank of India Home Loan. These factors include your age, monthly income and expenses, and so on. You also have the option of showing the combined income of you and your spouse to increase your eligibility for the loan.

Here are the factors to be eligible for Bank of India Home Loan:

  • Salaried employees, self-employed individuals, self-employed professionals, HUF, partnership firms, proprietary firms, and corporate can avail Bank of India Home Loans.
  • Indian residents, NRIs, and PIOs, everyone can apply for the loan
  • A steady and regular income source is necessary to avail Bank of India Home Loans
  • High Net worth Individuals (HNIs) are also eligible under Star Diamond Home Loan
  • The applicant may have to arrange a margin in the range of 15% to 25%, depending on the type of loan and amount applied for.
  • The maximum tenure for repayment is 30 years including the holiday or moratorium period
  • You should satisfy the below-mentioned minimum net take home (NTH) pay criteria after all deductions including the EMI of the proposed
    • Individuals
      • Gross monthly income up to 1 Lakh: Minimum NTH pay should be 40%
      • Gross monthly income over 1 Lakh up to 5 Lakhs: Minimum NTH pay should be 30%
      • Gross monthly income over 5 Lakhs: Minimum NTH pay should be 25%
    • Non-Individuals: DSCR should be minimum 1.5 Lakhs
    • Under Star Diamond Home Loan: High Net worth Individuals/ Directors/ Firms/ Corporates must have a minimum average gross income (during the last 3 years) of 1 Crore according to the audited balance sheet/ ITR.
    • For BOI Star Smart Home Loan: Existing SB/CD customers having an average balance of 5,000 for the last 1 year & new customers who open a new SB or CD account with 5,000 as an opening balance, are eligible. Present or prospective salaried individuals whose salary is credited to the branch of Bank of India & proposed repayments are to be done from this account & all other self-employed professionals like Doctors, Chartered Accountants, Engineers, Lawyers, and business persons having regular income source and maintaining SB or CD Account throughout the loan tenure are also eligible.

Factors Affecting Bank of India Home Loan Eligibility

There are several factors that affect your eligibility for a Home Loan. These factors include:

Effects of Age on Bank of India Home Loan Eligibility

When you are younger, it means that you have a longer time to repay the loan. This allows you to get a higher amount as loan and also improves your eligibility to avail a loan with Bank of India. In order to get a Home Loan with Bank of India, the minimum age of the individual should be 21 years at the time that the loan is disbursed. You can get a loan for a period of up to 30 years depending upon the age of the borrower when the tenure. For both salaried and self-employed individuals, the tenure should not be more than 30 years.

Effects of Salary and Nature of Employment on Bank of India Home Loan Eligibility

Based on your salary: The net monthly income that you take home after deductions such as gratuity, PF, ESI, and so on, determines your eligibility for the loan. This amount allows you to calculate how much EMI you will be able to accommodate in your monthly expenses. For instance, you will be eligible for a loan of 25.82 Lakhs or 40.94 Lakhs depending upon your age if you are drawing a salary of 25,000 each month. This is assuming that the value of the property is 40 Lakhs and that you are getting an interest rate of 8.85%. In case your salary is 75,000, you can avail a loan of 51.64 Lakhs to 81.88 Lakhs with the rest of the parameters remaining the same.

Employment type: Whether you are a salaried individual or a self-employed individual plays an important role in determining your eligibility for a BOI Home Loan. If you are salaried, it is a must that you have worked with the same company for the last one year at least. In the case of self-employed individuals, a minimum experience of 5 years is a must in their field of work.

Effects of Value of Property on Bank of India Home Loan Eligibility

Property value: For any Home Loan at Bank of India, the property that you buy, construct or renovate is provided as security. Therefore, the value of this property is an important criterion in determining how much money you will get as a loan. It also determines whether the loan will be sanctioned or not. There are two factors that play an important role in deciding the property value. One is the market value itself and the other one is the marketability of the property. You will not be able to get the entire value of the property as loan. The bank funds a part of it and the other part must be arranged for by the borrower. Bank of India provides LTV of up to 80% of the value of the property.

Property papers: When you provide the property documents, the legal team at Bank of India determines whether they are valid and complete. Only after clearance is provided by the legal team will you be able to get an approval on your loan.

Effects of Co-applicant on Bank of India Home Loan Eligibility

If you are looking at improving your eligibility for a Bank of India Home Loan, then including your spouse or any other earning member of the family as co-applicant can be very helpful. This is because the joint income is calculated to determine the loan amount that you are eligible for.

Effects of CIBIL Score on Bank of India Home Loan Eligibility

The first thing that Bank of India or any other financial institution will check before granting you a loan is the CIBIL score. This score shows your credit behaviour. It is used as a method to check your reliability in terms of repaying any loan or credit balance. A history of all your loan repayments, Credit Card bills, and other payments is recorded in your credit report. This is analysed thoroughly to determine your credit score. If you have a high credit score, then the chances of getting a loan are also higher. If the CIBIL score is low, it shows that your past credit behaviour is unsatisfactory. In order to avail a Home Loan with Bank of India, you need to have a credit score of at least 650.

There are some common causes for a low credit score:

  • Consistent delay in repaying your existing loans or loans in the past
  • Having too many unsecured loans and fewer secured loans
  • Frequently using up your entire Credit Card limit
  • Applying for a Home Loan with multiple banks or financial institutions at one time

Effects of FOIR on Bank of India Home Loan Eligibility

Another factor that determines your eligibility for a Home Loan is the Fixed Obligation to Income Ratio (FOIR). The ratio is calculated to ensure that you are able to include an additional EMI to your current expenses with incurring a major financial burden. All your expenses including your rent, other EMIs, and so on are taken into consideration to check if you will be able to repay the EMI without any issues.

Tips to Increase Your Bank of India Home Loan Eligibility

If you feel like you are not entirely eligible to get a Home Loan from Bank of India, there are some tips that will help you increase eligibility and maintain it as well:

  • Make sure that you clear any existing dues including short term loans
  • Try to include all your income sources in your loan application such as rent from another property.
  • Include an earning family member as a co-borrower
  • Make the most of your bonuses and benefits offered in your company
  • Ensure that all your loans are repaid on time

Why Use Home Loan Eligibility Calculator?

There are several benefits of using a Home Loan Eligibility Calculator. To begin with, it is a very simple and convenient tool to use. You will be able to avoid any chances of loan rejections that may affect your credit score. In addition to this, using the Home Loan Eligibility Calculator has the following benefits:

  • You can use it on the go and save a lot of time which you would otherwise spend by physically visiting the bank to check your eligibility.
  • You can avoid the stress and the chances of errors with manual calculations of factors affecting eligibility.
  • You have the option of comparing different loans and choosing one that suits you the best
  • This tool is completely free and can be used as many times as you need

How to Use Online Eligibility Calculator to Calculate Your Bank of India Home Loan Eligibility?

In order to ensure that you are eligible for a Bank of India Home Loan, various factors are taken into consideration such as your income, nature of employment, the tenure that you are expecting and the loan amount that you want. There are various eligibility calculators available online, but all of them use similar parameters for the calculation. To calculate your eligibility for the loan using the online Eligibility Calculator, you have to follow a few simple steps mentioned below.

  • Open a Home Loan Eligibility Calculator online
  • Enter your gross monthly income, loan tenure, interest rate, and other monthly EMIs (if any)
  • Once the details are provided, you will be able to view the loan amount that you are eligible for.

Documents Required for Bank of India Home Loan

For Salaried Employees

  • Duly filled application form for Home Loan
  • 2 recent photographs of the applicant in passport size
  • ITR records from the last 2 years
  • Proof of identity such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of residential address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport
  • Proof of income such as last 6 months' salary slip, Form 16 of 2 years, Bank statement of at least the last 6 months that reflects salary being credited or EMI being debited.
  • All the legal, property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, copy of the approved plan of construction or extension.

For Self-Employed

  • Duly filled application form for Home Loan
  • 2 recent photographs of the applicant in passport size
  • Proof of identity such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of residential address such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport
  • Proof of Business like VAT/ service tax registration/ company's incorporation details Address proof of the business, accounts and balance sheets showing profit and loss statements which have been certified by a CA, the proof of the business's existence a copy of the partnership deed and business profile
  • All the legal property-related documents like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, copy of the approved plan of construction or extension.

Types of Bank of India Home Loan Schemes and Their Eligibility

BOI Star Home Loan

  • This product is designed for all resident individuals, NRIs, and PIOs
  • This loan can be availed to purchase or construct a new home/ flat, purchase a resale house, carry out repairs/ renovations/ extensions of existing house/ flat.
  • The maximum repayment tenure is 30 years
  • The maximum loan amount offered under this scheme is 5 Crores in metro cities (Delhi, Mumbai, Chennai, and Kolkata) and 3 Crores in other cities.
  • The maximum amount is 50 Lakhs for repairs/ extensions/ renovations of the existing house/ flat.
  • The maximum amount to purchase a plot is 3 Crores
  • You can also get a loan of up to 5 Lakhs for purchase of household articles along with the Home Loan at the applicable Home Loan interest rate. The maximum repayment tenure is of 10 years, which includes moratorium period (if any).
  • Availability of step up and step down EMI options
  • Prepayment of loan is permitted without charges for floating rate loans
  • Free personal accident insurance cover and optional loan insurance cover are available

BOI Star Diamond Home Loan

  • The loan can be availed to buy a property or residential house from the director or the partner of the company.
  • Applicants with high net worth are eligible
  • Applicants must have a minimum average gross income of 1 Crore during the last three years as per audited ITR/ Balance Sheet.
  • Loan available only in: New Delhi, Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad, and Pune.
  • Applicant must arrange a minimum margin of 25% of the cost of the property
  • Loan term: 15 years or maximum age of borrower reaching 75 years (whichever is earlier)
  • Loan amount: Minimum 5 Crores with no upper limit.

BOI Star Smart Home Loan

  • It is a Home Loan Overdraft facility
  • An individual having an SB/CD account recently with Bank of India with a minimum balance of 5,000 can also apply for this Home Loan.
  • The Star Smart Home Loan can be availed by the salaried staff of the bank, and current as well as prospective employees. The salary of these employees should be credited in to the Bank of India Account towards the repayment of the Home Loan. It is not mandatory to maintain a minimum account balance for such accounts.
  • This loan can also be availed by self-employed professionals such as doctors, engineers, lawyers, chartered accountants, and business professionals. The steady income is must to apply for this loan.
  • The account with Bank of India must be in the operating state throughout the loan period.
  • Loan amount for salaried individuals: Minimum 5 Lakhs
  • Loan amount for self employed individuals: Minimum 10 Lakhs
  • The maximum loan amount available is 3 Crores for plot purchase, and 50 Lakhs for renovation/ repair/ extension of a house/flat.
  • The tenure available to repay the loan is of maximum 30 years

Star Pravasi Home Loan Scheme

  • NRIs with a valid Indian passport and PIOs having a foreign passport are eligible
  • The applicant must have a regular source of income
  • The loan can be availed for house/flat purchase or construction, renovation/ repairs/ extensions of the existing house, plot purchase to construct a house thereon, and Home Loan takeover.
  • Applicant should produce all income proofs to authenticate the source of income and establish creditworthiness.
  • It is mandatory that the co-applicants of the property are the co-owners as well
  • The loan amount available under this scheme is as follows:
    • The maximum loan amount for house/flat purchase: 3 Crores or 5 Crores
    • The maximum loan amount for the plot purchase: 1 Crore
    • The maximum loan amount for renovation/repair: 50 Lakhs

Bank of India Pradhan Mantri Awas Yojana (PMAY)

  • The eligibility criteria for this scheme are the same for all banks and other financial institutions.
  • This is a Government of India designed this credit-linked subsidy scheme (CLSS) with the maximum subsidy being 2.67 Lakhs.
  • The scheme is for the Economically Weaker Section (EWS) and Lower Income Group (LIG) up to 31.03.2022 and the Medium Income Group (MIG-I and MIG-II) up to 31.03.2019.
  • The subsidy is available for construction or purchase of house or flat
  • The maximum amount of loan offered is 4 times the gross income of the borrower with different ceilings for different categories.
  • Repayment tenure can extend up to 30 years, but subsidy on interest is available for a maximum of 20 years

FAQs on Bank of India Home Loans

How do I apply for a Bank of India Home Loan?

You can apply online on MyMoneyMantra. From the time of application, all the procedures such as checking your documents and submitting them to the bank are taken care of by our representatives. Once the application is submitted, it will be reviewed by Bank of India after which you informed about their decision on your loan application. You can also apply online through Bank of India's website, or visit the nearest Bank of India branch to apply.  

Is it possible for the rate of interest to change?

The interest rates for Bank of India Home Loans are linked to the 1-year MCLR of the bank. Any change in the MCLR will affect the interest rate of your Home Loan as well.

What is the maximum Home Loan repayment tenure at Bank of India?

With Bank of India, you can get up to 30 years as repayment tenure for Home Loans.

Can I include a co-borrower for my Home Loan?

Yes, you have the option of including any earning family member as a co-borrower provided that they are the co-owner of the property. This lets you include their income as part of your application to improve your Home Loan eligibility.

Will I get any tax benefits with Bank of India Home Loans?

Under the Indian Income Tax Act of 1961 you can avail tax benefits on the interest (up to 2 Lakhs) and the principal amount (up to 1.5 Lakhs) on your Home Loan.

Can I foreclose my Home Loan?

Yes. You can foreclose your floating interest rate Home Loan without any added fees and expenses.

Should I choose the balance transfer option?

It is a good idea to compare the EMI and the interest rate offered by Bank of India and your current bank. The current interest rate charged by Bank of India on Home Loan is 8.85% (8.80% for women) which reduces EMI to as little as 787 per Lakh. If this is lower in comparison to your existing bank, transferring balance is recommended.

Can I transfer my existing Home Loan to Bank of India?

Yes. With a simple process, you can transfer your existing Home Loan to Bank of India to enjoy lower interest rates and EMIs.

What is the benchmark used with Bank of India Home Loans?

Bank of India applies 1 year Marginal Cost of Funds based Lending Rate (MCLR) as the benchmark with its Home Loans.

Are there any benefits of making prepayments on the Bank of India Home Loans?

When you make a prepayment on your loan, the outstanding loan amount will reduce too. You have the option of retaining your current EMI and reducing the tenure or opting for the reduced EMI with a reduction in the outstanding amount.

Bank of India Home Loan News

16.10.2018: Increase of 0.05% for different loan tenors at Bank of India

An increase of 0.05% in the MCLR at Bank of India has increased it to 8.15% currently. This hike, equal to 5 basis points will be effective from 10th October 2018.

13.11.2018: Bank of India reports net losses of 1156 crore in the second quarter of 2018

In the second quarter of 2018, the Bank of India faced massive losses worth 1,156 Crore as a result of bad loans. The net profit reduced from 179 Crore in the previous year to 95 Crore in 2018. The total income of BOI stands at 10,800 as a result of 11,600 last year.

12.09.2018: Floating interest rates on Home Loans increased by almost 10 BPS by BOI

Home Loan interest rates will see a steep hike of 10 basis points (BPS) starting September 2018. This hike will increase the current Home Loan rate of interest to 8.80%, making these loans more expensive.

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