BANK OF INDIA- MORTGAGE LOAN

STAR MORTGAGE LOAN

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.


Purpose :

a.To meet the credit needs of trade, commercial activity, other general business, Profession as also for their bona fide 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 pilgrimage/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 net worth, 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 [national 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: @ BPLR, at present 12.75% p.a. at monthly rests. 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 installments :-
- One time @ 1% of Loan amount. Min.Rs.1500/- and max. Rs30000/-.

2. Overdraft Limit ( not reducible as per repayment schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.750/- and Max. Rs.7000/- on annual basis.
- Documents charges, advocate fee, architect fee etc. on actual basis.

Loan agreement copy charges : As applicable

Equitable Mortgage Fee General :

i. Limits exceeding Rs.25 lacs up to Rs.50 lacs - Rs.5,750/-
ii. Limits exceeding Rs.50 lacs - Rs.11,500/-

SSI :

BANK OF INDIA i. Limits exceeding Rs.25 lacs up to Rs.50 lacs - Rs.3,000/-
ii. Limits exceeding Rs.50 lacs - Rs.6,000/-
Loan at the sole discretion of the Bank of India. For more information, you may contact nearest branch of the Bank.

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