BOI loan against property: eligibility, types, interest rates, how to apply

BOI loan against property: Bank of India offers Loan Against Property starting at interest rate of 10.50% which is one of the best mortgage loan rates in India. The current 1 Year

Raju Choudhary

BOI loan against property

BOI loan against property: Bank of India offers Loan Against Property starting at interest rate of 10.50% which is one of the best mortgage loan rates in India. The current 1 Year MCLR benchmark rate is 8.30%. BOI commits to nation-building is complete & comprehensive. Bank of India is actively involved since the year 1973 in non-profit activity called Community Services Banking. All the BOI branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. BOI business is more than banking because they touch the lives of people anywhere in many ways.

The loan that BOI offers against properties can go from Rs. 25 lakhs rupees to over Rs. 1 crore rupees depending on certain conditions set forth by the bank. These loans can also be repaid over a comfortable period ranging from 5 years to 10 years. Another thing that these loans offer is complete transparency which means that there are no hidden charges levied.

BOI property loan details:

Interest rates9.45% – 11.00%
Processing fees2.00% or Rs.50000/- Maximum
Prepayment chargesNil
Repayment optionsUpto 12 years
Maximum loan amountRs.1 Crore
Loan Margin60%
Min. IncomeRs.12000 per month
Lowest EMIRs. 1,224 per lakh

Types of Loans

There are various types of loans that Bank Of India offer under the preview of loans against properties. Some of these loans are general loans against properties while other are more specific about the people who can actually take the loan. Even the approach to taking these loans can differ from one loan to another.

BOI Star Loan Against Property Scheme


  1. To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements;
  2. To meet educational expenses of family members including near relatives
  3. To undertake repairs/renovation/extension to the residential/commercial property;
  4. To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use *;
  5. For Repayment of existing loans availed from other Banks / FI’s conforming to the extant guidelines regarding “takeover” of account.


  1. Suitable declaration to be submitted by the applicant regarding the purpose.
  2. The facility not extended for speculative purposes including investing in equities;
  3. The facility is not extended to builders/developers/promoters/real estate agents for real estate activities such as purchase of land/construction with intent to sell or holding real estate stock for sale / re-sale purposes.
  4. *Advance for purpose (d) above to be based on mortgage of property already owned by the proponent.


People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, Proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs- subject to compliance of Bank’s/RBI guidelines.

INELIGIBLE PERSONS: NBFC, Trust and Partnership firm where HUF is a partner are not eligible for advances under this scheme.


  • a) Individuals in permanent service max. 60 years.
  • b) For Proprietary concerns/Self Employed/non-salaried people – Maximum -70 Years

    (Age limit is the maximum age at the end of the repayment Period);


Demand/Term Loan , Overdraft (Reducible/Non-Reducible)


The quantum of advance to be related to the value of security, margin requirement , take home pay and repayment capacity of the proponent , subject to limits as under :-

Demand/Term LoanOverdraft
Individual-Salaried/ Self-employed/ Professionals




Doctor/s- in case of joint accounts all to be doctors




Others i.e. Proprietorship/ Partnership Firm/Company etc.




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PROCESSING CHARGE (Exclusive of Service Tax):

For Loan (Repayable by installments)One time @ 1% of sanctioned loan amount Min. Rs.5, 000/- and Max. Rs.50, 000/-.Plus S.T.
For Mortgage OD (Not reducible )0.50% of the Sanctioned/Reviewed limit min.Rs.5,000/- and max. Rs.30, 000/- on annual basis. Plus S.T.
For Mortgage OD (Reducible)a) 0.50% of the Sanctioned limit Min.Rs.5,000/- and max. Rs.30, 000/- for 1st year at the time of original sanction. . Plus S.T.
b) 0.25% of the Reviewed limit Min.Rs.2,500/- and max. Rs.15, 000/- for subsequent years. . Plus S.T.
For Rural Areas –Processing charges will be 75% that of normal applicable charges in respect of loans availed by borrowers from rural areas from the Rural branches. Plus S.T.

documents required forbBOI Loan against property

For Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof – Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

For Salaried employee

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof – Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit.

Property documents

  • Registered Sale Deed/ Conveyance/ Lease Deed
  • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
  • Latest House Tax Return/ Receipt
  • Approved Building Plan from Municipal Corporation

Loan against Mortgage of Immovable Property

This is a loan that can be taken by anyone who owns property in a city and is in need of money urgently. The main features of this loan are:

  • The loan amounts are decided based on the classification of the city.
  • Tier I and II cities have a maximum loan amount of Rs. 2 crore while other cities have a limit of Rs. 1 crore on the loans.
  • The minimum amount that can be borrowed is Rs. 25,000.
  • For certain states the maximum amount available is Rs. 50 lakhs.
  • The margin for this loan is 40% of the market value of the property.
  • The repayment period for this loan can extend up to 120 months.
  • There is no prepayment charge for this loan.
  • It also comes with a maximum processing fee of Rs. 50,933

Eligibility criteria for BOI Loan against Property

Eligibility CriteriaDetails
Age21 to 60 years
Loan AmountRs. 10 Lakh to Rs. 5 Cr
Minimum years of business existence0 years
Minimum work experience0 years
Minimum Credit Score650 and above
Loan to Value RatioUpto 40%
FOIR (Fixed Obligations to Income Ratio)0.65

There are certain eligibility criteria that need to be met for each of the loans on offer by BOI and these are:

  • Those who work in the agricultural industry can apply for the loan against properties.
  • Anyone who is either salaried or self-employed can apply for these loans.
  • The applicant will have to be under the age of 60 years.
  • In the case of a regular loan against property, the net monthly income needs to be at least Rs. 12,000 or more for salaried individuals and for self-employed individuals it needs to be a minimum of Rs. 1.5 lakhs per annum.
  • In case of the Rent Plus loan, only those who rent their property to banks, MNCs or large or medium sized companies can apply for the loan.
  • For loan against mortgage of immovable properties the applicants will need to have a net monthly income of Rs. 25,000 or more if they are salaried.
  • For the same loan, self-employed individuals will need to have a net annual income of more than Rs. 3 lakhs.

Loan against Property Interest rates for BOI

The interest rate charged on these loans is calculated by adding an additional amount to the base rate being offered by the bank. The current base rate for BOI is 9.7% per annum which means that the interest charged is:

Loan against mortgage of immovable property

  • 60% per annum (base rate + 2.9%) for loans of up to Rs. 1 crore.
  • 85% per annum (base rate + 3.15%) for loans that exceed Rs. 1 crore.


In addition to interest rates, property loan also carry some other charges which include:

  • Foreclosure Charges – These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Bank of India allows prepayment of loan against property with Nil prepayment charges.
  • Processing Fee – Bank of India charges a processing fee of 1.00% loan amount.
  • Other Charges – Bank also charges technical and legal charges which are explained to the customer during the loan process.

Loan against Property

  • In the case of a loan against propertythe base rate being offered by the bank is 85% and the interest rate is the base rate plus 2.50% above the floating base rate.
  • This interest rate is also applied on a daily or monthly reducing balance basis.

One thing should be kept in mind is that the interest rates are subject to banks regulations and can change without notice, hence it is always a good practice to check the current rates with the bank before applying for the loan.


What is the repayments option available and how long can it be repaid?

Customer can repay the loan through electronic clearance system, more popularly known as ECS, by instructing Bank of India to deduct monthly instalments from the given bank account. Alternatively, you may repay the loan amount through post-dated cheques by using various financing schemes.

What are the maximum and minimum amounts that you can avail as a loan from BOI against your property?

Customer can avail a property loan ranging from Rs. 5 lakh to Rs. 5 crore depending on the value of your property against which you want to avail the mortgage loan. The assessment of the property is done by BOI before the loan is disbursed.

What type of property can be used as collateral to avail the loan?

Self-occupied residential property, commercial properties such as offices and shops and alternate property such as schools, hospitals, residential houses, industrial properties, and all such other properties can be used as collateral for availing a loan against property. 


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