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  Star Mortgage Loan Scheme


This scheme provides loan/overdraft facility against mortgage of property at low rate of interest. The scheme is for people engaged in trade, commerce & business and also professionals & self employed, Prop. Firm, partnership firm, companies, NRIs and individuals with high net worth including salaried people, agriculturists and staff members. The product provides an opportunity to customers to borrow against a fixed asset (mortgage of property) at a short notice without much paper work/attendant hassles.

Product
                 BOI Star Mortgage Loan Scheme
Purpose  
a. To meet the credit needs of trade, commercial activity, other general business, Profession as also for their bonafide requirements.
b. To meet marriage or medical or educational expenses of family members including near relatives.
c. To undertake repairs/renovation/extension to the residence/commercial property.
d. Purchase of consumer durables.
e. To purchase/construct house/flat, purchase of plot.
f. To purchase 2/4 wheeler vehicles.
g. For going on pilgramage/tours/excursions, etc.
h. Repayment of existing loans from other Banks/FIs.
Target customers (Eligibility)
People engaged in trade, commerce and business, Professionals, Self-employed, Prop. Firms, partnership firms, HUFs (excluding NBFC, Trade, partnership firms where HUF is a partner), companies, NRIs, individuals with high networth, salaried people, agriculturists, staff members.
Type of advance
Demand/Term Loan/Overdraft (reducible as per repayment schedule).
Overdraft facility (not reducible as per repayment schedule) can also be permitted to eligible customers (other than salaried people).
Quantum of advance
(Rs. in lacs)
  Min. Max.
a. For agriculturists  0.50  2.00
b. For Others :    
Individuals/Prop. Firm/ 1.00 50.00
Partnership firm/    
Company  :    
Prop./Partnership 1.00 100.00
firm/company 1.00 100.00
Calculation of quantum of advance
The sanctioned limit is to be related to the value of security & repayment capacity of borrower, subject to :
i. Salaried employees :
  • 48 times of monthly net emoluments (take home salary).
    OR
  • 4 times of net annual income with other rental income from property etc. based on Income-tax returns ( Average of Last 2/3 years).

ii. Self-employed/professionals/ individuals engaged in trade/ commerce/ business- 4 times of their net annual income based on income-tax returns ( Average of Last 2/3 years).
iii. Proprietorship/Partnership Firm/Company - Four times of Cash-accruals (i.e. PAT+ Depreciation) as per their Audited Balance Sheet/ P & L Account ( Average of Last 2/3 years).
Note:
1. For individuals :
While fixing the limit , it is to be ensured that the net take home pay (net of EMI [notional EMI in case of non reducible OD] of proposed advance ) is not less than 30% of gross income of the applicant. For Prop. Firm/Partnership firm/Company: DSCR : Min. 1.5
2. Limit prescribed would be subject to a Maximum of 70% in case of salaried employees(50% in other cases) of value of property or eligibility level, whichever is lower.

Margin
Salaried Employees          30% *
Others                              50% *
*On value of property [Lower of Market Value /Distress Sale value/Registration Value as on date of valuation] assessed by Bank's approved valuer.
Rate of Interest
w.e.f. 06.11.2008

Upto Rs,50 lacs 0.25% below BPLR – 13.00%Above Rs.50 lacs @ BPLR – 13.25% Interest concession for woman beneficiaries 0.25% p.a.[All borrowers to be women]

Repayment
In accounts where regular Overdraft facility is not proposed. :-
Within a period of eight years by way of EMIs. The repayment shall commence from the month subsequent to the month in which final disbursement is made or 6 months from the first disbursement, Whichever is earlier. In case of agriculturists : The repayment will be related to the generation of farm income from crops and other subsidiary activities.
Security
Equitable/Legal Mortgage charge over property in the name of applicant or his/her spouse or parents or third party. The person in whose name the property to be mortgaged stands should either be a borrower/co-borrower or a guarantor.
Note :
a. The property offered should be a residential or commercial building or a plot of land (residential/commercial).
b. The property should be self occupied or leased out to acceptable individuals, government agencies, PSUs, Corporates, etc.
c. Agricultural land is NOT accepted as security for this facility .
Processing Fees
1. Accounts repayable as per Stipulated instalments :-
- One time @ 1% of Loan amount. Min.Rs.3000/- and max.     Rs30000/-.
2. Overdraft Limit ( not reducible as per repayment schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.3,000/- and Max. Rs.10,000/- on annual basis.
- Documents charges, advocate fee, architect fee etc. on actual basis.
Loan agreement copy charges : As applicable
For Partnership firms/Corporates –
Processing charges will be double that of applicable to individuals
For Rural areas –Processing charges will be 50% that of applicable to individuals in respect of loans availed by borrowers from rural areas from the Rural Branches. 
 
Equitable Mortgage Fee
General :
i. Limits exceeding Rs.25 lacs upto Rs.50 lacs - Rs.6,000/-
ii. Limits exceeding Rs.50 lacs – Rs.100 lacs - Rs.15,000/-
SME :
i. Limits exceeding Rs.25 lacs upto Rs.50 lacs - Rs.3,500/-
ii. Limits exceeding Rs.50 lacs – Rs.100 lacs Rs.7,000/-

Charges for deviation from scheme norms

For every item of deviation from the scheme norms –
One time 25% of the applicable processing charges min.Rs.3,000/-; max. Rs.10,000/- per a/c.

Loan at the sole discretion of the Bank of India.

For more information, you may contact nearest branch of the Bank.
Announcement

Customers are requested to get their records updated in all existing accounts as per KYC.
 
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Star Home Loan SPECIAL package
 
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Helpdesk/MSME Care Centre has been set up at all the 48 Zonal Offices for extending all possible assistances to MSME borrowers
 
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Deposits per depositor are insured to the extent of Rs. 1 lakh
 
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The Bank has been ranked as 1st by size and growth, 1st by sustainability and risk, by Businessworld issue 24 November 2008
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BANK OF INDIA WINS THE BEST BANK(PSB) AWARD AT THE NDTV BUSINESS LEADERSHIP AWARD 2008.
 
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Reporting information on parameters of recommendations of Sanchar Committee pertaining to Department of Financial Services for the quarter ending september 2008
 
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BANK OF INDIA OPERATING WITH EFFICIENCY
(Business Line 29.09.2008)
 
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Customers also get the facility of SMS alert on all ATM Financial transactions after enrolling their Mobile Number with the Bank.
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can use ATMs of more than 40 banks in India as Bank has joined the National Financial Switch on 04/09/2008.
 
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Direct/Indirect Taxes in minutes...
 
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Shri T S Narayanasami
Chairman and Managing Director Bank of India has also taken over as Chairman of Indian Banks Association
 
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GLOBAL INVESTORS Introduced
 
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Free Life Personal Accident
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first major public sector bank to receiveISO27001:2005 certification for its Data Centre and Disaster Recovery center"
 
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GOLD COINS IN
4, 5, 8, 10, 20 AND 50 GM SIZES, HALL MARKED WITH ASSURED PURITY ON SALE THROUGH OUR BRANCHES
 
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Value addition to our
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our esteemed users to change their Internet banking password on regular basis
 
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