Bank of India

Bank of India Loan Against Property

Apply Bank of India Loan Against Property

About Bank of India Loan Against Property

Financial emergencies are a part of life and dealing with these financial emergencies can be difficult unless you have some savings to fall back on. Meeting expenses of a business, sudden medical issues, marriage, higher education, etc. can be tough sometimes. You might have a sizeable corpus with you, but certain financial emergencies can create a situation of panic when the amount required is much more than your savings. In such a scenario, it is very easy to feel overwhelmed by the situation, and you will be wondering where you can get the money from. For such financial emergencies, Bank of India offers Loan Against Property. Under this option, you can keep your property as collateral and get a loan from the bank to take care of your financial requirements. Moreover, you need not make any lump sum payments rather you have to repay the loan through equated monthly instalments (EMIs) over the repayment tenure as specified by the bank.

Bank of India is a public sector bank with its headquarters situated in Mumbai. Bank of India comes under the list of top 5 banks in the country. Establishes in 1906, it was nationalised by the Government of India in the year of 1969 and presently has 5100+ branches across urban, semi-urban, and rural centres. Ranked among the top banks in India, Bank of India provides its customers with attractive rates of interest and excellent customer services. The Loan Against Property provided by the Bank of India follows an easy process.

Why Bank of India Loan Against Property?

Bank of India is a public sector bank which has been ranked amongst the top 5 India banks. Being a commercial bank, it has expertise in advancing loans to its customers for varied needs.

Given below are some of the reasons why you should go for Bank of India Loan Against Property:

  • Wide network: With 5,100+ branches spread across India, Bank of India is easily accessible for customers and has earned a reputation as a reliable financial institution.
  • Extended repayment tenure: Loan Against Property from the Bank of India comes with a flexible repayment tenure which can extend up to 12 years.
  • Attractive interest rates: Loan Against Property from Bank of India are available at attractive interest rates starting from 10.35% per annum.
  • Balance Transfer: Bank of India also offers the option of balance transfer from other lenders at attractive interest rates.
  • Freedom to use the money: Money borrowed as a Loan Against Property from Bank of India can be used by the borrower for any personal or professional requirement. There is no need to inform the bank regarding the end usage of the money.

Features and Benefits of Bank of India Loan Against Property

Loan Against Property offered by Bank of India comes with the following features and benefits:

  • Multipurpose loan: Bank of India sanctions Loan Against Property for the following reasons:
    • For credit needs of commercial activity, trade, other general business or profession, and for any bona fide requirements.
    • For educational expenses of family members or relatives
    • For undertaking renovation/repairs/extension to the existing residential/commercial property
    • To purchase or construct a residential house/flat
    • To purchase a plot of land for constructing a house or premises for business or commercial use
    • To repay existing loans obtained from other banks or financial institutions
  • Who can avail the loan: The loan is available for:
    • People who are engaged in trade, commerce, and business
    • Professionals, self-employed, and individuals with high net worth
    • Salaried people
    • Proprietary firms, partnership firms, Pvt. /Public Ltd. Companies, HUFs (not partnership firms where HUF is a partner), Staff members, Societies.
    • NRIs, subject to compliance of RBI's/Bank's guidelines
  • Maximum Age Limit: This is the maximum age acceptable to the bank at the end of the repayment tenure.
    • For salaried individuals who are in permanent service: 60 years
    • For proprietary concerns/self-employed/non-salaried individuals: 70 years
  • Who cannot apply for the loan: Loan Against Property from the Bank of India cannot be availed by:
    • Developers/builders/real estate agents/promoters for real estate activities like purchasing land or construction, to sell or hold real estate stock for sale/ resale purposes.
    • The facility is not extended for speculative reasons including investing in equities
    • NBFC, Trust, and Partnership firm where HUF is a partner
  • Type of advance: The advance is available as Demand/ Term Loan, Overdraft (Reducible/Non-Reducible).
  • Type of property: You can avail a Loan Against Property from the Bank of India against your residential house, flat, the plot of land as well as commercial properties such as office, factory, warehouse, etc. The amount of loan granted by the Bank of India can also be used towards the purchase of property that is under construction in residential or commercial buildings. However, these loans are approved by the bank only after acquiring the mortgage rights on the mentioned property.
  • Multiple forms of disbursals: Bank of India Loan Against Property are disbursed in the form of term loans or reducible/non-reducible overdraft facility. In the case of a reducible overdraft facility, the drawing power of the customer is decreased every month, in order to ensure that 100% repayment of the loan is made at the end of the repayment period.
  • Collateral: Bank of India needs a legal primary mortgage charge created against the property that has been offered as the collateral. The bank can also demand third party guarantee as to its sole discretion.
  • Margin on the value of the property: In order to cover the risks involved, Bank of India offers Loan Against Property as per its LTV (Loan to Value) ratio. Presently the margin requirements for Bank of India Loan Against Property are:
    • Zero margins on limit given on the basis of Circle Rate/ Registration value of the property (100% loan amount).
    • 60% of market value (40% of loan value)
    • 50% of the distress sale value (50% amount of loan)

Bank offers the amount, which is the lowest of the above-mentioned parameters.

  • Loan amount available: The amount of loan sanctioned by the Bank of India depends on the value of the security, margin requirements, the net take home pay, the repayment capacity of the borrower, and the type of loan applied for.
    • Loans to individuals (salaried/non-salaried)/self-employed professionals: For customers falling under this category, Bank of India offers loans amounting to 48 times of average net take-home salary as per his/her IT return or 4 times of the individual's net annual income including other sources of income.
    • Loan to doctors /joint account with all the holders being doctor: The sanctioned amount of loan will be 4 times of the average net annual income of last 2 to 3 years based on the IT returns of the doctor for the last 2 to 3 financial years.
    • Loans to partnership firms/ companies/proprietorship firms: The amount of loan sanctioned depends upon the nature of the loan that is applied.
    • For reducible overdraft facility: The amount of loan is 4 times the average net annual income of last 2-3 years based on the IT returns of the last 2 to 3 financial years.
    • For non-reducible overdraft facility: The sanctioned amount of loan will be 20% of the total annual turnover based on the audited balance sheet for the last year.
Type of Borrower Demand/Term Loan Overdraft (Reducible) Overdraft (Non-Reducible)

Individual-salaried/self-employed

5 Crores

2 Crores

Not Applicable

Doctor/in case of joint accounts all to be doctors

5 Crores

5 Crores

Not Applicable

Others

5 Crores

5 Crores

5 Crores

Bank of India Loan Against Property - Rate of Interest

The interest rates of the Bank of India Loan Against Property depends on and linked to the 1 year Marginal Cost of Fund Based Lending Rate (MCLR) of the bank.

The current 1-year MCLR is 8.35% w.e.f 10.08.2019.

The applicable rates of interest are as follows:

Type of Loan Applicable Interest Rate

Loan/ Overdraft Reducible (Monthly Reducible Limit)

1 Year MCLR +2% = 10.35%

Overdraft (Non-Reducible)

1 Year MCLR + 2.50% = 10.85%

Types of Loan Against Property Offered by Bank of India

Bank of India generally provides 3 types of Loan Against Property. They are mentioned as below:

  • Loan against residential property
  • Loan against commercial property
  • Loan against industrial property

The amount of loan totally depends upon the value of the property. The loan sanctioned also depends upon the salary or annual income of the applicant. The maximum amount of loan provided on each type of property differs as all of them are not the same. Applicants will be liable to pay EMIs based on the amount of loan sanctioned by the bank to them.

Bank of India Loan Against Property - Eligibility

  • The loan is available to:
    • People who are engaged in trade, commerce, and business
    • Professionals, self-employed, and individuals with high net worth
    • Salaried people
    • Proprietary firms, partnership firms, Pvt. /Public Ltd. Companies, HUFs (not partnership firms where HUF is a partner), Staff members, Societies.
    • NRIs, subject to compliance of RBI?s/Bank?s guidelines
  • The maximum age acceptable to the bank at the end of the repayment tenure is:
    • For salaried individuals who are in permanent service: 60 years
    • For proprietary concerns/self-employed/non-salaried individuals: 70 years

Documents Required for Bank of India Loan Against Property

Bank of India, like every other financial institution, requires certain documents from the applicants along with the application for a Loan Against Property:

  • Completely filled loan application
  • 2 passport-sized photos
  • Proof of identity
  • Proof of residence
  • Salary slips - For salaried applicants
  • Non-salaried borrowers are required to present the proof of business address
  • Statement of bank accounts for the previous 6 months
  • Previous banker's signature document of identification
  • Personal assets and liabilities statements in the Bank's standard format
  • Short write up of securities charged in respect of other loans availed from the bank/other banks/housing and/or auto finance companies/other sources.

Why Apply for Bank of India Loan Against Property on MyMoneyMantra?

You avail multiple benefits when you apply for Bank of India Loan Against Property on MyMoneyMantra, as the entire process is effortless and convenient. Ours is an online platform that specializes in finance and loans. Being in partnership with more than 90 banks and other financial institutions, our experts have the knowledge, experience and expertise to make your journey, right from the application to the disbursal, as easy and hassle-free as possible.

Additionally, for most people, the world of finance seems complicated; hence, having someone knowledgeable by your side to navigate you through this process can make it easier and more convenient. MyMoneyMantra is an online platform where financial specialists assist applicants and help them through the entire process of application, document submission, verification, and disbursement to help customers avail the loan in the most hassle-free and convenient manner possible. Moreover, as all the operations are conducted online, you don't even have to leave the comfort of your home to avail the advantage and convenience offered by our services.

How to Apply for Bank of India Loan Against Property through MyMoneyMantra?

Following are the steps to avail Bank of India Loan Against Property through MyMoneyMantra:

  • Visit MyMoneyMantra
  • Go to Loans section and choose Loan Against Property option
  • Fill in and submit all the required details
  • Enter the OTP in the given space
  • You will soon receive a call from our representative who will guide you further regarding the loan application.

Other Products Offered by Bank of India

The bank also offers the following products:

BOI Star Home Loan

 

BOI Star Smart Home Loan

 

Star Pravasi Home Loan

BOI Star Diamond Home Loan

Pradhan Mantri Awas Yojana

BOI Star Education Loan

BOI Star Vidya Loan

Padho Pardesh

 

BOI Star Top Up Loan

BOI Star Vehicle Loan

BOI Star Personal Loan

BOI Star Mitra Personal Loan

BOI Star Pensioner Loan

Star Holiday Loan

BOI Star Doctor Plus

BOI Star IPO

Pradhan Mantri Kaushal Rin Yojna (Skill Loan)

Earnest Money Deposit (EMD) Scheme

Bullion Banking

Export Finance

Channel Credit

Discount Future Cash Flows

Foreign Currency Swing Limit

ExportersGold Card

Traders

Dual Currency Swing Limit

Bill Finance

Bank Guarantee

Kisan Credit Card Star

BOI Kisan Shatabdi Krishi Vikas Card

Kisan Samadhan Card

Bhumiheen Kisan Card

Housing Loan To NRIs/PIOs

Overdraft Against Securities

Loan Against FCNR (B) Deposits

MSME Finance

Credit Cards

Prepaid Cards

Business Cards

NRI Deposits

Term Deposits

Tax Saving Deposits

Savings Account

Salary Account

Current Account

NRI Accounts

Motor Accident Claims Annuity (Term) Deposit Account (MACAD)

CASA Term Insurance

How to Calculate Bank of India Loan Against Property EMI?

The most convenient method to calculate the EMI for Bank of India Loan Against Property is using MyMoneyMantra's EMI Calculator. Simply visit the MyMoneyMantra and select EMI Calculator mentioned under Financial Tools. Simply enter the required information, and you will be provided with the amount of EMI you are expected to pay for a specific loan amount, interest rate, and loan tenure.

Bank of India Loan Against Property - Processing Fees

Processing fees levied by Bank of India for a Loan Against Property are:

Processing Charges (all charges include GST)

Loan/ Overdraft Reducible (Monthly Reducible Limit)

 

For loan repayable by instalments:

1% of sanctioned loan amount, minimum 5,000 and maximum 50,000.

For mortgage OD (reducible):

  • 0.50% of the sanctioned limit, minimum 5,000 and maximum 30,000 for 1st year at the time of sanction.
  • 0.25% of the reviewed limit, minimum 2,500 and maximum 15,000 for subsequent years.

Overdraft (Non-Reducible)

 

For mortgage OD (non-reducible):

0.50% of the sanctioned/reviewed limit,
minimum 5,000 and
maximum 30,000 on an annual basis.

For rural areas

75% of normal applicable charges in respect to loans availed by borrowers from rural areas from rural branches.

Bank of India Loan Against Property - Customer Care

You can contact Bank of India through:

Toll-free number: 1800-220-229 or 022-4091-9191

Bank of India Corporate Office Address: 

Star House, C - 5, "G" Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Bank of India Official Email ID: 

HeadOffice.CSD@bankofindia.co.in

FAQs

What is the maximum repayment tenure for Bank of India Loan Against Property?

The maximum repayment tenure offered by Bank of India for its Loan Against Property is 12 years or 144 months.

What kind of properties can be mortgaged under Loan Against Property scheme of Bank of India?

Customers can mortgage residential, commercial, or industrial properties for Bank of India Loan Against Property.

How can one calculate the Bank of India Loan Against Property EMI?

One of the most convenient ways to calculate the EMI for Bank of India Loan Against Property is through the EMI Calculator available on MyMoneyMantra website.

How can we apply for Bank of India Loan Against Property?

Anyone who wants to apply for the Bank of India Loan Against Property can do it by three methods:

  • Through Bank of India's website
  • By visiting or calling the nearest branch of Bank of India
  • Through MyMoneyMantra

How much loan amount can I get under Bank of India Loan Against Property?

The maximum amount you can get is 5 Crores.

What is the current 1-year MCLR of the bank?

The current 1-year MCLR is 8.35% w.e.f 10.08.2019.

Latest News Snippets

30 July 2019: Bank of India net jumps off two-fold to 243 Cr. in Q1; net NPAs down at 6%

Bank of India on Tuesday reported more than two-fold jump in its net profit to 242.62 cr. in the first quarter ended on June 30. The bank had posted a net profit of 95.11 crore during the April-June period of the previous fiscal. Total income of the bank rose to 11,526.95 crore during the quarter, as against 10,631.02 crore in the same period preceding fiscal, the bank said in a regulatory filing. The lender witnessed slight improvement in its gross non-performing assets (NPAs) to 16.50% of the gross advances as on June 30, 2019, down from 16.66% by the end of June 2018. 

OTP is sent to your mobile number

Enter OTP

Resend OTP

×

Get Personal Loan up to 40 Lakh Chat
& get instant approval