Will my Bank of India EMI change after the RBI policy on October 7, 2026?

Bank of India home loans are linked to an external benchmark (RBLR), tracking the RBI repo rate. If the RBI changes the repo rate, Bank of India revises its benchmark and your rate resets within the reset window. Most lenders extend your tenure by default rather than change your EMI.

I already have a Bank of India home loan at 8.50%. Should I shift it?

If the gap between your rate and a new offer is at least 0.40% to 0.50%, you have 5+ years left and your balance is above ₹20 lakh, a transfer usually saves money even after fees. Ask Bank of India for a spread reset first. If they refuse, compare offers.

Does Bank of India charge a prepayment or foreclosure fee?

RBI rules do not allow lenders to charge prepayment or foreclosure penalties on floating-rate home loans taken by individuals. Fixed-rate loans and business borrowers can be treated differently, so check your sanction letter.

Does GoVitt charge me anything?

No. GoVitt is free for borrowers. We are paid by partner lenders, and we tell you honestly when a switch is not worth it.

Next RBI policy decision: October 7, 2026. We update all rates the same day.

Bank of India Home Loan Rates · October 2026

Bank of India Home Loan Interest Rate starts at 7.10%*

Bank of India charges between 7.10% and 8.85% depending on your CIBIL score and profile. If you are an existing Bank of India borrower paying 8.00% or more, you may be overpaying. Check in 60 seconds, with no credit score impact.

Rates last updated on October 1, 2026

Source:Bank of India official website ↗

Starting rate

7.10%

No change

Best CIBIL, salaried

Up to

8.85%

Lower CIBIL / higher risk

Processing fee

Nil to 0.25%

Nil to 0.25% (Max ₹20,000) + GST

Max tenure

30 yrs

Max loan: No upper limit

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Bank of India home loan at a glance

Headline terms for a new Bank of India home loan. Your final rate is set after Bank of India assesses your CIBIL score, income, loan amount and property.

Interest rate	7.10% – 8.85% p.a.
Lender type	Public Sector
Rate benchmark	RBLR (Repo Based Lending Rate)
Processing fee	Nil to 0.25% (Max ₹20,000) + GST
Maximum loan amount	No upper limit
Maximum tenure	30 years
Best suited for	High FOIR allowance for self-employed & low repo rates

* Indicative rates based on public lender disclosures. Final rates depend on borrower risk score, property type and LTV ratio.

How your CIBIL score moves your Bank of India rate

750 and above

Qualifies for rates at or near Bank of India's starting rate of 7.10%.

700 – 749

Usually 0.25% to 0.50% above the best rate.

Below 700

Higher spread, and you may need a co-borrower to get approved.

Already paying Bank of India 8.00% or more?

Enter three numbers from your loan statement. We show savings after switching costs, not the inflated gross figure, and tell you honestly if moving is not worth it.

Outstanding amount (₹)

Your current Bank of India rate (%)

Years remaining

Best rate you qualify for (%)

Estimated switching costs (₹): processing, legal, valuation, MODT

💡 Pro Tip: Tip: before switching, ask Bank of India for a spread reset. If they refuse or charge too much, a transfer is your leverage.

Current EMI₹45,273

New EMI₹41,068

Monthly saving₹4,205

Total interest saved₹9,08,313

Minus switching costs– ₹37,500

Worth exploring

₹8,70,813

Net saving over your remaining tenure, after estimated switching costs.

See my real payoff date →

Bank of India home loan EMI for ₹30 lakh to ₹75 lakh

Monthly EMI on a 20-year loan at Bank of India's starting rate, and at 1% higher. That 1% is roughly what a weaker CIBIL score or an old spread costs you.

Loan amount	EMI @ 7.10%	EMI @ 8.10%	Extra you pay / month
₹30 lakh	₹23,439	₹25,280	+₹1,841
₹40 lakh	₹31,253	₹33,707	+₹2,454
₹50 lakh	₹39,066	₹42,134	+₹3,068
₹75 lakh	₹58,598	₹63,201	+₹4,603

Tenure 20 years. EMIs rounded to the nearest rupee.Try other amounts in the EMI calculator →

How Bank of India decides your rate

Bank of India is a public sector bank, so every new floating-rate home loan is linked to an external benchmark (RBLR), which tracks the RBI repo rate.

Your Bank of India rate = repo-linked benchmark (RBI repo + bank spread) + your risk premium

Repo moves, your rate follows

The RBI repo rate is at 5.25% and the next policy decision is on October 7, 2026. If it changes, Bank of India revises its repo-linked rate and your loan resets within the reset window.

Your spread does not move

The spread set on day one usually stays for the full tenure, even if your CIBIL score improves. That is why older Bank of India borrowers often pay more than new ones.

Lenders stretch tenure, not EMI

When rates go up, most lenders keep your EMI the same and add months to the loan. Your statement may not show the real payoff date.

When a switch makes sense

Rate gap of 0.40% or more, 5+ years left, and a balance above ₹20 lakh. Below that, switching costs can eat the savings.

Bank of India vs lenders with similar rates

The lowest starting rate is not always the lowest rate for your profile. Compare before you sign or switch.

Lender	Interest rate (p.a.)	Processing fee
State Bank of India	7.10% – 8.70%	0.35% (Min ₹2,000 to Max ₹10,000) + GST
Bank of IndiaFeatured	7.10% – 8.85%	Nil to 0.25% (Max ₹20,000) + GST
Indian Overseas Bank	7.10% – 8.95%	0.50% (Max ₹25,000) + GST
Bank of Maharashtra	7.10% – 10.80%	Nil Processing Fee
Central Bank of India	7.10% – 10.00%	Nil Processing Fee
Bank of Baroda	7.20% – 10.60%	Nil to 0.50% (Max ₹10,000) + GST

Compare all 50+ lenders →

Bank of India home loan FAQs

Bank of India home loan rates currently range from 7.10% – 8.85% p.a. The rate you get depends mainly on your CIBIL score, income profile, loan amount and the property.