Jul 11

Bank of India Mortgage Loan

Team Antworks

Founded in 1906, the Bank of India (BOI) currently has around 4963 branches, 54 zonal offices, 5 subsidiaries across the country and one overseas joint venture. The Bank of India aims to provide proactive, state-of-art and innovative banking solutions to customers. BOI offers a wide range of products and services catered to various sectors from corporate and SME to rural and retail among others. Bank of India offers loans against property (Mortgage Loan) as well.

Purpose of Bank of India Mortgage Loan/Loan against Property

The loan against property can be taken for the following reasons

Commercial activities
Expenses related to education of any family member
Repairs or renovation of commercial or residential properties
Construction of flat or buying a plot for commercial activity
Payment of current loans

Bank of India (BOI) Mortgage Loan

The eligibility criteria and other conditions related to loans against property offered by Bank of India are listed in the table below:

Eligible borrowers Ineligible borrowers	High-net worth individuals Professionals Self-employed Salaried employees Firms (proprietary and partnership) Public and private LTD companies HUFs NRIs (subject to conditions) NBFCs Trusts Partnership firms with HUF as a partner
Types of loans/advances	Term Loan Demand Overdraft
Age	Maximum: 60 years (permanent service) 70 years (proprietary firms, non-salaried and self- employed persons)
Security	Property must be in applicant or his or her spouse/relative’s name. In case of firms, property should be in the name of proprietor/partners/director Any property which is owned by HUF or Society should not be pledged for loan by Karta/office-bearers BOI does not accept agricultural land as security
Quantum of loan/advance Salaried and self-employed/professionals Doctors Partnership/proprietorship firm or company	4 times of annual net income (IT returns of last 2-3 years) or 48 times of take home salary 4 times of annual net income (average) based on the income tax returns of last 2 to 3 years Overdraft (reducible): 4 times of annual net income (average) of last couple of years Overdraft (reducible):20% of turnover on the basis of balance sheet (last 2 to 3 years) which is duly audited
Repayment – Loans Overdraft (non-reducible) Overdraft (reducible)	Maximum: 12 years (EMIs) Interest charged on a monthly basis Maximum: 12 years
Margin	Nil (limit based on registration value) 50% of distress sale value 60% of market value

Mortgage Loan Interest Rates charged by Bank of India

The following table shows the interest rates charged by Bank of India for loans against property

Base rate	9.7% (from October 2015b onwards)
Type of facility	Floating interest rate is linked to BOI base rate
Overdraft (reducible)	Base rate+1.5%= 11.45%
Overdraft (non-reducible)	Base rate+2%= 11.95%

Charges related to BOI Mortgage Loans

Various charges related to loans against property offered by BOI are listed in the table below

Equitable mortgage fee	Rs.5,000 (up to Rs.10 lakh) Rs.10,000 (up to Rs.1 crore) Rs.20,000 (up to 5 crore)
Processing charges	1% of amount sanctioned (loan) 0.50% of (sanctioned) limit (non-reducible overdraft) 0.50% of limit for 1st year plus service tax and 0.25% of the limit (reviewed) afterwards