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Bank of India Star Diamond Home Loan
Everyone dreams of a home which they can call their own and one that will be a peaceful abode towards retirement. With the advent of home loans, many individuals are able to realize their dreams a lot earlier. Buying a home involves a huge fund outlay, Banks / NBFCs and other unorganized financial institutions provide financial assistance to ensure that the individual is able to have a hassle-free transaction.
Bank of India was established in 1906, and it became a nationalized bank in 1969. It is considered one among the top 5 nationalized banks. They operate in India with over 5000 branches across the country. They serve every strata of the society – rural / semi-urban / urban community in equal measure. They offer a host of customized services. They have been in the home loan lending business long enough to understand the woes of various types of applicants and design / plan financial products which are designed to cater to their needs and requirements.
The real estate prices are sky-rocketing and it is not surprising that the prices in semi-urban and urban realty projects are running high. Buying a reasonably spacious residence in an apartment complex or township has become an expensive affair. Bank of India offer customized home loan to individuals based on their requirement and credit eligibility.
About Bank of India Star Diamond Home Loan
The Bank of India Star Diamond Home Loan is specifically designed for higher quantum of loan. The cost of buying property with posh residential apartments / townships in prime locations has become expensive and would require high loan values. The Bank of India Star Diamond Home Loan is customized to cater to this segment of individuals who need to avail high value loans. They are however, required to establish their income which should be above Rs. 1 crore in the past 3 years.
There are many specific features of Bank of India Star Diamond Home Loan which include high quantum of loan, easy repayments, flexi-payment option, low interest rates, longer tenure for home loan.
Features and benefits of Bank of India Star Diamond Home Loan
The Bank of India Star Diamond Home Loan has unique features which specifically caters to the segment which intends to buy high rise residential property in prime locations. The key features with respect to this home loan are mentioned below –
High quantum of loan – The loan value can be as high as Rs. 5 crore, provided the applicant is able to establish his ability to repay the loan effectively over the tenure. The key validations in this respect include existing assets / liabilities, continuous source of income, stability of income and quantum of income.
Geographic location of residential property – This loan is specifically extended to residential complexes / townships which are built in metro and cosmopolitan cities.
Interest rates applicable for Bank of India Star Diamond Home Loan
Bank of India Star Diamond Home Loan provides competitive interest rates. One of the key reasons why BOI is able to extend home loans at competitive rates is because, they have huge volume of business given their long standing in the Indian market. They have built a reputation for being competitive, ethical and transparent in their operations.
The Bank of India Star Diamond Home Loan is extended on a floating rate basis and the interest rate is charged at 0.25% above the base rate of 10.2%.
The interest rate on new loans extended is based on Marginal cost of funds-based lending rate from April 1, 2016. The MCLR for 1 year has been 9.4% per annum. Based on this base rate, a business strategy spread of 0.3% along with 0.25% spread is applied. The interest rate applied on Bank of India Star Diamond Home Loan is 9.95%.
Who can apply for loan from Bank of India Star Diamond Home Loan?
The below applicants can avail loan from Bank of India Star Diamond Home Loan –
- High net worth individuals (HNIs)
- Corporations or firms who wish to take the loan in order to purchase residential accommodation for their directors or partners.
Individuals having an average gross income of Rs 1 crore or above, as per their audited balance sheet or IT returns, for the past 3 years
Margin and take-home pay
The loan margin is set at 25% on pure value of property – only the construction cost of the property is considered. The other costs such as stamp duty, registration charges, taxes etc., are not included while calculating the margin on the home loan provided.
The DSCR (Debt service coverage ratio) / take home pay is set at 25% of gross income for a salaried individual applying for Bank of India Star Diamond Home Loan. For corporates / businesses, the DSCR is applicable at 1.5x. Debt service coverage ratio refers to the extent to which one can service loans / debt / borrowings based on the income earned by the applicant.
Documentation for availing loan from Bank of India Star Diamond Home Loan
Most of the banks have a standard set of documents to be submitted for availing home loan. This is quite an important process in the home loan application and disbursement. The home loan documentation process will essentially establish the authenticity of the person applying for the loan, establishment of income stability and due diligence of the property that the investor wishes to buy. The list of documents required include –
| Identity proof |
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|---|---|
| Address proof |
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| Age proof |
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| Income proof | For salaried individuals –
For self-employed / professionals –
For businesses /companies –
|
| Other documents / declarations | Bank Account Statement/Pass Book for last 6 months. Specimen signature authentication from banker of the applicant (in this case will be BOI itself – since opening an account becomes mandatory) Liabilities statement and Personal Assets. |
In some cases, there may be a requirement for guarantor, in such cases, the same set of documents as mentioned above will be collected from the guarantor as well.
In addition to the above documents, the property documents should be submitted to the bank for facilitation of due diligence of property. The list of property documents below is not exhaustive, but give a gist of standard documents collected in this regard.
- Sale deed / Sale agreement as applicable
- Possession certificate, Building / Land tax receipts
- Allotment letter provided by builder / society / Government body
- Receipts of advance payments to property
- Non-encumbrance certificate for past 12 / 30 years
- Approved building plan
- NoC (no objection certificate) from builder / Housing society
- Cost estimation plan
- Lawyer report for clearance of property
- Valuation report by property valuator
Most of the residential apartments / townships have tie-ups with banks / NBFCs where the property documents will already be cross-checked. Hence, this saves the time taken to conduct due diligence for each application. It is most convenient for borrowers to approach a pre-approved project for home loans.
How to calculate EMI for Bank of India Star Diamond Home Loan?
Calculation of EMI can help you understand the amount to be set aside for the home loan on a monthly basis. This may not be accurate; however, it will provide an assessment of the strain on monthly budget. Most of the banks / NBFCs will have an EMI calculator where the basic personal information is captured. The loan value, credit score and tenure have to be entered along with income details. This will give the EMI to be paid by the individual on a monthly basis.
Fees and charges applicable on Bank of India Star Diamond Home Loan
Apart from the interest charged on the home loan, the borrower should also pay the processing fee of Rs. 50,000 or maximum as per Bank of India Star Diamond Home Loan scheme. The higher of the two is applicable except out of pocket expenses.
There are other standard charges applicable on the home loan.
Bank of India Star Diamond Home Loan FAQs
1. Who can apply for Bank of India Star Diamond Home Loan?
These are the applicants who are eligible to apply for loan with Bank of India Star Diamond Home Loan -
- High net worth individuals (HNIs)
- Corporations or firms who wish to take the loan in order to purchase residential accommodation for their directors or partners.
- Individuals having an average gross income of Rs. 1 crore or above, as per their audited balance sheet or IT returns, for the past 3 years
2. Which geographic locations projects are considered for Bank of India Star Diamond Home Loan?
The loan can be availed in metro cities such as Mumbai, New Delhi, NCR, Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad and Pune.