Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other banks. The bank offers home loan known as 'Star home loan' for both, Indians and NRIs. The home loan is available for Indians and NRIs. Interest is calculated on daily balance basis. The bank offers fixed as well as floating interest rates. One can exercise the option of balance transfer.

STAR HOME LOANS

1. Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well as for renovation/ repair/alteration/addition to house/flat, furnishing of house.
2. Maximum loan amount is Rs.300 lacs and repayment ranges upto 20 years, with reasonable margin and nominal processing charges. No commitment /administrative charges.
3. The loan is available at very competitive rates of interest, currently available in the industry.
4. Option for different EMI amounts for different periods during tenure of loan to suit customers repayment capacity.
5. Prepayment of Loan permitted
6. Interest is calculated on daily balance basis which is of great advantage to customer as it results in lower interest amount.
7. Loan to NRIs as well as Persons of Indian Origin.
8. Simplified application form/procedures for convenience of customers, and speedy approvals.
9. Free Personal Accident Insurance cover
10. Life Insurance Cover to borrowers for Loan Protection(optional)

Purpose :

• To purchase/construct house/flat
• To renovate/extend/repair existing house/flat.
• To purchase a plot of land for construction of house.
• To acquire household articles along with the house/flat-for furnishing the house/flat.

Eligibility

Salaried employees, Professionals like Doctors, Lawyers, Engineers, Chartered Accountants, Self-employed persons. Requests are also considered in special cases from Group of individuals, NRIs, PIOs, HUF, Prop. Firm, Partnership firms and corporate.

Quantum of Loan

• For construction/purchase of a house/flat-Rs.300 lacs
• Repairs/renovation/extension/addition to house/flat - Rs.20 lacs
• Purchase of a plot - Rs.30 lacs
• Purchase/acquire household articles for furnishing the house/flat - Rs.1.00 lac. (15% of Home Loan amount)
• Minimum size of Housing Loan:-
• At Metro and Urban Centres :-Rs. One Lakh
• At Rural and Semi Urban Centres :-No minimum size of loan.

Processing charges

• For loans upto Rs.30 lacs One time @ 0.55% of loan amount min. Rs. 3000/- and max. Rs.10000/-
• For Loan over Rs.30 Lacs upto Rs.50 lacs - One time flat Rs.15,000/-
• For Loan over Rs.50 Lacs upto Rs.1.00 crore - One time flat Rs.20,000/-
• Loans over Rs.1.00 crore - One time flat Rs.25,000/-
• Loans over Rs.3.00 crores - One time flat Rs.50,000/-
• For Partnership firms & Corporate Borrowers - Processing charges will be double that of applicable to individuals
• For Rural areas - Processing charges will be 50% that of applicable to individuals in respect of loans availed by borrowers from rural areas from the Rural Branches.

Conversion Charges

Switch over from :

1. Fixed to floating ROI- @0.25% p.a. on o/s balance for the remaining maturity of loan
2. Floating to Fixed ROI - @ 0.40% p.a. on o/s balance for the remaining maturity of loan.
For i & ii above : max. Charge: 2.10% of o/s balance

Charges for deviation from the scheme norms
FFor every item of Deviation from the scheme norms - One time additional processing charges min .Rs.3000/-; max. for set of deviations Rs.10,000/-

Margin

1. For Loan upto Rs.10 Lacs - 15%
2. For Loan over Rs.10 Lacs - 20%

Note : Cost incurred by the proponent in the form of land already purchased/acquired by him/her (from their own sources) can be accepted as part of above said margin at the request of proponent. Liquid securities such as Banks TDR, NSC, KVP etc., can also considered as Margin, ensuring higher quantum of loan.

Repayment (can be customised

Highly flexible - maximum 20 yrs. including moratorium period of 18 months (max.) in monthly installments. Repayment will start on completion of construction/purchase of house/flat or 18 months after first disbursement, whichever is earlier.

Eligible Quantum of Loan/ EMI

Calculation of quantum of loan is related to Income/repayment capacity of proponent/borrower.

1. Salaried Employees : 48 times of gross monthly salary or 4 times of gross annual income based on I-T Returns.
2. Self-employed/ Professionals /Individuals Engaged in Trade /Commerce/Business :4 times of their Gross annual income based on I-T Returns
3. Chartered Accountants : 5 times of Gross annual income based on I-T Returns.
4. Doctors : 6 times of Gross annual Income based on I-T Returns
5. HUF/ Proprietorship/ Partnership Firm/ Company : 4 times of cash accruals (PAT+Depreciation) as per their Balance Sheet/P&L Account

Fees/ Charges :

No administrative fees
No commitment charge

Prepayment Charges :

1. No charges, if pre-payment is made from own sources of the borrower
2. 0.65% p.a. on the outstanding loan amount for remaining maturity of the loan, subject to max.2.25% of outstanding loan amount in case of take over by other bank/FI.
   Other Charges : Legal Expenses/Valuation Charges/Stamp Paper
   Charges At actual –Loan Agreement copy charge : as applicable

Disbursement in advance : Request for 100% disbursement before completion of house/flat can be permitted subject to availability of additional security of 125% of the unsecured portion of loan amount to be disbursed.