|
0
|
50L
|
100L
|
150L
|
200L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
5
|
10
|
15
|
20
|
25
|
30

Total EMI

49,919

Total Interest

69,80,559

Total Payments

1,19,80,559

Break-up of Loan Amount
Created with Highcharts 4.2.2 50,00,000 69,80,559 Total Interest Principal Loan Amount
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About Bank of India Home Loan

Bank of India ranks among one of the leading financial institutions in India. It is dedicated to providing Home Loans to help its customers own a house. The entire Home Loan procedure at Bank of India is simple and hassle-free. Various Home Loan offers and attractive schemes are offered by the bank to meet the varied requirements of the borrowers.

The housing loan from Bank of India can be used to purchase a new house/flat or to upgrade the existing house. The house can act as a security against the Home Loan. Bank of India believes in guiding its customer throughout the Home Loan procedure with its best customer care service.

Key Highlights of Bank of India Home Loan

Features

  • The Home Loans at Bank of India can be availed by salaried employees, self-employed individuals, and self-employed professionals.
  • The special rate of interest on housing loan is offered to women borrowers
  • The minimum age required to apply for the loan is 21 years
  • The property that a borrower is planning to purchase acts as security for the Home Loan.
  • The maximum Loan to Value (LTV) ratio offered by the Bank of India is 80% of the cost of the property.
  • The maximum Home Loan tenure is 30 years
  • The interest rates on a Home Loan at Bank of India start from 8.85% for women borrowers and 8.90% for other borrowers.

Processing Fees

The Bank of India charges the following processing fees on Home Loans:

Processing Fees for BOI Star Home Loan/ BOI Star Smart Home Loan/ Star Pravasi Home Loan Scheme/ Star Top-Up Home Loan

For individuals: 0.25% of the sanctioned loan amount (minimum 1,500 and maximum 20,000) + GST

For partnership firms/ corporate: Double that of the individuals, i.e., 0.50% of the sanctioned loan amount (minimum 3,000 and maximum 40,000) + GST

In rural areas: 75% of the charges applicable to individuals (minimum 1,500 and maximum 20,000) + GST

NIL till 30.06.2019

Processing Fees for BOI Star Diamond Home Loan

50,000 or maximum as per the Star Home Loan product (whichever is higher)

Special Schemes 

Special Home Loan schemes are offered by Bank of India to the special category of borrowers such as women borrowers, senior citizens, NRIs, and so on. Some of the popular loan schemes of the Bank of India are mentioned below:

  • BOI Star Home Loan
  • BOI Star Smart Home Loan
  • Star Pravasi Home Loan Scheme
  • BOI Star Diamond Home Loan
  • Pradhan Mantri Awas Yojana (PMAY)

Bank of India Home Loan EMI Calculator

An estimation of the Home Loan equated monthly instalment (EMI) gives you a clear idea to channelise your finances as per the monthly expenses. The online EMI Calculator is of great help to determine the EMI amount you will have to pay against the Home Loan. The Bank of India Home Loan EMI Calculator is precise and instant as well. It helps you to reduce the financial stress as you are aware of the EMI amount you will have to pay prior to applying for the Home Loan. In case the EMI amount is higher than the monthly budget, you can adjust the Home Loan amount to arrive at affordable EMI. The borrower will have to enter important loan parameters such as loan amount, interest rate, and loan tenure to arrive at the monthly EMI.

The monthly fixed amount that a borrower pays for a fixed tenure towards the repayment of the loan is EMI. This amount is to be paid by the borrower on a fixed date every month.

The maximum Home Loan tenure at Bank of India is 30 years. The lowest EMI at Bank of India is 780 per lakh at the rate of interest of 8.85%. Bank of India provides affordable Home Loan interest rate to encourage purchasing and owning of a house.

Results of Bank of India Home Loan EMI Calculator at different tenures and amounts at 8.85% interest rate.

Loan Amount

Loan Tenure

 

15 years

20 years

30 years

25,00,000

25,134

22,253

19,846

50,00,000

50,268

44,505

39,693

75,00,000

75,402

66,758

59,539

1,00,00,000

1,00,536

89,010

79,385

The above table gives a clear idea of the importance of the Home Loan tenure. The EMI amount increases or decreases as per the Home Loan tenure. The longer the loan tenure, the lower your EMI will be even if the interest rate is the same. So if you apply for a Home Loan for a duration of 30 years, your monthly EMI will be less but your overall interest outgo will be more. But if you apply for the Home Loan for a duration of 15 years the EMI amount will be high but the interest outgo will reduce. Thus, it is very important to carefully choose the right Home Loan tenure to meet your requirements.

The EMI is made of principal component and an interest component. With every EMI the borrower pays the principal amount gets reduced even if the EMI is constant. The proportion of principal and interest component changes with every EMI. The principal repayment increases and interest component reduces with the payment of each EMI against the Home Loan.

The below-mentioned table uses the MyMoneyMantra EMI Calculator to calculate the interest on the Bank of India Home Loan at various loan tenures. 

Assuming the Home Loan amount is 1 Lakh at the rate of interest of 8.85%

  5 years 10 years 15 years 30 years

EMI when loan amount is 1 lakh @ 8.85% interest rate

2,069

1,259

1,005

794

Total amount payable to bank (principal + interest)

1,24,114

1,51,038

1,80,965

2,85,787

Interest payable over the loan tenure

24,114

51,038

80,965

85,787

The above table gives a clear understanding of the EMI amount and Loan tenure. The interest outgo increases for the longest tenure Home Loans.

For example, if you apply for the Home Loan of 1 Lakh for a tenure of 30 years, the EMI will be 794, but the total interest outgo will be 85,787. However, if you apply for the same amount for a tenure of 5 years, the EMI will be 2069 but the overall interest will be 24,114. The borrower should consider all the factors while deciding the Home Loan tenure. It is very important to choose the right Home Loan tenure to save considerable interest outgo.

Bank of India EMI Calculator Formula

The formula used by the EMI calculator is P*r* (1+r)^n/([(1+r)^n]-1)

Here, for Bank of India Home Loans:

P = Loan amount which can go up to 5 Crores

r = Rate of interest/month, which starts at 8.85% at present

n = tenure in months, which can be maximum 360 months for Bank of India Home Loans

Factors Affecting Bank of India Home Loan EMI

  • Loan amount: The Home Loan amount plays a vital role in determining the Home Loan EMI the borrower needs to pay to the bank each month till the complete payment of the Home Loan. The higher the loan amount the higher will be the EMI amount as well. Bank of India provides the Home Loan of up to Maximum 5 Crores.
  • Interest rate: The rate of interest charged on the Home Loan amount has an impact on the EMI amount. The higher the rate of interest levied by the bank the higher the EMI amount will be. The minimum rate of interest on the Home Loan at Bank of India is 8.80% for women and 8.85% for other borrowers. It is important to study all the parameters and do complete research before finalising a lender for your Home Loan.
  • Loan tenure: The Home Loan tenure is the period within which the borrower should repay the Home Loan in full. The Home Loan tenure is decided based on the borrower's age at the time of applying for the Home Loan. The maximum Home Loan tenure at Bank of India is 30 years. The longer your Home Loan tenure the lower the monthly EMI amount.
  • Occupation of the borrower: Salaried individuals have an advantage of getting a comparatively lower interest rate of Home Loans as compared to self-employed individuals.
  • Type of loan opted for: The different Home Loan interest rates are offered at Bank of India depending upon the type of loan a borrower is opting for such as a Home Loan with an overdraft facility, floating rate Home Loan or fixed rate Home Loan.
  • Existing bank customers:Existing customers have an advantage over non-existing customers as the Bank of India offers special rates and discounts to its existing account holder taking into consideration their past relationship with a bank.

Tips to Decide the Right Amount of EMI

  • Decide the Home Loan amount you need to borrow: An estimation of Home Loan amount prior to applying for the Home Loan is a must. It gives a clear idea to the borrower about the amount they are eligible for. The Home Loan amount is determined based on the property value and repayment capacity of the borrower. It is advised to opt for minimal Home Loan amount it is a long term loan. The bank does not finance the entire property. The LTV depends upon the market value of your property and your eligibility. You will need to fund the property with the available funds.
  • Take into consideration all your current obligations: Before taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your Bank of India Home Loan eligibility: The Home Loan offered by Bank of India is based on the assessment of the property value as well as repayment capacity of the borrower. The repayment capacity of the borrower is analysed on the basis of their monthly income. The LTV of up to 80% is provided by the Bank of India on the Home Loan. The rest 20% has to be arranged by the borrower from their own sources.
  • Fixed Income to Obligation Ratio (FOIR) is one of the most important parameters that determine the maximum EMI a borrower can pay against the Home Loan. All the current obligations such as EMI, credit card payments, etc. are taken into account along with the fixed income of the borrower to determine FOIR. The proportion of fixed obligations to income gives FOIR. The FOIR helps Bank of India to assess the eligible Home Loan amount. The minimum FOIR of 0.65 is must to be eligible for the Home Loan at Bank of India. Paying the short-term loans with high EMI can also help the borrower to increase the FOIR.

Change in EMI with a Change in Interest Rate

  • The EMI on the Home Loan does not change unless the borrower request for the same. In such case, a nominal charge may be levied by the bank on a change of EMI request.
  • Due to some conditions if the rate of interest on the Home Loan increases, the bank will also have to increase the rate of interest. The bank will keep EMI constant but increase the Home Loan tenure. But if the Home Loan tenure is beyond the permissible limit the bank may have to increase the Home Loan EMI as well.
  • In the case of partly disbursed loans under tranched EMI scheme, the EMI will increase with each preceding loan disbursement.

Change in EMI on Prepayment

  • The borrower can opt for prepayment of the Home Loan under floating rate scheme.
  • In case the borrower makes a prepayment on the outstanding principal amount. The Home Loan amount reduces and the borrower can choose to either keep the EMI constant or reduce the Home Loan tenure. This will help the borrower to pay the loan faster. The borrower can also opt to keep the loan tenure as it is and reduce the EMI amount.

Importance of Calculating EMI before Taking a Bank of India Home Loan

Some of the benefits of calculating EMI on the Home Loan prior to approaching the bank are as follows:

  • If the EMI amount is more than your monthly budget, you can choose the lower Home Loan amount for affordable monthly EMI.
  • Knowing the EMI well in advance will help you to plan the finances accordingly and reduce the financial stress.
  • On the basis of the EMI amount, you can decide on making the prepayment of the Home Loan.

How to Use MyMoneyMantra EMI Calculator to Calculate Bank of India Home Loan EMI?

It is very easy to calculate the Home Loan EMI with the help of the EMI Calculator on MyMoneyMantra. Following are the steps to calculate EMI using our EMI Calculator:

  • Log on to the MyMoneyMantra's website
  • Click on the EMI Calculator under the finance tools tab
  • Now, enter the interest rate, loan amount, and tenure of repayment of the loan
  • After entering the loan parameters, you will instantly get the monthly payable EMI amount on the Home Loan.
  • You can also change the parameters to find the best suitable EMI as per your budget
  • You can also apply for the Bank of India Home Loan online at MyMoneyMantra

Benefits of Using MyMoneyMantra's EMI Calculator

The online EMI Calculator of MyMoneyMantra offers the following benefits to the user:

  • Anytime and anywhere access
  • Accurate results
  • Saves you from time-consuming and complex calculations
  • Helps in the financial planning process
  • You can use an online EMI calculator for every loan

FAQs on Bank of India Home Loans

Can I apply for a joint Home Loan at Bank of India?

Yes, you can apply for the joint Home Loan at Bank of India. Applying for the joint Home Loan with your spouse or any other eligible co-applicant will increase your repayment capacity and increase your Home Loan eligible too.

Does the Bank provide PMAY scheme based Home Loan?

Yes. The bank offers Pradhan Mantri Awas Yojana (PMAY) based Home Loan.

What is the current 1- years MCLR of Bank of India?

The current 1 year Marginal Cost of Funds based Lending Rate (MCLR) of the Bank of India is 8.70% (as updated on 10.05.2019).

Does Bank of India offer Home Loans to NRIs?

Yes. The Bank of India offers Home Loans to Non-Resident Indians (NRIs) as well as Persons of Indian Origin (PIOs).

How does the bank calculate interest on Home Loans?

Bank of India Home Loan interest is calculated on daily reducing balance basis, providing an added benefit to the customer as it leads to lower interest amount.

What is the eligibility required for Star Diamond Home Loan?

High Net worth Individuals (HNIs), Firms or Corporates for residential accommodation of their directors/partners are eligible for Star Diamond Home Loan provided that the applicants are earning minimum average gross income of 1 Crore or above during the last three years as per their audited balance sheet  or ITR.

In which countries does Bank of India provide Star Diamond Home Loan?

Star Diamond Home Loan is available in the following metros and major cities only:

  • Mumbai
  • New Delhi and Delhi NCR
  • Chennai
  • Kolkata
  • Bangalore
  • Ahmedabad
  • Hyderabad
  • Pune

What is the minimum loan amount available under BOI Star Smart Home Loan?

Salaried applicants can avail a minimum of 5 Lakhs and other applicants can get a minimum of 10 Lakhs as loan amount under BOI Star Smart Home Loan.

Latest News on Bank of India Home Loan

Bank of India non-operational Executive Chairman seeks higher levels of operational freedom

Mr G Padmanabhan, Bank of India's non-operational Executive Chairman, raised the issue of seeking higher levels of operational freedom for the public sector banks while speaking at the banking conclave organised by the Centre for Economic Policy Research. He feels that private banks have a higher degree of freedom to tackle bad loans as compared to the nationalised banks. It prevents these banks from taking tough decisions in matters concerning the recovery of NPAs.

Bank of India has reported an 8% increase in net profit in Q1 FY19

In spite of the mounting NPAs in the banking sector, Bank of India has performed creditably in the first quarter of the financial year 2018-19. Bank of India has reported an 8% increase in the net profit to 95.11 Crores for the quarter ended 30 June 2018. It is a positive trend considering the fact that the bank registered a massive loss of 3969.27 Crores in the preceding and concluding quarter of 2017-18.

Concessions are around the corner for Bank of India Home Loan applicants

The festive season has arrived in India. It is not only a period of enjoyment for the people but also an excellent opportunity to avail some attractive offers from banks. Most of the banks start waiving the processing fees and other charges during the festive season. You can also expect Bank of India to do the same as it does so every year at around this time of the year.