PSULast verified: 27 Feb 2026
Bank of India Home Loan Prepayment Rules (2026)
Check current prepayment penalty rules, part-payment limits, notice expectations, and process format for Bank of India home loans.
Quick Rules Card
| Penalty on Floating Rate | No - No floating-rate prepayment charge for individual borrowers. |
| Penalty on Fixed Rate | Conditional - Fixed-rate charges may be applicable based on contract. |
| Max Part-Payment / Year | Policy varies by product/scheme |
| Notice Period | Advance request may be requested for account closure |
| Payment Format | BOI Mobile / branch service form |
RBI Context (2014 Circular)
RBI circular DBOD.No.Dir.BC.107/13.03.00/2013-14 (2014) disallows foreclosure/prepayment charges on floating-rate term loans to individual borrowers.
Prepayment Examples
- A ₹75,000 quarterly part-payment strategy can materially lower tenure.
- Prepayments in first 7 years usually generate the highest interest savings.
Source Citation
Bank of India Home Loan - TermsFrequently Asked Questions
Is Bank of India home loan prepayment penalty-free on floating rate?
No floating-rate prepayment charge for individual borrowers.
What is the part-payment limit for Bank of India home loan?
Current published guidance: Policy varies by product/scheme. Always confirm your sanction letter before making a large prepayment.
How can I submit a prepayment request for Bank of India?
Typical process: BOI Mobile / branch service form. For closure requests, banks may ask for additional authorization and NOC workflows.
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