The amount of BOI home loans sanctioned depends upon the purpose of the loan, income, repayment capacity and the area of residence of the applicant.
- Area of Residence
- An Indian applicant residing in any city apart from major metros such as Mumbai, Kolkata, New Delhi and Chennai, can apply for a maximum Bank of India home loan amount of Rs.300 lakhs, whereas, applicants from the mentioned metros can apply for a Bank of India Home loan for a maximum amount of RS.500 lakhs.
- The minimum Bank of India home loan amount for applicant’s residing in metro and urban cities is set at Rs.1 lakh.
- Purpose of Bank of India home loan
- For all loans availed towards extension, renovation, or repairs to the applicant’s existing house/flat a maximum loan of amount Rs.50 lakhs can be sanctioned.
- For Bank of India home loan availed towards purchase of a plot a maximum loan of Rs.300 lakhs can be sanctioned.
- For Bank of India home loan availed towards the purchase of household articles (in association with the existing home loan ) for decoration of the applicant’s home/flat , a maximum loan amount standing at the rate of 15% of the home loan can be availed. This is applicable in the case of unsecured BOI home loans.
- However, in the case of secured Bank of India home loan a maximum loan amount of Rs.5 lakhs can be sanctioned for the purpose of redecoration of the applicant’s home/flat. The interest rate on this loan will be the same as the interest on the home loan. The BOI Home loan repayment period is set at a maximum of 10 years, including the moratorium period, if any.
- In cases of Bank of India home loan issued towards the installation of Solar PV’s at home, the maximum loan amount is issued based on the limits set by the bank. The interest rate on this loan will be the same as the interest on the Bank of India housing loan scheme.
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- Income and repayment capacity: The amount of loan depends upon the applicant’s business profile and his income.
- A Salaried professional is eligible for a maximum loan amounting up to 72 times of his gross monthly salary or up to 6 times of his gross monthly income as pert latest IT returns.
- A non-salaried self-employed professional is eligible for a maximum loan up to 6 times of his gross monthly income as pert latest IT returns.
- In case of loans extended to HUF’S, Proprietorship firms, Partnership firms and companies, the applicants are eligible for a maximum loan amounting to 6 times of their cash accruals (depreciation amount+ profit after tax) as per latest Balance sheet and profit-loss account.
- Net Take Home Pay: In case of Bank of India Home loan applied by individuals, the amount of loan to be sanctioned depends upon the net home take pay of the applicant. Net take home pay is the actual pay that the applicant receives after taking all the deductions into account. Deductions include the applicant’s liabilities including EMI’s of existing loans, if any, and the EMI of the proposed loan.
- For individuals earning a gross monthly income (GMI) up to Rs.1 lakhs, the minimum Net home take pay should stand at a minimum of 40% of the applicant’s GMI.
- For individuals earning a gross monthly income (GMI) lying between RS.1 lakhs to RS.5 lakhs, the minimum Net home take pay should stand at a minimum of 30% of the applicant’s GMI.
- For individuals earning a gross monthly income (GMI) above RS.5 lakhs, the minimum Net home take pay should stand at a minimum of 25% of the applicant’s GMI.
- In case of loans applied by HUF/Proprietorship firms/Partnership firms/Companies the minimum DSCR required is 1.5.