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%|
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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
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 Score||Salaried||Self Employed|
|725 - 759||7.05%||7.15%|
|675 - 724||7.15%||7.75%|
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
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 Type||Eligible Quantum of Loan|
|Salaried||72 times gross monthly salary OR 6 times gross annual income based on ITRs|
|Self Employed||6 times gross annual income based on ITRs|
|HUF / Proprietorship / Partnership Firm / Company||6 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 that our financial analysts reviewed. 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
|Pre-payment charge for floating rate loans||None.|
|Pre-payment charge for fixed rate loans||Between 0.65% and 2.25% of outstanding principal amount.|
|Fixed to floating rate conversion charge||Between 0.25% and 2.10% of outstanding balance.|
|Floating to fixed rate conversation charge||Between 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.
- Toll-free number: 1800 103 1906
- Toll-free number (Covid-19 Support): 1800 220 229
- Chargeable Number: (022)-40919191
- Click here to find an ATM or a BOI branch near you.