Andhra Bank Home Loan
About Andhra Bank Home Loan
Andhra Bank is India's apex public sector bank. Products and services offered by Andhra Bank come with features to delight all types of customers. The Bank's products and services reflect experience and expertise which makes Andhra Bank one of the most simple, all-inclusive and attentively customer centric bank.
Andhra Bank Home Loan consists of two types of housing finance, the first one is the usual housing loan, known by the name of Housing Loan - General, and the second one is the AB Housing Loan - NRIs. These loans can be utilised for a number of purposes like construction or purchase of a flat or house, purchase of a plot with an intention to construct a residential property on it in the future. The loan can also be used for renovation or repair of an already constructed home.
The main difference between the two types of loans is the customer base that they serve. The usual housing loan serves the construction, purchase and renovation purpose of the prospects living in semi-urban and rural Indian location, while the housing loan for NRIs addresses the problems faced by Non-Residential Indians (NRIs) when they attempt to purchase, renovate or construct a property in India.
Andhra Bank Home Loan
Loan turnaround period
Loan to value (LTV)
Who can apply?
*Interest rates are subject to change without prior information.
Why Andhra Bank Home Loan?
Home Loan by Andhra Bank is one of the premier products among the wide array of products that they offer. Below are some reasons why you should opt for Andhra Bank Home Loan:
- A wide variety of loans: Andhra Bank offers a wide variety of Home Loans. The loan can be used for construction or purchase of a house/flat, purchase of a plot where a residential house will be built in the future. There are loans for the purpose of extension, renovation and repair of the existing property.
- High loan to value ratio: Andhra Bank offers LTV as high as 90% of the value of the property.
- Repayment time: The loan repayment tenure is a convenient 30 years.
- Loan margin: Margin requirement of the bank on a Home Loan is relatively low.
- Loan for renovation and repairs: If the property is not more than 5 years old, then the loan amount can go up to 10 lakhs. If the age of the property is between 5 years and 25 year, 15 Lakhs is the maximum amount that can be disbursed by the bank.
Features and Benefits of Andhra Bank Home Loans
Andhra Bank offers following features and benefits to its Home Loan customers:
- Loans for all purposes: You can avail housing loans to purchase construct a house, purchase a piece of land to build your house, and renovate, extend or repair your existing property.
- High loan amount: You can get funds up to 90% of the value of your property to be purchased. All you need to arrange is 10% margin for down payment.
- Loans for all: Whether you are an Indian citizen residing in India or an NRI, you can avail this Home Loan.
- Long repayment time: The loan repayment tenure is a convenient 30 years.
Andhra Bank Home Loan Interest Rates
Documents required for Andhra Bank general housing loan and Andhra Bank housing loan for NRI's are different but the margin requirements and rate of interest are same for both:
Loan to Value (LTV)
Interest Rates of Women Borrowers*
Interest Rates for Other Applicants*
Up to 30 Lakhs
Above 30 up to 75 Lakhs
Above 75 Lakhs
Home Loans for repairs and renovation
*Interest rates are subject to change without prior information.
Andhra Bank Home Loan - Processing Fee and Other Charges
- Processing charges: 0.50 % of the sanctioned loan amount (up to maximum 10000) + applicable taxes.
- Prepayment Charges for Home Loans with floating rates of interest: Nil
- Administrative charges:
For loan amount up to 10.00 Lakhs: 100 per quarter
For loan amount above 10 Lakhs to 15 Lakhs: 150 per quarter
For loan amount above 15 Lakhs: 250 per quarter
Types of Andhra Bank Home Loans
Andhra Bank provides the following types of loans to its customers:
1. Housing Loans - General: Eligibility for this loan is based on the repayment capacity of the borrower. This loan can be taken for construction of a residential property, purchase of an already constructed house or flat and for repair and renovation.
- For purchase of plot: The plot to be purchased should come under the jurisdiction of the municipal corporation and should be in the metro, urban and semi urban areas. Some state owned agencies and housing boards offer sites for sale. Andhra Bank will consider extending a loan for the purchase of sites offered by housing boards as well. Also, the construction should start within 12 months of disbursement of loan and the construction should be completed within 30 months from the date of start of construction. Failing to comply with these guidelines will result in charge of interest rate meant for commercial plots.
- For renovation and repairs: If the property is not more than 5 years old, then the loan amount can go up to 10 Lakhs. If the age of the property is between 5 years and 25 years, 15 Lakhs is the maximum amount that can be disbursed by the bank.
2. AB Housing Loans - NRI: This loan is meant for Non-residential Indians seeking a loan to buy a plot or a residential house or flat or for renovation and repair of an existing property. Looking at the age of the property, Andhra Bank will disburse the loan amount up to 10 Lakhs if the property is less than 5 years old and up to 15 Lakhs if the property is up to 25 years old.
Andhra Bank Home Loan Eligibility Criteria
Different banks have a different set of rules when it comes to eligibility criteria. Indian citizens who are salaried and self-employed have the same eligibility criteria. To avail Andhra Bank Home Loan, it is mandatory for an individual to be an Indian or a person of Indian origin. Individuals can be salaried, self-employed professionals and self-employed non-professionals. Andhra Bank assesses an individual's repayment capacity by examining the financial position and present condition. Age is also an important factor when it comes to eligibility criteria.
- Your current income: The applicant must have a regular source of monthly income and to prove that, they have to present their salary slips, bank statement, and other documents. Self-employed individuals have to furnish financial records, accounts and financial statements to show in detail the credits for good and services sold by them.
- Continuity of employment/business: Salaried employees should furnish Income Tax Return (ITR), Form 16 and Form 26AS to show the continuity of employment. Self-employed individuals need to bring financial statements like balance sheet, profit and loss statement to prove continuity of business. ITR is also required to complement the financial statements.
- Current obligations: At the time of taking a loan, an applicant may have an existing loan. Banks have to take into account these installments as well to calculate eligibility for a Home Loan.
- Credit history: Credit history of an applicant is of utmost importance to a bank to assess the credibility of the applicant. Bureaus like CIBIL, Experian, and others are responsible for keeping a track of loan related activities of every borrower. These credit bureaus assess your credit history to generate your credit score. A score is a number generally between 300 and 900. Defaults in payments can substantially lower your CIBIL score. A CIBIL score above 650 is considered good and increases your chance of getting a loan.
- Value of the property: Banks run a background check on the property to check whether or not it is free from any discrepancies. After the check, the banks usually sanction 75% - 90% of the value of the property. The balance is the margin for the bank and the balance is to be contributed by the borrower.
- Legal position: Banks finance the land or building. The land or building that they finance is the mortgage as well. So banks rely heavily on reports furnished by the panel of advocates to establish ownership chain of the property.
- Age of the borrower: Person taking the loan should be between 21 and 65 years of age. Also, the age of the individual should not be more than 75 years at the time of loan maturity.
Andhra Bank Home Loan Eligibility Criteria for Non-Residential Indians
Apart from the above mentioned points, a Non-Residential Indian citizen has to meet the following eligibility criteria:
- Abroad service: The Non-Residential Indian citizen must have at least one year of service abroad.
- Joint application: It is mandatory for an NRI individual to apply jointly with a close Indian relative.
- Documents: The applicant must submit a copy of passport, VISA, and work permit agreement with the present employer.
- Purpose: The purpose of the loan should be specified which may be purchase or construction of a flat or residential house, purchase of a plot for the purpose of constructing a residential house over it in the future or for repair or renovation of an existing property.
- Power of attorney (PA): PA should be registered in India and the PA should be attested by an Indian Consulate/High Commissioner abroad.
Documents Required for Andhra Bank Housing Loan - General
The Indian Andhra Bank Home Loan applicants need to submit a list of documents asked by the bank including following:
Completely filled application form
Identity and address proof of the applicant as well as all co-applicants and co-obligants
Recent passport sized photographs of the applicant as well as co-applicants
Income proof of applicant,co-applicants and co-obligants
Business Owner and Self-employed Individuals
Last salary certificate, Form 16 issued, and Undertaking letter issued by the employer
Income certificate from competent Revenue Authority in regards to the income earned from agricultural and related activities, and Documentary proof of land holding
Last 3 years Income Proof supported by , Profit & Loss Account, and other financial statements duly certified and signed by a Chartered Accountant/ Assessment Orders/ ITR.
Property statement of main applicant, co-applicants, and co-obligants
Letter to recover the loan instalments by debit to the applicant's account - If the salaried applicant is drawing a salary at the branch
At least 12 post-dated cheques
Bank account statements of last 6 months
Signature proof attested by the Banker
A declaration letter by the applicant saying they don't have any similar loan taken from other branch of the same bank or any other bank.
Credit information report from CIBIL
Copy ororiginal title deed of the property
Copy of nil encumbrance certificate from the competent authority
Documents Required for Andhra Bank Home Loan for NRIs
NRIs seeking a Home Loan from Andhra Bank need to furnish the following additional documents:
- A copy of passport, work permit, VISA,agreement with current employer as a proof of their employment abroad.
- Power of Attorney should be registered in India and the PA should be attested by an Indian Consulate/High Commissioner abroad.
- Applicant's property statements
- Sketch and location of the proposed property
- 12 post-dated cheques at least
Other Products by Andhra Bank
Andhra Bank is one of the leading public sector banks in India and provides its customers with a host of products and unmatched customer service. Here are some other products offered by Andhra Bank apart from housing loans:
- AB Mortgage Loans
- AB Reverse Mortgage Loans
- AB Personal Loans - Clean Loans
- Doctor Plus
- General Four Wheeler Loans
- General Two Wheeler Loans
- Four Wheeler Loans for Women Borrowers
- Two Wheeler Loans for Women Borrowers
- Pattabhi Vidya Jyoti Education Loans
- Loan Against Gold for Non-agricultural purposes
- AB Advance Against Rental Receivables
- AB Professional Loan
- Loan Against KVPs, NSCs and LIC Policies
How to Calculate Andhra Bank Home Loan EMI?
MyMoneyMantraallows you to make use of the EMI calculator to calculate your EMI obligations for all loans. On top of it, the EMI calculator helps applicants understand the factors for choosing Andhra Bank Home Loan over Home Loans offered by other banks. Using the EMI calculator, you can estimate the cost of the loan and plan your monthly obligations accordingly.
EMI calculator is designed in such a way that a layman can use it without facing any difficulty. Enter the loan amount along with the tenure of the loan and the interest rate of the loan. The EMI calculator gives you the instant EMI distribution of the entire loan. This helps you to plan your EMI and tax obligation.
Why Apply for Andhra Bank Home Loan on MyMoneyMantra?
On MyMoneyMantra, the loan application process is very easy and lenient. You can check your Home Loan eligibility and also customise your Home Loan details. Customers can enjoy the below mentioned features on MyMoneyMantra:
- Customised quotes: MyMoneyMantra offers customers customised loan offers after taking into consideration their CIBIL scores.
- Eligibility check: MyMoneyMantra instantly checks your eligibility to take a Home Loan.
- Simple documentation: The documentation is the most tedious part when it comes to a Home Loan approval or even rejection. MyMoneyMantra helps simplify the loan process which in turn reduces the loan turnaround time.
- E-approval facility: Applicants can get their loan applications approved online without the necessity to visit any bank branch.
- Privacy: MyMoneyMantra assures that your information remains private and goes to the concerned loan section of Andhra Bank.
MyMoneyMantra assesses your profile, credit score and runs a thorough background check on your profile to check your credibility. MyMoneyMantra operates well within the rules and compliances under which banks offer loans.
How to Apply for Andhra Bank Home Loan on MyMoneyMantra?
If you wish to apply for Andhra Bank Home Loan online, you can do so through MyMoneyMantra. All you need to do is visit www.mymonymantra.com, click on Home Loan under the Loans tab, fill in all the required details and submits the online application form. You will soon receive a call regarding documents pickup and further process.
Andhra Bank Home Loan Customer Care
You can connect with Andhra Bank's customer care cell for any queries and grievances.
The toll free number of Andhra Bank is active 24 x 7 allowing the customer to reach out to Andhra Bank at any point of time. Apart from the toll free number, you can get in touch with the bank through SMS, e-mail and through their website as well.
The bank remains closed on second and fourth Saturdays of the month, so you can contact the bank in case of any problem on working days between 10AM and 5PM.
Following are the contact details to connect with the Andhra Bank Customer Care
Toll Free Number: 1800 425 1515 (Tele Banking)
Telephone: 040 23234313, 23252000 Extension: 2422, 2577
Email ID: email@example.com
Head Office Address
Secretariat Road, Saifabad
Hyderabad 500 004.Telangana
Andhra Bank Latest News
Andhra Bank raises MCLR by 0.15% for various tenures
16 August, 2018: The state-owned Andhra Bank has raised the marginal cost of funds based lending rate (MCLR) by 0.15% which makes the new MCLR to go as high as 8.70% for various tenures. The Andhra Bank has increased the MCLR with effect from August 16, 2018 for overnight, 1 month, 3 month, 6 month and one year tenures. The bank has increased MCLR by 0.15% to 8.15%, 8.20%, 8.40%, 8.55% and 8.70%, respectively. Earlier in August, the Reserve Bank of India (RBI) raised its benchmark interest rate for the second time by 25 basis points on inflationary concerns.
Andhra Bank raises MCLR by 5 bps to 8.55% for various tenures
15 June, 2018:Andhra Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.05% to up to 8.55% for various tenures. Andhra Bank has increased the MCLR with effect from June 15, 2018 for overnight, 1 month, 3 month, 6 month and one year tenures. The bank has increased MCLR by 0.05% each to 8%, 8.05%, 8.25%, 8.40% and 8.55%, respectively. This will result in making consumer loans such as auto, car and Home Loans expensive for customers. The Reserve Bank of India (RBI) had earlier this month increased the key lending rate by 0.25% to 6.25%.
Frequently Asked Questions
Who can be a co-applicant of the Home Loan?
Anindividual can apply for a Home Loan jointly with their spouse or male child. Adding a co-applicant can help you sanction a greater loan amount.
In case of a joint application, will the income of the co-applicant be considered for loan eligibility?
Yes. For a joint Home Loan, the income of all the co-applicants is considered jointly for loan eligibility. The co-applicant has to provide the required documents in that case.
If the loan is jointly applied by a co-applicant, is it compulsory to register the property in joint names?
No, there is no need to register the property in joint names.
Can I prepay my Home Loan?
Yes, you can prepay your Home Loan. However, there are applicable prepayment charges which the borrower has to pay.
What are the reasons for rejection of my Home Loan application?
There are a number of reasons for the rejection of your Home Loan application. Some of the reasons could be unstable employment, low credit score, not falling into the age limit, insufficient income, so on and so forth. In case your Andhra Bank Home Loan is rejected for any reason, the bank will send you a rejection letter specifying the reasons for rejection.
Does Andhra Bank offers any no rejection loans?
No. A Home Loan is a pretty significant investment on the part of the banks. Also, the banks don?t want to incur losses in the future. As a result, banks will check your background thoroughly to ensure that your Home Loan application is free from any discrepancies. If there is no discrepancy on your part, your loan will be approved without a hassle.
Can my Home Loan application get rejected even if I have a good credit rating?
In addition to your credit score, banks take into account a number of factors while granting a Home Loan. If an applicant fails to comply with any of the guidelines, they might experience a rejection of their Home Loan application.
What is the margin requirements on Home Loans offered by Andhra Bank?
Generally Andhra Bank will lend you up to 90% of the value of the property. This percentage fluctuates between 75% - 90% based on the property and the applicant. However, Andhra Bank on an average keeps 20% margin which means that Andhra Bank on an average lends you 80% of the value of the property. The remaining amount has to be contributed by the applicant.
Can a friend be a co-applicant of a Home Loan?
Andhra Bank mandates that the co-applicant should be an immediate family member. A friend cannot be a co-applicant.
How can I pay Andhra Bank Home Loan?
You can pay through standing instructions to debit your savings account, you can use post-dated cheques and electronic clearing system.
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