Bank of India Loan Against Property
The Bank of India, one of the country’s premier financial institutions offers a wide range of loan products. The Bank of India loan against property (LAP) stands out as a significant tool providing borrowers with the opportunity to unlock the value of their real estate assets. The rate of interest on Bank of India LAP starts from 11.35% per annum and one can avail this loan for a tenure of up to 15 years.
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Bank of India Loan Against Property Interest Rate
Understanding the nuances of the Bank of India LAP interest rate helps potential borrowers assess the loan’s affordability and align their financial strategies accordingly, ensuring informed and effective borrowing decisions. One can get up to 40% of the property value as the maximum loan amount under the LAP scheme.
The Bank of India loan against property interest rate 2024 is mentioned below for your quick reference:
| Rate Package | Rate of Interest |
|---|---|
| Floater | 11.35% - 12.85% p.a. |
| Fixed | 11.35% - 12.85% p.a. |
Bank of India Loan Against Property Eligibility Criteria
The eligibility criteria for obtaining an LAP are of paramount importance, serving as the foundation upon which the lending decision is made. These are general criteria such as the applicant’s age, income, credit score, nationality, and so on. Have a look at the table below to understand the Bank of India loan against property eligibility:
| Eligibility Parameters | For Salaried Individuals | For Self-Employed Individuals |
|---|---|---|
| Age Range (in years) | 21 - 65 years | 21 - 65 years |
| Nationality | Indian Residents | Indian Residents |
| Minimum Income Earned | Nothing specific | Nothing specific |
| Credit Score | 675 or above (preferred) | 675 or above (preferred) |
Bank of India Loan Against Property Fees and Charges
Bank of India, like any other lender, charges a fee, which is often a small percentage of the loan amount, to cover administrative costs, mitigate risks, and ensure the sustainability of their lending operations. The Bank of India loan against property processing fees and other charges can be clearly understood through the table below:
| Processing Fee | 1% of the loan amount (minimum Rs. 5,000, and maximum up to Rs. 50,000) |
|---|---|
| Mortgage Overdraft |
|
| Rural Area Charges | 75% of the normal applicable charges |
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Compare Interest Rates on Loan Against Property for Top Banks & NBFCs
Doing a little comparison when buying or getting any service is crucial if you don’t want to repent at a later stage. Hence, even if you have made up your mind to apply for a Bank of India LAP scheme, we urge you to go through the table below to see a comparison of interest rates and processing fees with other top lenders for the same scheme:
| Bank/ NBFC Name | Rate of Interest | Processing Fee |
|---|---|---|
| Bank of India | 11.35% - 12.85% p.a. | 1% of the loan amount |
| PNB Housing Finance | 9.25% - 15.00% p.a. | 2% of the loan amount + GST |
| LIC Housing Finance | 9.50% - 11.55% p.a. | 1% of the loan amount |
| Bajaj Housing Finance | 9.75% - 18.00% p.a. | Up to 4% of the loan amount + GST |
| SBI | 10.00% - 11.30% p.a. | 1% of the loan amount |
| ICICI Bank | 10.85% - 12.50% p.a. | 1.50% of the loan amount or Rs. 11,000 (whichever is higher) |
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Documents Required For Bank of India Loan Against Property
Every lender asks for a certain set of documents to assess the creditworthiness of an applicant who has applied for a LAP plan. These usually include proof of identity, address, income, age, and property. Bank of India loan against property documents required list is shared below for your understanding:
1. For Salaried Loan Applicants
- Identity Proof: Aadhaar Card, Passport, Voter ID Card, PAN Card, etc.
- Address Proof: Latest Electricity Bill, Latest Telephone Bill, Aadhaar Card, Driving License
- Income Proof: Salary Slips for 3 months, Bank Account Statements for 6 months, Latest ITR/ Form 16 of the previous 3 years
- Documents of Property: Approved Plan, Title Deeds, No Encumbrance Proof, and so on
- Other Documents: Duly-Filled Application Form with recent passport-size photograph, Processing Fee Cheque, Appointment Letter
2. For Self-Employed Loan Applicants
- Address or Identity Proof: Aadhaar Card, PAN Card, Passport, and Voter ID Card
- Income Proof: ITR/ Form 16 for 3 years, Profit and Loss Account Statements and Balance Sheets for 3 years, Savings Account Statement/ Current Statement of the Business Entity for 6 months, Business Profile, Form 26AS
- Documents of Property: Approved Plan, Title Deeds, No Encumbrance Proof, etc.
- Other Documents: Duly Filled Application Form with a recent passport-size photograph, Processing Fee Cheque, Partnership Deed if the business entity is in partnership, and the List of Stakeholders
FAQs
Eligible borrowers can get up to 40% of the property value as Bank of India’s loan against property.
If a borrower fails to make a loan against property payments on time, he/she may incur penalties on the same which will impact the credit score negatively. Moreover, the lender may put the property for auction.
Yes, you can transfer your existing LAP from another bank to the Bank of India through a process known as a balance transfer.
To increase the eligible loan amount you must improve your credit score and show higher income sources. Moreover, opting for a longer tenure and with a co-applicant makes you eligible for a higher loan amount in an LAP scheme.
Yes, you can apply for a Loan Against Property if you own a commercial property jointly with others. However, all the co-owners must agree to mortgage the property and become the co-applicants for the loan.
Yes, the Bank of India offers a moratorium on a loan against property EMI. However, we suggest you confirm the same with the bank officials.