The Star Home Loan is a cost-effective and adaptable home financing option provided by the Bank of India. It allows potential homeowners to repay their loans over a maximum of 360 months. The interest rates are competitive, beginning at 8.65%. The loan can cover up to 90% of the property’s value. The standard home loan interest rate for those with a credit score below 600 starts at 8.50%.
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Certain applicants are eligible for special rates. Women can avail of rates from 9.35% to 10.30% annually. For senior citizens, the rates start at 9.35% per year. Non-resident Indians (NRIs) also have rates starting from 9.35% per year. It’s worth noting that most lenders for home loan approval typically prefer a credit score of 750 or higher. Besides this, it is important to have an idea about the documents, features, benefits, and eligibility of the loan. This is where this article can help you. This article will cover everything you need about this Bank of India loan scheme.
Star Home Loan Interest Rates for Women and Benefits
Star Home Loan provides appealing home loan rates and advantages for women. Women who borrow can get a discount of 0.50% on interest. The Bank of India housing loan interest rate for female borrowers begins at 8.95% and can rise to 9.85% based on their credit score and the loan amount. It also offers several benefits for women, such as:
- Low-interest rate
- No hidden charges
- No prepayment penalty
- Free insurance coverage
- Lower stamp duty
- Tax deductions
Below is a detailed table showing the CIBIL score along with their interest rates:
| CIBIL Score | Interest Rate for Salaried | Interest Rate for Self-Employed |
| 760 and above | 9.35% | 9.35% |
| 725 to 759 | 9.50% | 9.60% |
| 675 and 724 | 9.70% | 10.30% |
| below 675 | 9.75% | 10.30% |
| – 1 and 0 | 9.60% | 9.70% |
Star Home Loan Interest Rates for Self-Employed and Benefits
Star Home Loan offers competitive interest rates for self-employed individuals, making homeownership more accessible. It also offers several benefits for self-employed, such as:
- Furnishing loan
- Balance transfer
- Top Up Loan
- Solar PV
- Insurance premium
- Step up/Down EMI
Below is a detailed table showing how the CIBIL score might influence these interest rates:
Floating Category – Up to 30 Years
| CIBIL Score | Interest Rate |
| 825 and above | 8.30% |
| 800 to 824 | 8.40% |
| 760 and 799 | 8.60% |
| 725 and 759 | 8.70% |
| 675 and 724 | 9.10% |
| below 675 | 10.70% |
| -1 and 0 | 8.90% |
Others
| CIBIL Score | Interest Rate |
| 760 and above | 9.35% |
| 725 to 759 | 9.65% |
| 675 and 724 | 10.35% |
| below 675 | 10.40% |
| – 1 and 0 | 9.75% |
Star Home Loan Interest Rates for Salaried and Benefits
Star Home Loans presents salaried individuals with favourable interest rates that make owning a home more attainable. The interest rates are structured to give financial adaptability and advantageous provisions. Star Home Loans also extends several advantages to salaried employees, including:
- Maximum tenure
- Moratorium period
- Low EMI
- OD facility
- Addition/extension
- Furnishing loan
Below is a detailed table showing how the CIBIL score might influence these interest rates:
Read: Exploring Bank Rate and Repo Rate in 2024
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Floating Category – Up to 30 Years
| CIBIL Score | Interest Rate |
| 825 and above | 8.30% |
| 800 to 824 | 8.40% |
| 760 and 799 | 8.60% |
| 725 and 759 | 8.70% |
| 675 and 724 | 9.10% |
| below 675 | 10.55% |
| -1 and 0 | 8.90% |
Other
| CIBIL Score | Interest Rate |
| 760 and above | 9.35% |
| 725 to 759 | 9.55% |
| 675 and 724 | 9.75% |
| below 675 | 9.80% |
| – 1 and 0 | 9.65% |
Feature and Benefits of Star Home Loan
Star Home Loan is a comprehensive financial solution to help you achieve your dream home. It offers attractive features and benefits tailored to meet your specific needs. They are:
Features
1. Adaptable Loan Duration
You have up to 30 years to repay your loan with Star Home Loan. This extended payback time facilitates budgetary management of your monthly payments.
2. Reasonably Priced Interest Rates
Your monthly instalments are kept reasonable by our attractive interest rates, allowing you to concentrate on making your property a home.
3. Highest Allowable Loan Amount
If you meet the requirements, our large maximum loan amounts provide you the freedom to finance your ideal house.
4. Option for Balance Transfer
Star Home Loan provides a balance transfer option to relieve the burden of an existing home loan with a high interest rate.
5. Top-Up Loan Function
You can obtain additional cash over your existing loan amount using our top-up loan tool to pay for significant purchases or costs.
6. Rapid Loan Processing
We streamline and expedite the loan application process so you may get funding quickly and begin designing the home of your dreams.
Benefits
1. Tax Benefits
The Income Tax Act allows you to claim tax advantages on the principal and interest portions of your home loan. This may lower the amount of taxes you owe.
Read: Central Bank of India Home Loan Interest Rates – Updated in July 2024
2. Enhanced Eligibility
Your eligibility may be increased, and you may be able to receive a larger loan amount if you include a co-applicant with your home loan application. It is simpler to be authorised if you have a joint application.
3. Doorstep Service
For the ease of finishing the requirements associated with your home loan application, Star Home Loan provides doorstep assistance. Their representatives will visit your home or place of business to gather paperwork and offer assistance.
4. Transparent Processing
With Star Home Loan, you can anticipate total processing transparency and no additional costs. Everything is told to you upfront and in detail.
5. Online Access
Managing your Star Home Loan account is easy with online access. You can check loan details, make payments, update information and more with just a few clicks. Their online portal offers convenience.
How to Apply for a Star Home Loan?
Applying for a Star Home Loan is a straightforward process. Below are the steps:
Step 1: Initial Inquiry
Send a text message with the words ‘Star Home Loan’ to 8467894404 or make a missed call to 80109683701 to express your interest in the Star Home Loan from the Bank of India (BOI). Understand the requirements for the loan.
Step 2: Prepare Documents
Gather all necessary documents. These typically include proof of identity, proof of address, proof of income, and documents related to the property.
Step 3: Submit Application
Submit your application and the documents to BOI. This can be done at the BOI branch nearest to you. If you’ve already chosen a property, provide its details in the form and submit copies of the property-related documents for legal and technical evaluation.
Step 4: Approval of Loan
Once BOI reviews and approves your application, they will provide you with the loan amount based on your eligibility and requirements.
Read: LIC Home Loan Interest Rate – Updated in July 2024
Step 5: Pay Back Loan
Repay your loan in monthly instalments over the agreed-upon period. The maximum repayment period for a Star Home Loan is 360 months.
Star Home Loan Eligibility
BOI home loan eligibility is as follows:
Nationality
Open to Resident Indians, NRIs, and PIOs.
Job Profile
Available to individuals (salaried/self-employed/professionals) and non-individuals (HUF, Corporations, Groups/Association of Individuals). Trusts are not eligible.
Age
Applicants should be between 18 and 70 years old.
Document Required of Star Home Loan
To apply for a Star Home Loan, you need certain necessary documents. The Bank of India home loan documents list is as follows:
For Individuals
1. Proof of Identity (Any One)
- The passport
- PAN
- Driver’s License
- Voter Identity
2. Proof of Address (Any One)
- Recent electricity bill
- Recent phone bill
- Passport
- Driver’s Licence
- Aadhar Card
- A recent bill for piped gas
3. Proof of Income (Any One)
- For salaried: Latest 6 Month Salary/Pay Slip and One-year ITR/Form16
- For Self-employed: Last 3 years ITR with Computation of Income/Profit & Loss Account/Balance Sheet/Capital Account Statement
For Other Than Individuals
- KYC of Partners/Directors
- PAN Card copy of Company/Firm
- Registered Partnership Deed/MOA/AOA
- Certificate of Incorporation as applicable
- Account Statement for the Last 12 Months
- Firm’s Audited Financials for the Last 3 Years
Star Home Loan Comparison With Other Banks
Below is a comparison of the BOI housing loan interest rate with other top banks’ interest rates:
| SNo. | Bank/ NBFC Name | Interest Rate |
| 1 | Axis Bank | 9.00% – 14.00% |
| 2 | Aditya Birla Capital | 9% – 12.50% |
| 3 | Bandhan Bank | 8.65% – 13.65% |
| 4 | Bank of Baroda | 8.50% – 10.60% |
| 5 | Bank of India | 8.30% – 10.75% |
| 6 | Bank of Maharashtra | 8.40% – 10.80% |
| 7 | Canara Bank | 8.85%- 11.25% |
| 8 | Central Bank of India | 8.45% – 9.20% |
| 9 | Citibank | 8.45%-14% |
| 10 | Corporation Bank | 8.60% – 11.20% |
| 11 | Dena Bank | 8.40% Onwards |
| 12 | Federal Bank | 10.15% – 10.30% |
| 13 | Fullerton Bank | 9.50% Onwards |
| 14 | HDFC Bank | 8.95% – 9.85% |
| 15 | HSBC | 8.60% Onwards |
| 16 | ICICI Bank | 9.00% – 10.05% |
| 17 | IDBI Bank | 8.75% – 11.45% |
| 18 | IDFC First Bank | 8.85% Onwards |
| 19 | Indian Overseas Bank | 9.55% Onwards |
| 20 | Indiabulls Housing Finance | 8.75% Onwards |
Star Home Loan EMI Calculator – How to Calculate Star Home Loan EMI?
The formula to calculate EMI is:
EMI = (1+R)N−1P×R×(1+R)N
where:
- P is the principal loan amount,
- N is the loan tenure in months, and
- R is the monthly interest rate
Let’s calculate the EMI for a loan of ₹10,00,000 at an annual Bank of India star home loan rate of interest of 8.30% for a tenure of 120 months (10 years).
First, calculate the monthly interest rate R:
R = 8.30 / 12*100 = 0.00691667
Then, we substitute P, R, and N into the EMI formula:
EMI = [10,00,000 × 0.00691667 × (1+0.00691667)^120] / [(1+0.0.00691667)^120-1]
The total amount payable will be ₹12,313 * 120 = ₹14,77,560. The principal loan amount is ₹10,00,000, and the interest amount will be ₹4,77,560.
Factors That Affect the Star Home Loan Interest Rate
The Star Home Loan rate is set based on components that determine how affordable it is. These key factors include:
1. Loan-to-Value Ratio
Here, the worth of the property is contrasted with the loan amount. Increased interest rates are possible with larger loans.
2. Credit Score
Your financial behaviours are displayed as a grade on your credit report. A high score might increase your chances of getting a better interest rate.
3. Income and Occupation
A few things that affect your interest rate are your employment status and income.
4. Location and Property’s Value
The loan amount is determined after considering the property’s age, location, and market value.
Tips to Avail Star Home Loan at Lower Interest
Securing a home loan at a lower interest rate can save you a significant amount of money over the life of the loan. Here are some tips to help you avail a Star Home Loan at a lower interest rate:
1. Good Credit Score
Lenders frequently view a good credit score as an indicator of creditworthiness. It may improve your chances of getting approved for a loan with a cheaper interest rate. Make sure your credit history is intact by making on-time loan and bill payments.
2. Stable Income
Stable income debtors are preferred by lenders. You may be able to negotiate a lower interest rate if you have a reliable source of income or stable employment.
3. Loan Tenure
Lower interest rates are typically associated with shorter loan terms. Choose a term that you are happy with, though, as this entails larger monthly payments.
4. Negotiation
Never be afraid to negotiate with the lender. Assume that your credit profile and relationship with the bank are solid. You might be able to negotiate a reduced interest rate in that situation.
Star Home Loan is dedicated to providing house loans that are suited to your particular financial circumstances. With their loans, you may become a homeowner on your terms, thanks to their flexible terms and competitive interest rates.
Moreover, if you want to save yourself from the headache of massive documentation and have a smooth application process, then take the help of NoBroker. We can assist you from the start to the end until you get your home.
Frequently Asked Questions
1. What is the interest rate of a Star home loan?
The Star Home Loan from the Bank of India has an interest rate starting from 8.45% per annum. This rate can change based on your credit score and other factors.
2. What is the complete form of EMI?
EMI stands for Equated Monthly Instalment.
3. How much home loan can I get if my salary is 40000?
If your salary is ₹. 40,000, you can get a home loan of around ₹ 33,36,525.
4. How much home loan can I get if my salary is 60000?
If your salary is ₹. 60,000, you can get a home loan of around ₹ 36,00,000.
5. How many times can one person take a home loan?
No specific limit exists on how often a person can take a home loan. It primarily depends on the person’s repayment capacity, credit score, and other eligibility criteria the lender sets.
