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Bank of India Star Pravashi Home Loan

Bank of India, founded in 1906, attained the status of being a nationalized bank in the year 1969. It is considered as one of the top 5 nationalized banks in India. The bank has about 5000 branches across India and serves the urban, semi-urban, rural communities in equal measure. Bank of India has an overwhelming presence across 22 foreign countries spread over 5 continents. BOI is known to conduct the deposits and lending businesses with integrity and ethics. The bank is known to provide customized solutions to its customers and offers the best deals and offers given that they have huge volumes of business.

Among the many loans that BOI extends is the home loans which enable individuals and corporates to enliven their dream of owning their home. Buying a home is not just a financial decision, it is also an emotional one. BOI extends the financial assistance to ensure that this aspect is well taken care of. The huge fund outlay required can take a toll on any individual. Often, the interest rates are so high that the individual chooses not to borrow and postpones his intent to buy a home of his own. While there may be many arguments on rented or leased residence vs. own house, the argument which wins hands down is the safety aspect. BOI has customized plans which offer the best interest rates, fees and charges to customers.

While the resident Indian has it tough with the documentation and loan processing, it becomes even more difficult for an NRI (non-resident Indian) who intends to invest in real estate property in India. Keeping in mind their specific requirements, Bank of India Star Pravashi Home Loan is a home loan plan which is specifically designed for the NRI community.

About Bank of India Star Pravashi Home Loan

An NRI who has in the past applied for home loans will know that the norms for verification is more stressful as compared to that of resident Indian. The source of income being different countries, the procedure complicates the dynamics of the home loan eligibility. The credit risk for the bank also involves macro-economic factors like country risk, currency risk etc., Lenders are required to look at the loan applicant’s income details with a different perspective. The authentication / verification also becomes complicated since, the place of residence and spending pattern/credibility cannot be easily established.

Bank of India has a more empathetic approach to this ordeal of NRIs and has a customized solution on offer. Bank of India Star Pravashi Home Loan is a solution which is specifically aimed at providing BOI home loan for NRIs with greater ease and convenience.

Benefits of Bank of India Star Pravashi Home Loan

One of the key features of this home loan is that it offers competitive interest rates and ease of documentation and verification. Apart from this, there are additional features unique to this home loan exclusively extended to its NRI customers.

  • Loan for home furnishing – Under the Pravashi scheme, the individual can apply for home furnishing loan. Interior costs for a house could be quite high, especially if you want it to be done tastefully by a professional. Most banks do not extend this type of loan to an NRI, however, under the Pravashi home loan scheme, the NRI applicant can avail the home furnishing loan at the same interest rate as in the case of home loan.
  • Life insurance and personal accident insurance: Normally, insurance for an NRI is not extended with ease. However, life cover is available for borrowers of Pravashi home loan. The premium is reasonable and reduces the risk of eventuality over the long term. The insurance is extended in partnership with Star Union Dai-lchi insurance Corporation limited. However, the NRI applicant may choose to opt for the insurance as required.
  • By availing the Pravashi home loan scheme, the NRI borrower can also avail personal accident insurance cover. The cover will be available for loan upto Rs. 5 crores per individual borrower. The insurance renewal will be at the discretion of the bank.
  • Reducing balance on loan: The loan is extended with the inbuilt facility where the excess funds in the savings / current account which is associated with the Pravashi home loan account will be transferred. This will correspondingly reduce the interest rate burden, thereby the loan account will use the reducing balance method on the loan on a daily basis. This will enable the customer to easily reduce his EMI over a period of time as his disposable income increases.
  • Flexi-payment options – The borrower will have the option of increase or decrease the EMI. This will help \he borrower to adjust the EMI based on the income.
  • Loan extended for multiple objectives – The Pravashi home loan as stated earlier can be availed for purchase of home, refurbishing home, renovation or extension of home, purchase of plot with the intent to build a house, refinance existing home loan, switching of loan from other banks etc.
  • Quantum of loan – The value of loan advanced can go upto Rs. 3 crores in rural areas and semi-urban areas. For urban areas, the maximum loan advanced is Rs. 5 crores. A home loan upto Rs. 50 lakh can be availed for any type of renovation, extension, repairs and maintenance work in the existing home. Upto Rs. 1 crore is extended for purchase of plot where in the sole purpose is to build a house. Further, upto Rs. 5 lakh or 15% of the quantum of loan is extended for buying household items like furniture, gadgets, kitchen ware etc., The maximum tenure for this specific loan is 10 years. The minimum loan amount is Rs. 1 lakh especially if you are living in urban region.

Eligibility criteria to avail home loan under Bank of India Star Pravashi Home Loan

The following members can apply for BOI Star Pravashi Home loan –

  • NRIs with valid Indian passport
  • PIOs (Persons of Indian origin) with overseas passport as well as stable income source
  • PIOs have to authenticate their identity by providing current passport, any previous valid Indian passport, information about their forefathers’ (preferably by providing their valid Indian passport)

Co-borrowing in BOI star Pravashi home loan

Co-borrowing typically occurs when there is a co-owner to the property that is being considered for buying. The co-borrower can be an Indian resident. In such a scenario, the income proof of the co-applicant will be the bank statements of the bank account held in India and income tax returns submitted to tax authorities in India. These aspects will be duly considered to evaluate the credibility of the joint borrowers. However, an Indian resident who is not of Indian origin cannot become a co-borrower in the case of BOI star Pravashi home loan.

Interest rates on Bank of India Star Pravashi Home Loan

The interest rates are slightly higher than the interest rate applicable on home loans extended to resident Indians. The current base rate applicable is 9.7%, the base rate is fixed after considering various macro-economic factors. The maximum tenure allowed on floating interest rate home loans is 30 years. The base rate for loans upto Rs. 75 Lakhs is fixed at 9.95% and for limits above Rs. 75 Lakh is 10.2%.

Mode of creation of security / execution of documents in the case of home loan extended to NRIs under Bank of India Star Pravashi Home loan

If the borrower at the time of application is present in the country, document submission should be done by the primary applicant. If the borrower or the applicant is not in India, then he has to nominate a power of attorney who can undertake this work effectively. The documentation required is the same in both the cases, the only difference being, the signing authority would be the applicant in the first case, in the second, the person to whom the power of attorney is extended would be the signing authority.

Quantum of Loan

The income stability and the repayment ability are the two main criteria for the quantum of loan that can be extended to the individual (borrower) –

Type of applicantQuantum of loan
Salaried employee72 times of average monthly remuneration or six times of the total yearly income based on IT Returns
Self –employed individuals Six times the average income per annum after IT Returns
HUF, Proprietorship, Partnership Company or OrganizationSix times of money accumulations (PAT+ Depreciation) as per Balance Sheet/ P&L Account

Repayment tenure

BOI offers flexi repayment options which can be customized to the needs and repayment ability of the applicant. The maximum tenure for loan repayment is 30 years, this is inclusive of the 3-year moratorium period. The tenure is typically dependent on the number of floors in the case of a township project, this holds good for bank sanctioned projects as well. The maximum age upto which the loan tenure is allowed is 70 years of age in the case of self-employed individuals. For salaried, it is allowed till retirement age which depends on the country of work and company policy.

Repayment options

The repayment options are galore in the case of BOI Star Pravashi Home loan wherein auto-debit facility may be given to the NRE, NRO, FCNR account in India. Any close relative who lives in India can also make the payment of EMI (subject to certain additional contractual norms). Rental income derived from the property can be routed towards the home loan account, thereby making it a means to repay the home loan.

Documents Required for Bank of India Star Pravashi Home Loan

Apart from the usual proof of identity, income and residence, there are specific documents required for each type of applicant. The general documents are categorized under the general documentation head, while the specific documentation for each category of applicant is dealt separately in the tables below –

General documentation
  • Photocopies of Passport with visa stamp
  • Self-attested photocopy of Indian PAN Card
  • Self-attested address Proof in India
  • Contact information of relative in India
  • Overseas address proof (Driving License or any Utility Bill)
  • Credit rating report from relevant source

All these documents have to be submitted along with duly filled application form and photos of applicant.

The specific income proofs for each category are mentioned below –

Type of applicantDocuments required
Salaried applicant
  • Work Permit papers.
  • Complete address of the company employer along with name and contact info of your department head or boss.
  • Employment Contract in the official language of the country along with English translation.
  • Photocopy of your identity card supplied by the present employer, accordingly attested by the employer (or HR Department).
  • Photocopy of Continuous Discharge Certificate (CDC) for loan applicants working in Merchant Navy.
  • Complete details regarding your past occupational records, all 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
  • Most recent salary slips in original (of the last three months or more).
  • Yearly Income Tax Return, filed according to the guidelines applicable in the country where you reside for the past two years.
Self-employed / Professionals / Others
  • Affiliation of a professional organization.
  • Government or local body authorization or license to occupy in any business activity
  • To be verified by employer (if he/ she is a Bank, MNC or Central/ State Government Body employer). Else it has to be verified by any of the Bank of India Branch Representative or that of the foreign embassy.

Fees and charges applicable for BOI Star Pravashi Home loan

Salaried employee / self-employed indivdual
  • 0.25% of the home loan amount.
  • Minimum is INR 1000
  • Maximum is INR 20,000 plus GST
Partnership Organizations & Corporate Debt
  • 0.50% of the home loan amount.
  • Minimum is INR 2000
  • Maximum is INR 40,000 plus GST
Applicants from rural areas
  • Processing fees will be 75 percent that of what is applicable to individuals

With BOI Star Pravashi Home loan, it may no longer be a nightmare for the NRIs to own their dream home in India by availing a housing loan.

Bank of India Star Pravashi Home Loan FAQs

1. Who can apply for loan from BOI Star Pravashi Home loan?

NRI with valid Indian passport, PIOs with valid foreign passport who are able to establish their origination in India.

2. How can an NRI carry out the documentation process for home loan if he is not in India?

The NRI has to nominate a person residing in India as the power of attorney to execute the documentation process.

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