Bank of India Kenya
Currency USD
TT-Buying
106.05
TT-Selling
108.05
Currency GBP
TT-Buying
145.20
TT-Selling
149.30
Currency INR
TT-Buying
1.4120
TT-Selling
1.4510
Currency EURO
TT-Buying
125.60
TT-Selling
129.40
Currency USD/INR
TT-Buying
74.78
TT-Selling
75.75
With effect from 14.09.2016, we have implemented the Central Bank of Kenya guidelines as per circular No.4 of 2016 dated 13.09.2016 and the maximum rate of interest applicable on advances will be four percent over CBR.
Central Bank of Kenya has revised Central Bank Rate (CBR) to 7.00% p.a. with effect from 29th April 2020. Hence, our Rate of Interest on KSH Loans/Advances based on this floating rates will accordingly get revised with effect from 29th April 2020 for existing A/Cs linked to CBR.
The Bank gives hassle free loans for all your requirements at very competitive rates of interest. Loans are instantly given against our Term deposit receipts. We also give loans against deposit with any branch of Bank of India in India or globally subject to regulations of the respective countries.
Pursuant to Government of Kenya Circular No. 15 of 2019 dated 26.11.2019 advising repeal of Interest Rate Cap under section 33B of the Banking Act, Bank of India has introduced the Bank-Base Rate (Risk Based Pricing) for the new loans. The Base Rate presently is 13.00 %.
I) Title of the Scheme -
Our Scheme for Housing Finance is known as “Star Home Loan Scheme”.
II)Purpose of Loan :-
III) Eligible – Borrowers:-
The Scheme is targeted to attract select customers who are –
having any other regular source of income.
IV) Age : Repayment Period for salaried persons as well as others : Up to the age of 70
Years. Age mentioned above is the outer limit i.e the age by which the repayment period should be over. It is not an entry age.
V) Income
a.In case owner of property is male: Wife, parents, sons, daughter-in-law
b.In case owner of property is female: Husband, parents of husband, sons, daughter in law.
VI)Margin:-
Quantum of Loan | Margin* on Home Loan for 1st Home | Margin for 2nd or subsequent house [with our without existing home loans] |
---|---|---|
UptoKsh 25.00 Mn | 20% | 30% |
Over Ksh 25.00 Mn to KES 100.00 Mn | 25% | 35% |
VII) Net Take home Pay/Income (NTH):
In respect of home loan to individuals: Net take home pay/income (Net of EMI of proposed loan) is stipulated as under:-
For Individuals | % |
---|---|
Gross Monthly Income upto Ksh 100,000/- | 40% |
Gross Monthly Income over Ksh 1,00,000/- uptoKsh3.00 Mn | 30% |
Gross Monthly Income over Ksh 3.00 Mn | 25% |
For Firm / Corporate | DSCR- 1.5 |
VIII) Quantum of Loan:(Ksh In Mn)
Purpose | Min.Limit | Max.Limit |
---|---|---|
i. Construction/Purchase of a house/flat – | 5.00 | 100.00 |
ii. For purchase of a plot | 5.00 | 25.00 |
iii. For addition/extn./repair/ renovation of house/flat | 5.00 | 50.00 |
iv. Furnishing of house/flat, Solar PVs [15% of Home Loan]. |
*2.00 |
IX) Calculation of Quantum of Loan :
Calculation of Quantum of Loan is linked to the Income of Proponent/borrower as mentioned below :-
Category | Quantum of Loan |
---|---|
Salaried Employees : | 72 times of gross monthly salary OR 6 times of gross annual income based on Income Tax Returns; |
Self-employed/Professionals Individuals engaged in Trade/ Commerce/ Business : | 6 times of their gross annual income based on Income Tax Returns; |
Prop. FirmPartnership firm/Corporate Borrowers : | 6 times of cash accruals (PAT + Depreciation) as per their audited Balance sheet/P&L A/c. |
X) Repayment*
Sr.No | Particulars | Repayment Period |
---|---|---|
1 | For new Construction / New Purchase from builder | Normal Repayment Period -20 Years including moratorium period upto 24 months. |
2 | For 2nd/3rdPurchase | 20 Years Including moratorium period of 24 months. |
3 | For Repair/Renovation /Addition /Alteration | 10 Years |
XI) Security:
Legal mortgage of the land/flat/house proposed to be financed, guarantee of spouse if he/she is not a co borrower, consent from the spouse for creation of charge over the property .
XII) KYC Norms:- As per CBK guidelines
XIII) Rate of interest:
For Individuals:-
For limits in KSH- Base Rate +0.00%pa
For limits in other currencies- Applicable 3M/6M USD/EURO/GBP Libor+ 6.00%pa
For Others:- Risk Based Pricing
XIV) Processing charges:
One time 1.00%pa
XV) Other costs:- External costs like cost of valuation, legal cost , insurance, stamping
etc. to be incurred by the borrower separately.
*Other terms and conditions apply
1. PURPOSE:
2. TARGET (ELIGIBLE) CUSTOMERS:
People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,)
INELIGIBLE PERSONS :
NBFC, Trusts are not eligible for advances under the scheme.
3. MAXIMUM AGE LIMIT:
Individuals in permanent service and others max. 60 years (age limit is the maximum age at the end of the repayment Period; It means the entire loan is to be liquidated by the above age. It is not an entry age).
4. TYPE OF ADVANCE :
(a) Demand / Term Loan (Repayable by installments);
(b) Overdraft (Reducible limit as per repayment schedule);
(c) Overdraft (Non-Reducible-For other than individuals)
5. QUANTUM OF ADVANCE : (Ksh in Mn)
Business purpose | Other bonafide purposes | |||
---|---|---|---|---|
|
Min. | Max. | Min. | Max. |
Demand Loan / Term Loan |
10 | 100 | 1 | 20 |
Overdraft (Reducible) |
10 | 100 | 1 | 20 |
Overdraft (Non-Reducible) |
10 | 100 | - | - |
6. CALCULATION OF QUANTUM OF ADVANCE
1) | Individual-Salaried/ Self-employed/ Professionals / Traders. | 48 times of average monthly net emoluments (take home salary) based on salary slip OR 4 times of net annual income with other rental income from property etc. based on KRA returns for last 2/3 Financial Years. |
2) | Others i.e. Prop./Partnership firm/Company etc. | For Loans/ Reducible Overdraft : 4 times of average net annual income of last 2/3 years based on IT Returns for last 2/3 Financial Years or 4 times of average cash accruals(Profit after tax + depreciation) for last 2/3 years, as per their Balance Sheet/P&L Account for last 2/3 financial years. For Overdraft( Non reducible) 20% of annual turnover based on last (F.Y)audited balance sheet of the proponent. Balance sheet to be obtained for last 2/3 Years.-based on its number of years existence. |
7. MARGIN (ON VALUE OF PROPERTY) :
The loan limit will be based on valuation of property (Market value, Distress Sale Value, Forced Sale Value) , 60% margin on market value / 50% of distress value or 40% of forced sale value , whichever is lower.
8. REQUIREMENT OF NET TAKE HOME PAY /DSCR- FOR LOANS :
a) For individuals: Net take home pay (net of EMI of proposed advance) is not less than 40% of gross income of the applicant.
b) For Prop. Firm/Partnership Firm/Company(Loan /Reducible OD): DSCR: Min.1.5;
c) For Overdraft facility(Non-reducible ) :ISCR Min.1.5.
9. REPAYMENT :
For loans (Repayable by installments) | Within a period of max. 10 years by way of equated monthly installments (EMIs) (including the moratorium period, if any). The repayment should commence from the month subsequent to the month in which final disbursement is made or 6 months from the date of first disbursement, whichever is earlier. |
Overdraft : (Reducible Limit) | Interest to be serviced on monthly basis, as per sanction terms; Drawing Limit to be reduced on monthly basis as per sanction terms to bring down the balance to zero at the end of repayment period. Total Repayment period of max. 10 years. |
Overdraft: (Non-reducible) | Interest to be serviced on monthly basis, as per sanction terms. |
10. SECURITY :
11. KYC Norms:- As per CBK guidelines
12. Rate of interest:
For Individuals:-
For limits in KSH- Base Rate +0.00%pa
For limits in other currencies-Applicable 3M/6M USD/EURO/GBP Libor+ 6.00%pa
For Others:- Risk Based Pricing
13. Processing charges: One time 1.00%pa
14. Other costs:- External costs like cost of valuation, legal cost , insurance, stamping
etc. to be incurred by the borrower separately.
*Other terms and conditions apply