Bank of India Loan Against Property

Bank of India is a public sector bank with its headquarters situated in Mumbai. Bank of India comes under the list of top 5 banks in the country. Establishes in 1906, it was nationalized by the Government of India in the year of 1969 and presently has 5100+ branches across urban, semi-urban, and rural centers. Ranked among the top banks in India, Bank of India provides its customers with attractive rates of interest on loan against property and excellent customer services. The Loan Against Property provided by the Bank of India follows an easy process.

Loan Against Property offered by Bank of India comes with the following features and benefits:

• Multipurpose loan: The Bank of India sanctions loans against Property for the following reasons:
  • For credit needs of commercial activity, trade, other general business or profession, and for any bonafide requirements.
  • For educational expenses of family members or relatives
  • For undertaking renovation/repairs/extension to the existing residential/commercial property
  • To purchase or construct a residential house/flat
  • To purchase a plot of land for constructing a house or premises for business or commercial property loan
  • To repay existing loans obtained from other banks or financial institutions
• Who can avail the loan: The loan is available for:
  • People who are engaged in trade, commerce, and business
  • Professionals, self-employed, and individuals with high net worth
  • Salaried people
  • Proprietary firms, partnership firms, Pvt. /Public Ltd. Companies, HUFs (not partnership firms where HUF is a partner), Staff members, Societies.
  • NRIs, subject to compliance of RBI's/Bank's guidelines
• Maximum Age Limit: This is the maximum age acceptable to the bank at the end of the repayment tenure.
  • For salaried individuals who are in permanent service: 60 years
  • For proprietary concerns/self-employed/non-salaried individuals: 70 years
• Who cannot apply for the loan: Loan Against Property from the Bank of India cannot be availed by:
  • Developers/builders/real estate agents/promoters for real estate activities like purchasing land or construction, to sell or hold real estate stock for sale/ resale purposes.
  • The facility is not extended for speculative reasons including investing in equities
  • NBFC, Trust, and Partnership firm where HUF is a partner

• Type of advance: The advance is available as Demand/ Term Loan, Overdraft (Reducible/Non-Reducible).
• Type of property: You can avail a Loan Against Property from the Bank of India against your residential house, flat, the plot of land as well as commercial properties such as office, factory, warehouse, etc. The amount of loan granted by the Bank of India can also be used towards the purchase of property that is under construction in residential or commercial buildings. However, these loans are approved by the bank only after acquiring the mortgage rights on the mentioned property.
• Multiple forms of disbursals: Bank of India Loan Against Property are disbursed in the form of term loans or reducible/non-reducible overdraft facility. In the case of a reducible overdraft facility, the drawing power of the customer is decreased every month, in order to ensure that 100% repayment of the loan is made at the end of the repayment period.
• Collateral: Bank of India needs a legal primary mortgage charge created against the property that has been offered as the collateral. The bank can also demand third party guarantee as to its sole discretion.
• Margin on the value of the property: In order to cover the risks involved, Bank of India offers Loan Against Property as per its LTV (Loan to Value) ratio. Presently the margin requirements for Bank of India Loan Against Property are:
  • Zero margins on limit given based on Circle Rate/ Registration value of the property (100% loan amount).
  • 60% of market value (40% of loan value)
  • 50% of the distress sale value (50% amount of loan)

Bank offers the amount, which is the lowest of the above-mentioned parameters.

• Loan amount available: The amount of loan sanctioned by the Bank of India depends on the value of the security, margin requirements, the net take home pay, the repayment capacity of the borrower, and the type of loan applied for.
  • Loans to individuals (salaried/non-salaried)/self-employed professionals: For customers falling under this category, Bank of India offers loans amounting to 48 times of average net take-home salary as per his/her IT return or 4 times of the individual's net annual income including other sources of income.
  • Loan to doctors /joint account with all the holders being doctor: The sanctioned amount of loan will be 4 times of the average net annual income of last 2 to 3 years based on the IT returns of the doctor for the last 2 to 3 financial years.
  • Loans to partnership firms/ companies/proprietorship firms: The amount of loan sanctioned depends upon the nature of the loan that is applied.
  • For reducible overdraft facility: The amount of loan is 4 times the average net annual income of last 2-3 years based on the IT returns of the last 2 to 3 financial years.
  • For non-reducible overdraft facility: The sanctioned amount of loan will be 20% of the total annual turnover based on the audited balance sheet for the last year.

The interest rates of the Bank of India Loan Against Property depends on and linked to the 1 year Marginal Cost of Fund Based Lending Rate (MCLR) of the bank.

The current BOI 1-year MCLR is 8.80% w.e.f 1.12.2023.

The applicable rates of interest are as follows:

Bank of India generally provides 3 types of Loan Against Property. They are mentioned as below:

• Loan against residential property
• Loan against commercial property
• Loan against industrial property

The amount of loan totally depends upon the value of the property. The loan sanctioned also depends upon the salary or annual income of the applicant. The maximum amount of loan provided on each type of property differs as all of them are not the same. Applicants will be liable to pay EMIs based on the amount of loan sanctioned by the bank to them.

• The star loan against property is available to:
  • People who are engaged in trade, commerce, and business
  • Professionals, self-employed, and individuals with high net worth
  • Salaried people
  • Proprietary firms, partnership firms, Pvt. /Public Ltd. Companies, HUFs (not partnership firms where HUF is a partner), Staff members, Societies.
  • NRIs, subject to compliance of RBI's/Bank's guidelines
• The maximum age acceptable to the bank at the end of the repayment tenure is:
  • For salaried individuals who are in permanent service: 60 years
  • For proprietary concerns/self-employed/non-salaried individuals: 70 years

Bank of India, like every other financial institution, requires certain documents for loan against property from the applicants along with the application:

• Completely filled loan application
• 2 passport-sized photos
• Proof of identity
• Proof of residence
• Salary slips - For salaried applicants
• Non-salaried borrowers are required to present the proof of business address
• Statement of bank accounts for the previous 6 months
• Previous banker's signature document of identification
• Personal assets and liabilities statements in the Bank's standard format
• Short write up of securities charged in respect of other loans availed from the bank/other banks/housing and/or auto finance companies/other sources.

Processing fees levied by Bank of India for a Loan Against Property are:

The most convenient method to calculate the EMI for Bank of India Loan Against Property is using MyMoneyMantra's EMI Calculator. Simply visit the MyMoneyMantra and select Loan Against Property EMI Calculator mentioned under Financial Tools. Simply enter the required information, and you will be provided with the amount of EMI you are expected to pay for a specific loan amount, interest rate, and loan tenure.

You can contact Bank of India through:

Toll-free number: 1800-220-229 or 022-4091-9191

Bank of India Corporate Office Address: 

Star House, C - 5, "G" Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051, Maharashtra, India

Bank of India Official Email ID: 

HeadOffice.CSD@bankofindia.co.in