Andhra Bank Home Loan Eligibility

Andhra Bank is one of India's foremost banking institutions offering Home Loan schemes to both resident and non-resident borrowers looking to finance the purchase, development or renovation of residential properties. From their headquarters in Hyderabad, operation is coordinated across a large network of branches numbering more than 2500 in 25 states.

Acquiring a personal residential property represents one of the greatest achievements for a man, so this is why individuals put in a lot of effort to realise this dream. In order to support would-be homeowners with limited income, Andhra Bank offers Home Loans at varying rates of interest.

Their property loan schemes are divided into three segments, which are:

• Property Purchase Loan
• Property Construction Loan
• Property Renovation Loan

All of these loans fall under Andhra Bank housing loan schemes, and they are designed to meet the specific requirements of the borrower. To ensure that their customers have easy access to the funds that they need at short notice, Andhra Bank has made the application process as seamless as possible. Their loans are issued at prevailing market rates, and there are no hidden charges attached to their loans.

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For any borrower to successfully avail the Andhra Bank Home Loan, here is a list of criteria they must meet:

• Applicant must be aged between 21 - 65 years
• As at the due date of the loan, the applicant must not be above 75 years of age
• The applicant must have a stable means of income
• Applicants can apply for the loan either individually or jointly with a co-applicant
• Eligibility of Andhra Bank Home Loan also varies depending on the repayment capacity
• Applicant must show that he or she can repay the loan within the allotted period

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Here are essential features of Andhra Bank Home Loan:

The current applicable rates of interest are as follows:

*RLLR at present is 8.10%

Here is a list of documents you will have to attach to your loan application form when applying for a Home Loan at Andhra Bank:

Any one of these will suffice for Identity/Residential Proof:

• PAN Card
• Aadhar Card
• International passport
• Utility bills
• Voter Card

Any of these will suffice for Income Proof:

• 6 months statement of account from bank (statement with salary credit is mandatory for salaried applicants).
• Form 16 and salary slip issued by employer (salaried applicant)
• Income proof for the last 36 months, ITR, financial statements and assessment orders attested by a CA (self-employed and professional).
• Income Certificate certified by the Revenue Authority (for Agriculturist)
• Cheque for processing fee and passport photographs

Special documents for Property Purchase Loan

• Seller and Buyer Sale Agreement
• Address and Name of Seller and Buyer
• Tax receipts and copies of the property' title deed
• Receipt of payment to builder or seller
• A copy of the approved plan for the property
• Duly signed life certificate by the Engineer
• Plan layout approval

Special documents for Property Construction Loan

• Copy of approved plan
• Original title deed of approved construction site
• Construction cost estimate
• Copy of agreement duly signed by plot owner and the builder
• NIL Encumbrance Certificate
• House or Flat allotment letter issued to the owner by the Housing Board
• Name/address/sales agreement between Seller and Buyer
• Tax receipts and title deed of the property
• Copy of approved layout plan
• Approved layout plan

Special documents for renovations/repair loan

• Proof of address and identity documents
• Bank statement of account for the last 6 months
• Form 16 and Salaried slip issued by employer(salaried applicant)
• ITR, income proof (3 years), assessment orders, and financial statements from CA (Self-employed and Professionals).

Despite passing all the Andhra Bank Home Loan eligibility criteria, certain factors may impede you from accessing this loan.

Here are some factors you need to guard against when applying for a Home Loan:

1. Your credit score and credit profile

Before you apply for this loan, make sure you check your credit score to see if it is good or not. To do this, you will have to create a credit profile online, which will help you track your score easily. If your score is lower than 650, or your profile cannot be accessed or you have a bad credit history or irregular credit payments, Andhra Bank might reject your housing loan application.

2. Discrepancies/late payment on credit report

Your credit report contains a history of all your financial dealings within a specific period. If you have the terms written off or settled written against any of your entries, your application will be rejected. This is because such terms indicate that you have defaulted on debt payments. Errors in your personal details may also lead to rejection.

3. Low income

If your income is not up to the approved monthly income set for Home Loans by the bank, your application will be rejected. Even if your income is higher than the approved income, your application may still be rejected if your disposal income is below Andhra's approved EMI to salary balance ratio.

4. New job

If you got a job recently, Andhra Bank will not classify such an employment as a stable one. You will have to work with the employer for at least 6 months before you apply. Any application before 6 months on the job will be rejected.

5. If the current employer is not on Andhra Bank' approved list

Applicants working for an employer who is not on their approved list of employers will have their application rejected even if they satisfy every other requirement.

6. If there is an existing legal problem with the property

Andhra Bank will not issue a loan to you if the property in question lacks proper documentation or an existing legal issue. This is because the property will serve as collateral for the loan.

The decision to issue a Home Loan to a customer rests with the bank. There are so many reasons why your loan application may be rejected based on your eligibility status.

To increase your chances of getting this loan, here are some tips to imbibe:

• Obtain an updated credit report: Before you apply to Andhra Bank for a Home Loan, take your time to obtain your personal credit report. Besides obtaining it, take the time out to check each entry in the report. If you find any erroneous information or entry, take the necessary steps to make corrections accordingly (you can seek professional support for this). You also need to evaluate the report to determine your eligibility for this loan. In addition to all these, make sure your credit score is at least 750.
• Settle outstanding debts: Another thing you need to address before time is outstanding debts. If you have any creditor you have not paid off, try to do so before applying for a new loan. If you are not so sure of the number of debt you owe or the value, you can consult your credit report for more information. Debt left unpaid makes you a defaulter, and the bank will reject your application because they will doubt your ability to meet your financial obligations.
• Evaluate your financial capacity: How much EMI will Andhra Bank charge you every month based on the loan amount you are requesting for? At the end of the month, after EMI is withdrawn from your monthly income, how much will be left? These are vital questions you need to answer when doing a personal evaluation of your financial capacity. If your remaining balance for the month falls short of Andhra Bank's salary balance to EMI ratio, your application will be rejected.
• Properly verify the property you wish to acquire: Does the property in question have valid and updated documents? Is the current owner involved in any legal dispute with another party? These are some of the issues you need to address before approaching Andhra Bank for a Home Loan. Properly verifying the property is important because the bank will hold the property as collateral for the loan. If there are any legal issues or the property?s documents are incomplete or outdated, your application will be rejected.
• Get expert advice: If you do a proper assessment of your eligibility, you notice any grey area of concern, there should be no cause for alarm. Finance experts can help you resolve whatever issue you might have with your eligibility.

Your chances of getting the loan amount you seek are brighter if you meet Andhra Bank's eligibility requirements.

An EMI calculator can help you to:

• Identify a loan with the best interest rate that you can afford
• Handle the complex calculation of arriving at the monthly EMI you are expected to pay
• Evaluate your financial commitment without the need to possess any expert knowledge
• Identify an estimate you can comfortably service all through the loan tenure
• Evaluate your amortisation schedule
• Track your information in your loan agreement