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BOI Star Smart Home Loan


Eligible Customer

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 under this category. 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 borrower’s 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.


Borrowers will have to remit Equated monthly installments (EMIs) as in the case of usual home loans.
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 account to 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.   The home loan account can be operated as an overdraft account upto the drawing limit.
iii.  The surplus amount invested could be utilized for his personal /business purpose ;
iv.  The scheme offers liquidity as well as interest relief.
v.   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.

Rate of Interest (ROI)



Cheques book /ATM Charges as applicable as per banks extant guidelines, including Processing Charges

Processing Charges


All other terms and conditions

As per Star Home Loan Scheme / Star Diamond Home Loan Scheme

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