Bank Of India Home Loan Interest Rate

Bank of India Home Loan Interest Rate

Bank of India home loan interest rates depend on factors such as age of the applicant, source of income, repayment capacity and credit history. The bank offers interest rate on the basis of MCLR. An overview of the MCLR is as follows:

Factors That Affect Interest Rate on Your Home Loans

Banks do not offer the same rate of interest to all applicants. They assess the applications on the basis of some factors and the main ones are:

Credit Score :

One of the most important factors is the applicant’s credit score. Banks insist on having the credit score of the applicant to understand their credit worthiness. This helps in assessing the risk factor in offering the loan to a particular individual. If the credit score is on the higher side, there would not be an issue in getting a home loan at a competitive interest rate. Even a one per cent difference in the interest rate makes a huge difference as it results in few lakhs being saved. If the credit score is low, it is advised that the applicant settle all existing debts and re-assess the credit score to improve it.

Loan Amount :

The home loan interest rate is dependent on the amount of loan taken. If the loan amount is on the higher side, the rate of interest will also be higher. The bank takes a huge risk with huge amount of loans. Hence, a higher rate of interest is charged. All leading banks offer women applicants home loans at concessional rate of interest.

Down Payment :

When an individual books a house or an apartment, a down payment needs to be made. If the down payment is high, the loan amount become less. This in turn reduces the rate of interest and makes it cheaper to borrow just some amount. Additional down payment helps in managing the repayment of loan in a better way.

Type of Interest :

There are two types of interest rates available on home loans – fixed rate and floating rate. In the fixed rate scheme, the rate of interest remains the same throughout the tenure of the loan. In the floating type of interest rate, it varies depending on the market conditions. Prepayment of loan does not attract additional charges in the floating rate of interest scheme.

Bank of India Home Loan Overview

Bank of India home loan is one of the most competitive ones in the market. Some of the features are:

• Competitive rate of interest
• Prepayment of loan can be done without any charges under the floating rate scheme.
• The home loan from Bank of India can be taken to purchase a plot for constructing a house, construct a house, flat or renovation
• Flexible tenure up to 30 years
• Maximum loan amount offered is Rs. 500 lacs
• One can customize the EMIs for different periods for better repayment of the loan
• Interest is calculated on daily balance basis thus, helping the borrower with lower interest rate
• Loans are made available to both NRIs and persons of Indian origin.
• Simple and easy documentation
• Free Personal Accident Insurance Cover
• Life Insurance cover is available for applicants
• Bank of India offers facility for step up/step down of EMIs
• There are no pre-payment charges for floating rate loans
• One can take tax benefit on interest and instalments paid on home loans

Bank of India Home Loan Eligibility

Banks normally lay out some norms regarding the eligibility of an applicant for a home loan. It is based on the age, income source and repayment capacity. Some of the category of people who are eligible for home loan are salaried employees, professionals, self-employed, NRIs, PIOs, HUF and corporates.

How to calculate Interest/EMI on Bank of India Home Loan

Bank of India provides an online tool on their website to calculate the EMI on your home loan. The EMI calculator is very handy and easy to use. It helps in understanding the monthly outflow from your finance budget towards loan repayment. The EMI calculator needs the loan amount, tenure of the loan and the applicable interest rate to calculate the monthly instalment. It helps in avoiding any human error that can occur in manual calculations. The EMI calculator can be used many times over with different permutations and combinations.

CreditMantri provides a Home Loan EMI calculator to help in determining the monthly payments. It also shows the break-up of the loan amount, interest to be paid and applicable charges. An EMI calculator shows the correct calculations on the home loan payments.

Bank of India Home Loan Status

After an applicant submits his interest to take a home loan with Bank of India, a bank representative will get in touch to complete the remaining documentation. The bank verifies the documents and checks the eligibility of the applicant for a home loan. If the eligibility criteria are met, the loan approval is communicated with the applicant. Thereafter, the loan is disbursed.

The status of the loan application can be done with any of the Bank of India branches. One can also contact their 24x7 customer care service to get the loan status. The application reference number will need to be kept handy.

How to Apply for Bank of India Home Loan

Bank of India has good network throughout the country. You can walk into any of the bank branches and get updated information on the home loan. After consultation with the bank representative, one can apply for the home loan at the bank branch by submitting the application form. Thereafter, the required documents will need to be submitted for further processing.

It is possible to apply for a home loan through CreditMantri website. The eligibility criteria and other requirements are clearly mentioned for convenience. Also, your credit score can be checked and next steps can be referred from the same website.

Bank of India Home Loan Interest Rate: FAQs

1. What purposes does the home loan from Bank of India cover?

Bank of India allows the following to be covered within its home loan:

• Buy or construct a house or flat
• Renovate or expand existing house or flat
• Purchase land for construction of house
• Transfer home loan from other banks/lenders (subject to certain conditions)

2. What is the maximum amount of home loan that can be taken with Bank of India?

The bank offers Rs. 300 lacs for constructing or purchasing a house/flat. This amount goes upto Rs. 500 lacs in major metros like Mumbai, Delhi, Kolkata and Chennai. For repairs and renovation, a maximum of Rs. 50 lacs are available. The bank offers Rs. 300 lacs for the purchase of a plot of land.

3. What is the maximum tenure of a home loan with Bank of India?

The home loan tenure is highly flexible with the bank and can go up to 30 years including moratorium period of 36 months in monthly instalments. The loan needs to be repaid before retirement in case of salaried employees and before 70 years of age for others.

4. Can I get tax benefit on the home loan?

Yes, one can avail tax benefit on the home loan taken from the bank.

5. How is interest calculated on Bank of India home loan?

The interest on the home loan is calculated on a daily reducing balance basis. This is beneficial to the borrower as the interest amount reduces on a daily basis.