Bank of India Home Loan Interest Rates
Home Loan Bank Information
Introduction
Bank of India is India’s leading Public Sector Bank with over a hundred years of unenviable legacy. The bank offers several home loan products for every category of the society laced with redeeming features, and most importantly, competitive and affordable interest rates. Presently the Bank of India offers only the floating interest rate in home loans benchmarked to the external RBI Repo Rate in juxtaposition with the earlier MCLR.
The Floating Bank of India Bank Home Loan Interest Rate is applied on a daily balance at monthly rest. It is revised up or down based on the RBI declared Repo Rate. Compared to the fixed interest rate, which remains constant throughout the loan tenure, the floating Interest rate fluctuates depending on the benchmarking movement.
The current Bank of India home loan interest rates are:
-
- 6.85% per annum RBLR floating rate effective from 1 June 2021.
- 7.35% per annum MCLR rate effective from 1 October 2020.
Bank of India Bank Home Loan Interest Rate Table:
The grid represents the applicable Bank of India Bank Home Loan Interest Rate based on RBI Repo Rate’s external benchmark, effective from 1 June 2021. It is under the floating category applied to home loan tenures up to 30 years.
| RBLR Based Bank of India Bank Home Loan Interest Rate | ||
|---|---|---|
| CIBIL Credit Score | Salaried | Non-Salaried |
| 760 and above | RBLR + 0.00% = 6.85% | |
| Between 725 and 759 | RBLR + 0.20% = 7.05% | RBLR + 0.30% = 7.15% |
| Between 675 and 724 | RBLR + 0.40% = 7.25% | RBLR + 1.00% = 7.85% |
| Below 675 | RBLR + 1.35% = 8.20% | RBLR + 1.50% = 8.35% |
| Score -1 and 0 | RBLR + 0.30% = 7.15% | RBLR + 0.40% = 7.25% |
| For Women borrowers only | ||
| 760 and above | RBLR + 0.00% = 6.85% (no concession) | |
| Between 725 and 759 | RBLR + 0.15% = 7.00% | RBLR + 0.25% = 7.10% |
| Between 675 and 724 | RBLR + 0.35% = 7.20% | RBLR + 0.95% = 7.80% |
| Below 675 | RBLR + 1.30% = 8.15% | RBLR + 1.45% = 8.30% |
| Score -1 and 0 | RBLR + 0.25% = 7.10% | RBLR + 0.35% = 7.20% |
Bank of India Bank Home Loan Interest Rate Features:
The Bank of India Bank Home Loan Interest Rate is based on the RBI Repo Rate, which has remained unchanged at 4%. Accordingly, the RBLR rate derived is 6.85% per annum after the mark-up premium of 2.85% has been applied. The critical features of the rate are:
-
- The RBLR rate applies to home loans for a tenure extending up to 30 years.
- The effective date for the current Bank of India bank Home Loan Interest Rate is 1 June 2021.
- Presently Bank of India offers only floating interest rate in their home loan products.
- The Bank of India Bank Home Loan Interest Rate is applied daily on reducing balance at monthly rest.
- A 0.10% CRP (Credit Risk Premium) is applied to the home loan interest rate for the customers applying to switch from the Base Rate/MCLR interest rate regime for an effective applicable rate of 6.95% per annum in the RBLR regime.
- The applicable interest rate is linked to the borrower’s credit history revealed by the CIBIL Score.
- Women borrowers are rewarded with a 0.05% lower interest rate than others for CIBIL score up to 759.
- Considering all these factors, the prevailing Interest Rate is 6.85% per annum to 8.35% per annum.
- The applicable interest rate is revised depending on the Repo Rate movement, either upward or downwards as the case may be.
- Accordingly, the applicable interest rate change impacts the EMI components for suitably adjusted loan tenure.
Bank of India Bank Home Loan Interest Rate for Varying Amounts:
The applicable Bank of India Home Loan Interest Rate is based on either the CIBIL score or others without it. Various applicable interest rates are represented in the following grids.
| Bank of India Bank Home Loan Interest Rate for Men – 30 years Tenure | ||
|---|---|---|
| Loan Amount | Salaried | Non-Salaried |
| Up to Rs.50 Lac | 6.95% to 8.30% | 6.95% to 8.45% |
| Rs. 50 Lac to Rs.1Cr | 6.95% to 8.30% | 6.95% to 8.45% |
| Rs.1Cr to Rs.3 Cr | 6.95% to 8.30% | 6.95% to 8.45% |
| Rs.3 Cr and above | 6.95% to 8.30% | 6.95% to 8.45% |
The rates are uniform across all loan amounts as the CIBIL score is accommodated.
| Bank of India Bank Home Loan Interest Rate for Women – 30 years Tenure | ||
|---|---|---|
| Loan Amount | Salaried | Non-Salaried |
| Up to Rs.50 Lac | 6.95% to 8.25% | 6.95% to 8.40% |
| Rs. 50 Lac to Rs.1Cr | 6.95% to 8.25% | 6.95% to 8.40% |
| Rs.1Cr to Rs.3 Cr | 6.95% to 8.25% | 6.95% to 8.40% |
| Rs.3 Cr and above | 6.95% to 8.25% | 6.95% to 8.40% |
The rates are uniform across all loan amounts as the CIBIL score is accommodated
Non-CIBIL Bank of India Bank Home Loan Interest Rates
Among the many home loan products in the Bank of India’s Retail Portfolio, not all scheme interest rates are based on the borrower’s CIBIL score. The applicable interest rates are determined by the credit rating accorded by CIBIL, varying inversely with the score – higher interest rate for lower CIBIL rating. However, in the home loan schemes where the credit rating has no bearing, the interest rates are fixed independently. The grid described below represents the interest rates in specific products regardless of the borrower’s CIBIL score. The rates are, nevertheless, linked to Repo Rate and defined according to the bank’s RBLR.
| Non-CIBIL Bank of India Bank Home Loan Interest Rate – 30 years Tenure | ||
|---|---|---|
| Home Loan Scheme | Women Borrowers | Other Borrowers |
| Star Pravasi | RBLR + 0.05% = 6.90% | RBLR + 0.10% = 6.95% |
| PMAY (New Loans) | RBLR + 0.10% = 6.95% | |
| Top-Up Loan (subject to minimum RBLR) | ||
| Star Pravasi | RBLR + 0.05% + 0.10% CRP = 7.40% | RBLR + 0.10% + 0.10% CRP = 7.45% |
The rates are uniform across all loan amounts as the CIBIL score is ignored.
CIBIL Based Bank of India Bank Home Loan Interest Rate for Multiple Schemes
The Bank of India offers multiple housing loan schemes catering to a diverse clientele. Presently the bank offered only Floating Bank of India Home Loan Interest Rates and benchmarked to the RBI Repo Rate. However, the interest rates in some housing loan schemes are factored with the applicant’s credit rating from reliable bureaus. Bank of India uses the CIBIL score for this purpose. Accordingly, the following table describes the interest rates in individual schemes.
- Star Home Loan: The bank’s flagship home loan scheme is designed for a vast cross-section of society covering diverse purposes. The loan is available for:
-
- Purchase or construct a flat/house.
- Repair, extend, renovate existing house / flat.
- Purchase plot for contrition of house.
- Take over a home loan from others.
- Star Smart Home Loan: The loan is targeted at existing customers holding Savings or Current accounts, maintaining an average balance of Rs.5000 over the past year. It is an overdraft facility to lower the interest burden by sweeping out to the loan account over a threshold limit.
- Star Diamond Home Loan: As the name suggests, the loan caters to high net-worth individuals and Corporate, aiming to acquire premium residential accommodation. The eligibility norm is a minimum income of Rs.1 Cr, and the property must be located either in a metropolitan or a major “A” class city.
| CIBIL Based Bank of India Bank Home Loan Interest Rate | ||
|---|---|---|
| CIBIL Credit Score | Salaried | Non-Salaried |
| 760 and above | 6.85% | |
| Between 725 and 759 | 7.05% | 7.15% |
| Between 675 and 724 | 7.25% | 7.85% |
| Below 675 | 8.20% | 1.50% = 8.35% |
| Score -1 and 0 | 7.15% | 7.25% |
| For Women borrowers only | ||
| 760 and above | 6.85% (no concession) | |
| Between 725 and 759 | 7.00% | 7.10% |
| Between 675 and 724 | 7.20% | 7.80% |
| Below 675 | 8.15% | 8.30% |
| Score -1 and 0 | 7.10% | 7.20% |
-
- The loan tenure is assumed as 30 years
- All the rates are applicable per annum
- The offered interest rates are RBLR based
Home Loan borrowers under MCLR interest rate must pay an additional 0.10% CRP for switching to RBLR interest rate.
Non-CIBIL Based Bank of India Bank Home Loan Interest Rate for Multiple Schemes
-
- Star Pravasi Home Loan: The housing loan scheme is designed for NRI and PIO. The interest rate is Repo Rate linked independently of the CIBIL score.
- Pradhan Mantri Awas Yojana: It is a Credit Linked Subsidy Scheme (CLSS) with the primary aim of fulfilling the government’s “Housing for All” mission.
| Non-CIBIL Bank of India Bank Home Loan Interest Rate | ||
|---|---|---|
| Home Loan Scheme | Women Borrowers | Other Borrowers |
| Star Pravasi | 6.90% | 6.95% |
| PMAY (New Loans) | 6.95% | |
| Top-Up loan (subject to minimum RBLR) | ||
| Star Pravasi | 7.40% | 7.45% |
-
- The loan tenure is assumed as 30 years
- All the rates are applicable per annum
- The offered interest rates are RBLR based
- Home Loan borrowers under MCLR interest rate must pay an additional 0.10% CRP for switching to RBLR interest rate.
- The rates are uniform across all loan amounts as the CIBIL score is ignored.
Factors affecting Bank of India Bank Home Loan Interest Rate:
Several critical factors impact the applicable Bank of India Bank Home Loan Interest Rate. Some worth noting are:
-
- Interest Type: Bank of India applies only floating interest rate benchmarked to the Repo Rate across all home loan schemes. Borrowers under the MCLR interest rate are free to switch to the RBLR interest rate but with an additional 0.10% CRP. The interest rate varies according to the Repo Rate movement.
- Applicant Category: The interest rate changes with the applicant category. Thus the interest rate for the salaried is independent of the self-employed. Women borrowers for the salaried and the self-employed benefit by a 0.05% lower interest rate.
- Credit History: The three products which employ the CIBIL score for fixing the applicable interest rate are the Star Home Loan, Star Smart Home Loan, and Star Diamond Home Loan. The higher the score, the lower the interest rate, regardless of the borrower’s gender.
Bank of India Bank Home Loan Interest Rate Points to Note:
-
- Only floating interest rate is applied to Bank of India Home Loan.
- The interest rate is benchmarked to the external Repo Rate.
- The upward or downward Repo Rate revision is reflected in the interest rate effective from the first of the following month.
- The interest rate for Commercial Real Estate (CRE) is higher by 0.50% over the usual Bank of India Bank Home Loan Interest Rate.
FAQs:
How is the Bank of India Bank home loan impacted by adding a co-applicant?
The co-applicant who is also the acquired property’s co-owner with an independent income source adds to loan amount eligibility by clubbing with the primary applicant’s income.
Is the Bank of India Bank Home Loan Interest Rate linked to the loan amount?
The Bank of India Home Loan Interest Rate is applied uniformly across all loan amounts provided the credit score and repayment history match. However, they may vary according to the borrower’s category.
How is the lower Bank of India Home Loan Interest Rate due to the reduced Repo Rate beneficial to the borrower?
When the Repo Rate is lowered, the Bank of India Home Loan Interest Rate also lowers with identical basis points. The lower interest translates into a lower interest burden. The EMI is remaining unchanged, the loan is repaid ahead of the loan tenure.
Does the borrower repay the interest against a Bank of India home loan eligible for tax deduction?
The total home loan interest paid in a year is eligible for tax deduction up to Rs.2 Lac under Section 24 of the Income Tax Act, 1961.
How is the principal repaid treated under the extant income tax laws?
The principal amount repaid in a financial year is eligible for tax exemption up to Rs. 1.5 Lac under Section C of the Income Tax Act, 1961.
How can the applicant reduce the applicable Bank of India Bank Home Loan Interest Rate?
The primary way to reduce the applicable Bank of India Home Loan Interest Rate is by improving the CIBIL score. The applicant can negotiate a better deal.
Is the top-up loan available to the borrower in the Bank of India home loan scheme?
All existing Bank of India home loan borrowers are eligible for the top-up loan provided they have a satisfactory repayment history of a minimum of two years.
What is the eligible quantum of a Top-up loan for the existing Bank of India home loan?
The eligible loan quantum is 75% of the home loan acquired property’s distress sale price and a minimum of Rs.2 Lac.
What is the applicable Bank of India Home Loan Interest Rate in the Top-up loan?
The applicable interest rate is 0.50% higher than the rate applied to the parent home loan.
How much is the Bank of India EMI for home loan per Lac Rs. at the lowest interest rate and loan tenure of 30 years?
The home loan EMI is Rs.6662 per Rs. 1 Lac at the lowest interest rate at 6.95% per annum for 30 years tenure.