Professional Documents
Culture Documents
1. Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well
as for renovation/ repair/alteration/addition to house/flat Maximum loan amount is Rs.500 lacs and
repayment ranges up to 30 years, with reasonable margin and nominal processing charges. No
commitment /administrative charges
2. The loan is available at very competitive rates of interest, currently available in the industry.
3. Option for different EMI amounts for different periods during tenure of loan to suit customers
repayment capacity
4. Prepayment of Loan permitted. No prepayment charges under floating rate option
5. Interest is calculated on daily balance basis which is of great advantage to customer as it results in lower
interest amount.
6. Loan to NRIs as well as Persons of Indian Origin.
7. Simplified application form/procedures for convenience of customers, and speedy approvals.
8. Free Personal Accident Insurance cover (Renewed at banks discretion)
9. Life Insurance Cover to borrowers for Loan Protection(optional)
10. Please visit our nearest Branch and avail loan to own your dream home
Eligibility
Salaried employees, Professionals, Self-employed persons. Requests are also considered from NRIs, PIOs,
HUF, and Prop. Firm, Partnership firms and corporate
Purpose
To purchase/construct house/flat
To renovate/extend/repair existing house/flat.
To purchase a plot of land for construction of house
Take over of home loan from other banks/FIs- subject to conditions
Quantum of Loan
For construction/purchase of a house/flat-Rs.300 Lacs (Rs.500 Lacs in major metros viz. Mumbai, Kolkata,
New Delhi and Chennai)
Loan Limit
For Partnership firms & Corporate Borrowers Processing charges will be double that of individuals.
For Rural areas Processing charges will be 75% that of applicable to individuals in respect of loans availed by
borrowers from rural areas from the Rural Branches. Legal Expenses/Valuation Charges/Stamp Paper Charges
etc., At actuals.
Margin
For
Loan
upto
For Loan up to
Margin
Rs.20 Lacs
Rs.75 Lacs:
Rs.75 Lacs:
15%
20%
25%
20%
20%
25%
Where cost of house exceeds Rs.10 lacs Margin is calculated on pure cost of the house/flat excluding stamp
duty, Registration and other documentation charge.
For houses with cost not exceeding Rs.10 Lacs expenses towards stamp duty, registration and other
documentation charge can be included in the project cost.
Repayment(can be customized)
Highly flexible - maximum 30 yrs. including moratorium period upto 36 months (max.) in monthly
installments, including Banks approved projects. Loan to be normally repaid before date of retirement in case
of salaried persons and before attaining 70 years of age in case of others. Repayment upto 70 years also allowed
to salaried employees having assured post retirement income
Eligible Quantum of Loan/ EMI
Calculation of quantum of loan is related to Income/repayment capacity of proponent/borrower
Salaried Employees :
HUF/Proprietorship
Company
/Partnership
In case of Individuals
Net Take Home pay (NTH)/income (net of all deductions including EMI of Proposed loan) is stipulated as
under :i. Gross Monthly Income up to Rs.1 Lacs NTH Minimum 40%
ii. Gross Monthly Income over Rs.1 Lac up to Rs. 5 Lacs NTH Minimum 30%
iii. Gross Monthly Income over Rs.5 Lacs NTH Minimum 25%
In case of HUF/Proprietorship/ Partnership firm/Company: DSCR should be minimum 1.5.
Rate of Interest (Floating ROI- linked banks base rate , p.a. at monthly rests)
09.95%
Security
Mortgage/Equitable Mortgage (1st charge) on land/flat/house. Third Party guarantee (if mortgage could not be
created before or at the time of disbursement).
Special Features
Free Personal Accident Insurance cover for the borrower (covering accidental death as well as
permanent total disablement) as per terms of insurance policy covering loan outstanding as on the date
of accident(Renewal at the discretion of the Bank).
Life Insurance cover to housing loan borrowers , at affordable premium against risk of death during
tenure of loan under Group Insurance Scheme in tie up with Star Union Dai-Ichi Insurance Co. Ltd. at
borrowers own expenses & option.
Loan furnishing the house/flat at a rate of interest as applicable to housing loan under the scheme
Loan for installation of Solar PVs at home loan ROI
Existing SB/CD customer with average balance of Rs.5000/- for last one year and New customer who opens
a new SB/CD account with opening balance of Rs.5000/-. Present /prospective Salaried Employees whose
salary is credited to BOI Branch and repayments are proposed to be made from this account, irrespective of
minimum balance & all other self-employed persons, Professionals like Doctors, Lawyers, Engineers,
Chartered Accountants and business man having regular source of income. SB/CD Account to be
maintained throughout the tenure of the loan.
Minimum Home Loan
For salaried Minimum Rs. 5 Lacs
For other Minimum Rs.10 Lacs
Maximum Limit As per normal home loan scheme.
Type of Loan
Home Loan Overdraft- Account. The account will be linked to SB/CD account of the customer and balance
above a threshold limit is automatically transferred to the Home Loan Overdraft Account in multiples of
Rs.5000/- .
(There will be sweep out of funds from SB/CD Accounts but there will be no sweep in from loan account)
The threshold limit to be decided by the customer in advance and the same to be above the minimum
balance requirement of concerned account. The borrower could also directly deposit surplus amount to the
loan account.
Drawing Power (DP)
No. credit is allowed till full disbursement is made or borrower conveys his firm intention to discontinue
further availment of loan, which cannot be amended subsequently ; DP is fixed in the account to correspond
to borrowers eligibility depending on the progress of work completed less stipulated margin. Outstanding
should not exceed DP. After commencement of EMI, Drawing Power in the Overdraft will be reduced on
monthly basis to the extent of principal component of the EMI so that the overdraft is liquidated at the end
of the loan tenure (Interest component of the EMI remitted will service interest obligations ); Drawing limit
and sanction limit to be reduced simultaneously on every repayment of EMI.
Repayment
Borrowers will have to remit Equated monthly installments (EMIs) as in the case of usual home loans,
through standing instructions for debit of account or PDCs/ECS, as per extant instructions.
Repayment by standing instructions for debit of account or Post Dated Cheques as per extant instructions.
Payment of EMI every month is compulsory, since it is OD account and any default in repayment will lead
to slippage of accountto NPA category.
Facilities available for operation of account
Cheque Book, Debit-Card, Internet Banking Facility , Mobile Banking etc., only after full disbursement and
one after completion of moratorium period. Branch authority to provide authorization through system for
the same.
Benefit to the customer
i.
The surplus amount, above threshold limit , in SB/CD account will be automatically transferred to
Home Loan Account resulting in reduction interest burden ;
ii.
iii.
iv.
v.
The home loan account can be operated as an overdraft account upto the surplus amount deposited in
the account.
The surplus amount deposited could be utilized for personal /business purpose ;
The scheme offers liquidity as well as interest relief.
Since deposit of surplus funds results in low interest liability,larger portion of EMI will go towards
reduction in principal loan amount. This will ensure early closure of Home Loan Account.
Over
Rs.75
Lacs up
to
Rs.100
Lacs
Over
Rs.100
Lacs
BASE RATE
10.20
10.20
10.20
PREMIUM
0.00
0.25
0.50
10.20
10.45
10.70
Processing Charges
For Individuals
Loan Limit
[PIOs to substantiate PIO status by current passport indicating birth place in India, copy of Indian Passport
held earlier , Parents or grand parents passport with details substantiating his claim as PIO or copy of PIO
Card ]
Co-Borrowers
All co-owners to be co-applicants for the loan. Co-applicant also could be a resident Indian in which case
his/her income also could be considered for calculation of quantum of loan /repayment capacity . However ,
foreign national of non Indian origin can not be included as a co-owner or co-borrower .
Purpose
To purchase/construct house/flat
To renovate/extend/repair existing house/flat.
To purchase a plot of land for construction of house
Take over of home loan from other banks/FIs- subject to conditions .
Quantum of Loan
For construction/purchase of a house/flat-Rs.300 Lacs (Rs.500 Lacs in major metros viz. Mumbai, Kolkata,
New Delhi and Chennai)
Repairs/renovation/extension to house/flat Rs.50 lacs
Loan Limit
For Partnership firms & Corporate Borrowers Processing charges will be double that of individuals.
For Rural areas Processing charges will be 75% that of applicable to individuals in respect of loans availed
by borrowers from rural areas from the Rural Branches. Legal Expenses/Valuation Charges/Stamp Paper
Charges/CERSAI charges , etc., At actuals.
Margin
For Loan upto Rs.20
Lacs
1st House/Flat
25% on pure cost of the house excluding stamp duty, registration etc.
Margin
Full amount of margin(own contribution ) to be paid by the borrower before 1st disbursement of loan .
Margin(own contribution to be paid by the borrower by remittance from abroad through normal banking
channels or out of funds in his NRE/FCNR/NRO Account in India. Such payments can not be made by
travelers cheque or by foreign currency notes.
Repayment (can be customized)
Highly flexible - maximum 30 yrs. including moratorium period upto 36 months (max.),[based on number
of floors/in case of township projects] in monthly installments, including Banks approved projects. Loan to
be normally repaid before date of retirement in case of salaried persons and before attaining 70 years of age
in case of others. Repayment upto 70 years also allowed to salaried employees having assured post
retirement income
Eligible Quantum of Loan/ EMI
Calculation of quantum of loan is related to Income/repayment capacity of proponent/borrower
Salaried Employees :
HUF/Proprietorship
Company
/Partnership
Firm/
Up to 30 yrs.
9.95%
10.20%
Security
Mortgage/Equitable Mortgage (1st charge) on land/flat/house.
CreditInformation Report
Report to be generated from CIBIL or any other approved credit rating agency in India. Also , the applicant
to submit credit report from a Credit Rating Agency from the country in which the applicant resides-if such
reports are easily available . The report is available in countries like USA, Canada, UK, Germany, Malaysia,
Hong kong, Singapore, Japan, South Africa , South America etc. This stipulation may be waived by the
sanctioning authority in respect of those countries where such reports are not easily available
Mode of repayment
Repayment to be made by remittance from abroad through normal banking channels for out of funds in his
NRE/FCNR/NRO Account in India. Ideally standing instructions to be provided for recovery of money from
NRE /NRO Accounts .
Close relatives (as defined under Section 6 of the Companies Act 1956) of the borrower in India also could
repay installments of such loan , interest and other charges , if any, through their bank account directly to
borrowers NRI Home Loan Account with the Bank.
Rental income of the property , wherever it is considered for calculation of eligibility also could be credited
directly to the credit of home loan account.
Mode of creation of security /execution of documents
The creation of security /execution of documents could be undertaken by the applicant borrower if he is
present in the country . Creation of security / execution of documents could also be undertaken by Power of
Attorney holder of the applicant . Where Documents are signed by the POA holder following measures to be
complied with :
The documents to be executed by the POA holder for and on behalf of the NRI. After execution of
documents a letter written by the NRI confirming execution of the documents by the POA including creation
of security by way of mortgage to be obtained, as per specimen approved by the Bank
Documents to be submitted along with loan application
Photocopies of :
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
Cheque for processing charge / charges for title search report /valuation report /CERSAI registration
charges and other charges ,if any. Excess ,if any, to be refunded to the borrower .
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.
xviii.
xix.
For Salaried :
Work Permit ;#
Full Address of the employer along with name and contact details of department head /employer ;#
Employment Contract along with translation in English ;#
Copy of identity card issued by current employer , duly attested by the Employer ;#
Copy of Continuous Discharge Certificate(CDC) for applicants employed in Merchant Navy;#
Full details past employment records, if any-self attested;
Details of Overseas Bank Account for previous one year where salary is credited along with Bank
Account in India , if any-self attested ;
Latest salary slip in original ;#
Annual Income Tax Return filed as per rules applicable in the country where he resides- for last 2
years ;
xx.
xxi.
Free Personal Accident Insurance cover for loan upto Rs.500 lacs for the individual borrower
(covering accidental death as well as permanent total disablement) as per terms of insurance policy
covering loan outstanding as on the date of accident(Renewal at the discretion of the Bank).
Life Insurance cover to housing loan borrowers , at affordable premium against risk of death during
tenure of loan under Group Insurance Scheme in tie up with Star Union Dai-Ichi Insurance Co. Ltd.
at borrowers own expenses & option.
Loan furnishing the house/flat at a rate of interest as applicable to housing loan under the scheme
Other Attractive Features
RATING EXERCISE: The proponent will be eligible for loan subject to obtention of minimum marks or
minimum entry level norm fixed by the bank .
Eligible customers
High Net worth Individuals, Firms/ Corporate for residential accommodation of their partners/directors,
having minimum average gross income of Rs.1crore and above during the last 3 years as per audited balance
sheet /IT Returns
2
Margin
25% on pure Value of Property i.e. on cost of construction /acquisition /renovation /extension etc.,( No
other costs such as stamp duty, registration charges, taxes, charges etc., to be added to the cost of property
while calculating margin).
5
Processing Charges
All inclusive one time processing charge of Rs.50, 000 or maximum as per Star Home Loan Scheme,
whichever is higher. No other charges will be applicable except actual out of pocket expenses.
All other norms As per Star Home Loan Scheme .