Bank of India Home Loan Review: BOI Interest Rate, Documents

Bank of India Home Loan Review: BOI Interest Rate, Documents

Bank of India offers a range of home loans with especially low interest rates and processing fees.

Good for

  • Borrowers seeking the lowest interest rates
  • Women who can avail a 0.05% interest rate concession

Bad for

  • Borrowers seeking 90% funding of property value
  • Borrowers who want an easy online application process

Editor's Rating

4.0/5.0

With low interest rates starting at 6.85% and a small 0.25% processing fee, Bank of India (BOI) is one of the cheapest home loans in India. However, Bank of India's limitation is its low margin, which goes up to only 85% of your property value. If you are seeking maximum funding, BOI is not the best home loan option for you, but if you want to minimise your total cost of borrowing, consider Bank of India as your home loan lender.

Summary of BOI Home Loans
Lowest interest rates starting at 6.85%
Lowest processing fees at 0.25%
Free personal accident insurance coverage
Home loan benefits for women
Multiple EMI Repayment Methods
Margin maximum at 85%

Table of Contents

What Makes Bank of India Home Loans Stand Out to Borrowers

With rates starting at 6.85% and a 0.25% processing fee, Bank of India stands out as one of the cheapest home loans on the market. BOI also provides free personal accident insurance coverage to its home loan borrowers, which very few banks advertise in a home loan package.

Bank of India also offers multiple EMI repayment methods, an advantage which is not advertised or offered by many home lenders in India. This is a great feature for potential borrowers who prefer a different structure than the standard 12 EMI payments per year.

Bank of India Home Loan Interest Rates

Bank of India has the 2nd lowest interest rates amongst the banks we analysed, starting at 6.85%.
Bank of India has the 2nd lowest interest rates amongst the banks we analysed, starting at 6.85%.

BOI home loan interest rates start as 6.85% and can go up to 7.75% under the most basic conditions. However, your final BOI interest rate will be determined by your gender, job position and CIBIL score. Below, you will find a table of Bank of India interest rates based on CIBIL score and status as a salaried or self-employed person.

BOI Home Loan Interest Rates by CIBIL Score

CIBIL ScoreSalariedSelf Employed
760+6.85%6.85%
725 - 7597.05%7.15%
675 - 7247.15%7.75%
Women receive a 0.05% concession from CIBIL groups below 760. BOI Top Up Loans will have a premium of 0.50% added to the applicable home loan interest rate.

To avail the lowest interest rate, borrowers should be salaried and have a CIBIL score above 760. Further, women are eligible for concessional interest rates, starting from 6.85%. In addition, self employed borrowers and those with low CIBIL scores can still avail low interest rates between 7.00% and 7.75%, which is relatively less than the market average of 7.60% to 8.53%.

Bank of India Home Loan Eligibility Criteria

Consider this if you seek the lowest home loan interest rates

Maximum Loan Tenure 30 years
Processing Fee 0.25% of Loan amount (min Rs. 1,000, max Rs. 20,000)

While interest rates and general eligibility criteria vary depending on your qualifications, Bank of India is rather inclusive compared to other major banks. BOI home loans are open to a variety of borrowers including self employed persons, NRIs, and farmers.

Additionally, the BOI age requirement maximum of 70 is at least five years higher than other major lenders like HDFC and SBI, who only offer home loans to borrowers up the age of 60 and 65, respectively.

Further, Bank of India has a standard loan tenure, allowing borrowers to pay off their home loan over a 30 year loan term. Unique to BOI, this loan tenure maximum applies to both construction and purchase loans, as well as repair and renovation loans.

A potential drawback to the Bank of India home loan is the low margin of funding offered by the lender. While most banks are willing to fund up to 90% of your property value, BOI will only cover a maximum of 85%. Nonetheless, the maximum amount of funding you can avail is Rs. 300 lakhs for the purchase or construction of a home, or Rs. 50 lakhs for repairs and renovation.

Ultimately, your final home loan amount will be determined by your job position and income. Below, you can find a table detailing BOI home loan eligibility per job position type.

Quantum of Home Loan for Salaried and Self-Employed Borrowers

Applicant TypeEligible Quantum of Loan
Salaried72 times gross monthly salary OR 6 times gross annual income based on ITRs
Self Employed6 times gross annual income based on ITRs
HUF / Proprietorship / Partnership Firm / Company6 times cash accruals as per Balance Sheet and P&L Account Statements

BOI Processing Fees and Other Charges

The Bank of India processing fee — 0.25% of the total home loan amount — is one of the lowest amongst the banks we analysed. Borrowers may pay a minimum of Rs. 1,500 and maximum of Rs. 2,00,00 in processing charges, which is much less than what you would pay at SBI, for instance.

Read More: SBI Home Loan Review

That being said, there are other BOI home loan schemes that charge higher fees. If you are applying for a home loan in a rural area, your processing fee will be 0.75% of the total loan amount. The same minimum and maximum of Rs. 1,500 and Rs. 2,00,00 still applies, though, so this should not significantly affect your decision making. Moreover, if you are a high income earner seeking to avail the Star Diamond Home Loan, you will be charged a one time processing fee of Rs. 5,00,00.

Below, you can find a list of other BOI fees and charges that you may come across during your home loan application.

Bank of India Fees and Charges

FeeAmount
Pre-payment charge for floating rate loansNone.
Pre-payment charge for fixed rate loansBetween 0.65% and 2.25% of outstanding principal amount.
Fixed to floating rate conversion chargeBetween 0.25% and 2.10% of outstanding balance.
Floating to fixed rate conversation chargeBetween 0.40% and 2.10% of outstanding balance.

Bank of India Home Loan Application Process: How to Apply

To apply for a Bank of India home loan, you have the option of an online application or in person application process. Since the bank's website is not very easy to navigate, you should contact BOI customer service with any queries.

BOI Customer Care

Unfortunately, there is no Bank of India home loan documents list provided on their website. However, BOI claims that their application process is simplified for the convenience of customers.

For more information on the BOI home loan process, you can contact them through any of the methods listed below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.