Andhra Bank Home Loans

Table of Contents

• Features of Andhra Bank Home Loan
• Andhra Bank Home Loan Interest Rates
• Eligibility Criteria for Andhra Bank Home Loan
• Andhra Bank Home Loan Schemes
• Andhra Bank Home Loan Types
• Andhra Bank Home Loan for HNIs
• Andhra Bank Home Loan for NRIs
• Document Checklist for Andhra Bank Home Loan

 

Introduction

Andhra Bank was established in the year 1923. It is one among the well – known public sector banks in India. With its headquarters in Hyderabad, and Telangana, the bank operated in 25 states with 2885 branches. Around 90.85 % of the bank’s shares are owned by the Government of India.

 

Features of Andhra Bank Home Loan

• Home loans from Andhra Bank can be availed by both the salaried as well as the self – employed.
• The bank offers special rates for women borrowers.
• Loans are granted to applicants with age ranging from 21 to 65.
• The bank offers around 90 % of the property’s value as home loan.
• The interest rate starts from 8.45 % to 8.60 %
• The minimum EMI costed by the bank is Rs. 765 for each lakh.
• The home loan can also be taken for repair and renovation of the house. The amount of loan offered is 10 lakhs if the house is less than 5 years of age and 15 lakhs if the house is more than 5 years and less than 25 years of age.
• The maximum payout tenure of the home loan is 30 years.
• The minimum margin is 10 % for loan amounts upto INR 30 lakhs For loan amounts more than INR 30 Lakhs – INR 75 lakhs the minimum margin is 20%. For amount over INR 75 lakhs, the minimum margin is 25 %.

Andhra Bank Home Loan Interest Rates

The interest rates are as of 2019

Andhra Bank gives you home loans to buy a house. This is usually 80 – 90 % of the value of the property. The bank will charge an interest to you on the home loan amount and the borrower pays the principal along with the interest amount.

Housing loans are a huge amount and thus the EMI charged each month from you will also be a high amount. You can make use of the EMI calculator on the Andhra Bank housing website to understand what EMI amount you will be paying towards your home loan.

It is important that you have good credit score to be able to get a home loan from Andhra Bank. In addition, a good credit score can also give you some good discounts. The credit score basically denotes how punctually you have been paying off your loans or your credit card bill. This helps the bank to screen its applicants. If your credit score is very low then there are changes for the bank to reject your home loan application.

 

Home Loan Interest Rates and Margin

Loan Amount	Loan – To – Value Ratio	Margin (Minimum)	Interest Rate – Others	Rate for Female Borrowers
Upto Rs. 30 Lakh	90 %	10 %	1 year MCLR + .10 %	1 year MCLR + .05 %
Rs. 30 Lakh – 75 Lakh	80 %	20 %	1 year MCLR + .10 %	1 year MCLR + .05 %
Rs. 75 Lakh	75 %	25 %	1 year MCLR + .20 %	1 year MCLR + .15 %
For renovation and repairs	75 %	25 %	1 year MCLR + 1. 20 %	1 year MCLR + 1. 20 %

 

Interest rate charged on the Andhra Bank housing loan is dependent on the following factors:

• The amount of loan: The rate of the housing loan is dependent on the amount of loan that the borrower applies for. If loan amount is high then the interest rate will be less and vice versa.
• The borrower’s salary: Your income plays a crucial part in deciding the housing loan rate. If the borrower’s income is high then the interest rate will be less and vice versa.
• Type of loan: Different loan plans will offer a different interest rate to the borrower and women borrowers get specialized rates. The interest rate is also dependent on whether you opt for the fixed or the floating interest rate. Depending on the loan product the interest rate could be either high or low.
• Existing bank customer: If you are already a savings account holder with Andhra Bank then the bank may offer you a lesser interest rate. This is in view of your past relationship with the bank.

Eligibility Criteria for Andhra Bank Home Loan

You need to be able to meet these eligibility criteria to get a home loan from Andhra Bank.

Age requirements	Age 21 to 65 years
Age of flat for repair	For repairs and renovation: 1. Up to 5 years of age of the property – Max loan Rs.10.00 lacs 2. Above 5 years and upto 25 years – Max loan Rs.15.00 lacs
Maximum age on due date of loan	not more than 75 years

 

• The Andhra Bank provides repayment period to a maximum of 30 years. The loan can be owned either by a single applicant or jointly by family members.
• The loan eligibility is based on the customer’s repayment capacity.
• For the purchase of a plot the plot has to be situated in residential areas within the municipal corporation limits in the semi urban, urban, and metro areas.
• The customer’s finance will also be taken into consideration before he takes the housing loan.
• The processing is hassle free and the bank offers its loans to a wide section of the population. However the client has to meet some of the mandatory needs.
• The bank loan can be taken by salaried applicants who can take it alone or with a family member.
• The plan can also be taken by the businessmen, agriculturist and self – employed who have a regular income flow.
• Those who stay in Dubai, Sharjah or UAE (United Arab Emirates) can also take home loan from Andhra bank either jointly or individually
• It is important that the applicant’s age criteria is met. The loan can be offered till the applicant attains 75 year of age.
• The property should not be more than 25 years of age in the case of a house and 20 years in the case of a flat.
• The loan can be taken by resident Indian as well as Non – Residential Indians clients alone or as a joint applicant.
• Those NRIs who have served at least one year of service abroad can take the home loan from Andhra Bank.

Andhra Bank Home Loan Schemes

Andhra Bank provides home loans of different kinds to its clients.

The bank also offers a high financing margin which is the major highlight of the Andhra Bank housing loan financing schemes. The loan can be taken by the salaried as well as self – employed professionals. You can avail the loan individually or with a joint applicant.

 

Home Loan Schemes by Andhra Bank	Interest rate per annum
Andhra Bank Housing Loans for General	Starts from 1 – Year MCLR + 0.05 % p.a.
Andhra Bank Housing Loan for NRI	Starts from 1 – Year MCLR + 0.05 % p.a.

 

Housing Loans – General

Under this loan scheme the bank offers:

• Financing of upto 90 % which is the percentage of the total property cost.
• Maximum loan tenure on this kind of loan schemes is of 30 years.
• Loan is available for renovation and repair.
• Competitive interest rates.

 

Andhra Bank Housing Loan for NRI

• The loan has a Joint application available.
• Maximum loan tenure for this kind of loan is 30 years.
• Maximum financing on this loan available is 90 % of the total property cost.
• A 30 months gestation period is applicable on this loan scheme.
• Has competitive rates for women borrowers.

Andhra Bank Home Loan Types

The home loans by Andhra Bank are tailor made by the lender based on the borrower’s needs. The borrower thus gets the upper hand to make a smart home loan plan based on his requirements.

The home loans come in 2 variants as stated below:

• Home loans for NRIs
• Regular home loans.

One can use the loan for various purposes like:

• It can be used for the purchase and construction of a flat or a house.
• It can be used to purchase a residential plot where the borrower can build a house.
• It can be used to renovate or repair an already existing house.

 

1. Home Loan For Purchase or Construction of a New Flat

Home Loan by Andhra Bank
Age group	21 to 60 yrs
Repayment term – Maximum	30 years or the retirement date

 

• This home loan plan is offered to salaried applicants who either have or do not have pension. This can be owned by a single applicant or jointly.
• The loan can be taken by those into agriculture, self – employed and businessmen who have a regular income flow from the business, industry or rents.
• The loan has to be paid in monthly EMIs.
• Repayments are offered at a maximum rate in case the loan is being borrowed jointly.
• Benefits of the term of the loan is that it will terminate during the superannuation age.
• The minimum margin is 10 % for loan amounts upto INR 30 lakhs For loan amounts more than INR 30 Lakhs – INR 75 lakhs the minimum margin is 20%. For amount over INR 75 lakhs, the minimum margin is 25 %.
• In the case of loan being taken jointly repayments are calculated in consolidated basis.
• If the home loan is being taken on a floating interest rate then the prepayment charges are nil.
• The fee for processing of the loan is Rs 10000 or 0.50 %.
• An administrative cost is charged on a quarterly basis that is INR.100 for amount upto INR10 lakhs and INR 150 or – for loan amounts above INR 10 lakhs – INR 15 lakhs. Rs. 250 is the administrative charge for loan amounts above INR 15 lakhs.

 

2. Home Loan to Purchase a Plot

Home Loan by Andhra Bank
Age group	21 years to 60 years
Repayment term – Maximum	30 yrs or till date of retirement

 

• The plot has to be situated in a residential area within the corporation and municipal limits in the metro or urban area.
• The plot loan can also be availed if the plot is sold by an agency that is state owned. This could be the housing boards in metro and urban areas.
• The loan is available for the salaried applicants who either have or do not have pension that is either owned by a single applicant or jointly.
• The time allotted for construction is a maximum of 12 months. If there is non – adherence then this leads to declassification of the housing loan and the commercial interest rate will be charged.
• The loan can be taken by those into agriculture, self – employed and businessmen who have a regular income flow from the business, industry or rents.
• The loan has to be paid in monthly EMIs.
• Repayments are offered at the maximum in case the loan is being borrowed jointly.
• Benefits of the term of the loan is that it will terminate during the superannuation age.
• The minimum margin is 10 % for loan amounts upto INR 30 lakhs For loan amounts more than INR 30 Lakhs – INR 75 lakhs the minimum margin is 20%. For amount over INR 75 lakhs, the minimum margin is 25 %.
• In the case of loan being taken jointly repayments are calculated in consolidated basis.
• If the home loan is being taken on a floating interest rate then the prepayment charges are nil.
• The processing fee of the loan is Rs 10000 or 0.50 % of the total loan amount.
• An administrative cost is charged on a quarterly basis that is INR.100 for amount upto INR10 lakhs and INR 150 or – for loan amounts above INR 10 lakhs – INR 15 lakhs. Rs. 250 is the administrative charge for loan amounts above INR 15 lakhs.

 

3. Home Loan For Renovation and Repair

Home Loan by Andhra Bank
Age group	21 years to 60 years
repayment term – Maximum	30 years or the date of retirement whichever is earlier
Maximum amount of loan for a property that is 5 years old	INR. 10 lakhs
Maximum amount of loan for a property that is above 5 yrs and upto 25 yrs	INR. 15 lakhs

 

• This home loan plan is offered to salaried applicants who either have or do not have pension. It can be owned by a single applicant or jointly.
• The loan can be taken by those into agriculture, self – employed and businessmen who have a regular income flow from the business, industry or rents.
• The loan has to be paid as monthly EMIs.
• Repayments are offered at the maximum in case the loan is being borrowed jointly.
• In the case of salaried applicants the loan can be availed by those without a pension.
• The term of the loan will terminate during the superannuation age.
• The minimum margin is 10 % for loan amounts upto INR 30 lakhs For loan amounts more than INR 30 Lakhs – INR 75 lakhs the minimum margin is 20%. For amount over INR 75 lakhs, the minimum margin is 25 %.
• In the case of loan being taken jointly the repayments are calculated on consolidated basis
• The fee charged for the processing of the loan is Rs 10000 or 0.50 % of the total loan amount.
• If the home loan is being taken on a floating interest rate then the prepayment charges are nil.
• For a loan amount upto Rs. 10 lakhs is Rs 100. for amounts more than Rs 10 lakhs the charge is Rs 150. In the case of loan value abouve Rs 15 Lakhs the charge will be Rs 250.

Andhra Bank Home Loan for HNIs

Individuals who have incredible wealth fall under the category high net – worth individuals . They are those who have an investment capacity that exceeds 2 crores.

For the HNI clients it gets even more difficult to get loans. One may feel that they may get loans easily or may not need loans at all. However this is not the case. In fact they face even more trouble to get their loans sanctioned.

This is because the lenders may not want to risk such a high amount of money that the HNI may be seeking for. For such individuals, care has been taken by Andhra Bank to offer large scale loans in a safe and transparent way.

The elite get the privilege of high loan amounts and flexible repayment options.

 

Amount of loan that can be taken under this loan scheme

The High Net – Worth individuals can avail loans of a high amount over 5 crores. For details pertaining to the payment structure, the interest rate and the loan tenure one would have to contact the bank manager personally.

Andhra Bank Home Loan for NRIs

Home loan from Andhra Bank is given to the NRI’s who have stayed abroad for at least one year. The NRI can either apply individually or jointly with a family member. The NRI loan can be paid either from the rental income that is received from the property or the NRO account.

The home loan can be paid by a relative of the borrower from an Indian account. For an NRI to avail a home loan from Andhra Bank it is important that the applicant has a passport, Visa, agreement with the present employer and valid work permit. If the power of attorney is issued abroad it must be attested by the Indian high commissioner or the Indian consulate. This then has to be certified in India within 3 months of the property deal execution. If the power of attorney is issued in India has to be locally registered. The loan can be availed to buy a house or a flat and it can also be used to renovate the house.

In case the NRI wants to take a loan to renovate the flat then the amount of loan that will be sanctioned will depend on the properties age. If the property’s age is upto 5 years then the maximum amount of loan that will be given is 2 lakhs. If the age of property is between 5 – 25 yrs then the maximum amount of loan that will be given is INR. 8 lakhs. For renovation and repair, the margin amount is 25 %. 20 years is the maximum term for repayment or retirement.

The loan gets terminated at the superannuation age if the property owner does not get pension. Minimum margin of 10 % for loan amounts upto INR 30 lakhs For loan amounts more than INR 30 Lakhs – INR 75 lakhs minimum of margin is 20%. For amount over INR 75 lakhs, minimum margin is of 25 %.

 

Home Loan by Andhra Bank
Construction of house or flat, the Maximum quantum of the amount of loan	Rs.250.00 lakhs, however, subject to property value and repayment capacity of the borrower.
Property aged up to 5 years	the maximum amount of loan is Rs 2 lakhs
For property aged between 5 to 25 years	the amount of loan sanctioned could be Rs. 8 lakhs
Maximum loan amount for property more than 5 years and upto 25 years	Rs. 15 lakhs
Repayment – Maximum	20 yrs or the date of retirement.

 

Home Loans for NRIs from Dubai

There is also a special scheme of home loan for the Non-Indian residents who stay in Dubai. Those who stay in UAE, DUBAI, and Sharjah can take the loan not only individually but also jointly with a family or close relative. Any investment that happens in India on an immovable property is subjected to the FEMA guidelines. EMI can be paid the form of a remittance or through FCNR, NRE accounts from outside India. EMI can be paid from an NRO account.

For the construction or purchase of a flat an loan amount of Rs.250 lakhs can be availed. However this is based on the borrower’s repayment capacity and the property’s value.

To apply for a home loan from Andhra Bank you need to have a detail idea about the desired loan amount and the type of loan that you wish to opt. You also need to be clear on your eligibility criteria for a home loan from Andhra bank. There are specifications for age, qualification, salary, co-applicants, savings etc.

The loan shall be applied either online or by contacting an agent from Andhra Bank.

The application form for the home loan is available for download from the bank’s website. After having filled in all the necessary information in the application form, you will have to upload the desired documents. This will initiate the loan process.

After the initiation of the process your CIBIL score and the value of the property will be assessed. The bank will make its final decision after a few more legal and technical checks. It is based on these criteria that the bank decides the amount of loan to be sanctioned. In case of any discrepancies, there is high possibility for the bank to reject the application from being processed further.

If you are an existing savings account customer of Andhra Bank then it makes the process even faster. The loan approval and the verification process are quick and simple. You also get some prepaid offers on the home loan.

The amount of loan gets credited to your account instantly once it is approved.

Document Checklist for Andhra Bank Home Loan

Here are some of the documents that you need to avail the home loan from Andhra Bank.

 

Personal documents for both the applicant and co – applicant:

• A filled loan application
• Address proof
• ID proof
• Photographs

 

Income proof for agriculturalists:

• Income certificate produced by the Revenue Authority stating the income drawn from agriculture and other related activities.
• Document proving land holding.

 

Income proof for Salaried employees:

• Latest salary certificate
• An employer issued Form 16
• Undertaking letters from the employer.

 

Income proof for self – employed applicants:

• An income proof stating the income generated for the past 3 years
• Supporting financial documents signed by an authorized Charted Accountant
• Assessment Orders
• Income Tax Returns

 

Documents related to property:

For purchase:

• Address and Name of both the purchaser and the vendor.
• Sale agreements between the purchaser and the vendor.
• Tax receipts.
• Photographs of the property’s title deed in the vendor’s possession.
• Original receipts of payment done to the vendor or builder.
• Approved copy of the plan.
• Life certificate and valuation.
• Approval of lay out of the plan.

For construction:

• An approved copy of the house plan.
• Cost estimation with every detail highlighted.
• Original title deed of the site proposed.
• NIL Encumbrance Certificate.
• Agreement for the development of the property which is signed between the builder and the owner of property.
• An allotment letter for the housing flat issued by the housing board.

 

In the case of a salaried employee drawing monthly salary from Andhra Bank:

• A letter requesting the recovery of EMIs from the borrower’s account as debit

 

In the case of a salaried employee not drawing monthly salary from Andhra Bank:

• An irrevocable undertaking letter from the employer

 

In the case of a loan takeover:

• A statement of the loan account confirming that the asset is a performing asset.
• P and C Report of the borrower.
• A pre – closure from the bank mentioning the payable amount.

 

Other General Documents:

• Post – dated cheques ( for 12 months minimum)
• A credit information report (CIBIL)
• Original copy of the deed
• Ban statement for the past 6 months
• Plan of the flat of house approved by authorities
• An NOC from the authorities of Urban Land Ceiling
• A sketch of the location of the proposed flat or house
• A legal audit
• A letter from the applicant declaring his or her financial resources in order to meet the margin amount or any difference in the cost of the property.
• A sale agreement between the buyer and the seller.
• Address and full name of the seller.
• Copies of document title and link documents of the property that the seller has along with receipts and tax invoices.
• A letter of authorization that permits collection of the original title deed once the registration is done.
• A delivery receipt that is provided by the Registrar of Assurance.
• An original payment receipt given to the seller and buyer.
• A copy of the approved plan of the building and a letter from the seller stating the age of the property.
• A certificate from the engineer stating the current value of the house, the condition of the property and its life.

 

Additional document required in the case of an out right purchase of a property:

• An allotment letter from the Housing Board issued for the flat and house
• A detailed estimate stating the cost of the property by an approved engineer from the bank including the age and present condition of the house.
• A development agreement signed between the owner of the property and the builder
• Original receipts of payments made by the borrower to the builder.

 

Documents required in the case of house purchase for NRIs:

Following are the necessary documents that an NRI should have in possession along with the above said documents to avail for a home loan from Andhra Bank:

• A copy of visa or passport
• A valid work permit offered in the present country of residence
• An application status for persons of Indian origin or for Non-Resident Indian.
• Due date, endorsement, and issue date of passport.
• A GPA in favour of the parent or spouse
• An agreement copy from the current employer.
• An income proof which can be shown through income tax return or salary certificate.
• The process of taking up the citizenship in the abroad country.
• The transaction should have been conducted by the applicant himself.
• An undertaking that states that the amount of loan taken form Andhra Bank will not be used to purchase a farmhouse, agricultural or plantation land in India.
• Form 16.

Note: If any document enclosed with the loan application is in any other language apart from English, a translation of the same in either English or Telugu is mandatory.