Andhra Bank

ANDHRA BANK LOAN AGAINST PROPERTY

Apply Andhra Bank Loan Against Property

What is Loan Against Property?

Loan Against Property is an advance against a mortgaged property. The property, whether residential or commercial, is set as collateral to a bank or a non-banking financial company and remains mortgaged until the loan is repaid in full. The proceeds of the loan can be utilised for any purpose except speculative in nature. This loan is a convenient and hassle-free way to handle any financial emergency. It is an ideal way to unleash the power of your property. Funds can be used as working capital investment to start a new business or can be used to fund personal needs like medical emergencies, education, marriage, or even a family holiday. The borrower is under no obligation to submit an end-use certificate. The loan taken against property is repaid in Equal Monthly Instalments or EMI.

A Loan Against Property is one of the best ways to meet your heavy urgent financial needs. The scheme comes as a boon because the borrower is not required to sell off their real estate to avail the loan. The repayment happens in easy monthly instalments and upon completion of loan tenure, the ownership rights will roll back to a clear title.

Why Avail Andhra Bank Loan Against Property?

Any individual who owns a residential or commercial property can apply for a Loan Against Property from Andhra Bank. Andhra Bank Loan Against Property is a hassle-free and convenient scheme. It offers loan at a competitive rate of interest and low processing fee.

Borrowers of Andhra Bank Loan Against Property enjoy the following benefits:

  • Different schemes of Loan Against Property allow the potential borrower to choose the best form of loan.
  • The loan application, scrutiny, and approval system is quick and hassle-free
  • Enjoy low rate of interest on Loan Against Property starting at 10.15% p.a.
  • No hidden charges on loan approval
  • Flexible repayment option through easy EMI
  • Long repayment tenure
  • No cap on maximum loan amount
  • Loan Against Property can also be offered to existing Home Loan customers if they have a satisfactory repayment period of at least 12 months, including repayment period served with other banks (in take over loans).
  • Half-yearly instalments can also be fixed

Types of Andhra Bank Loan Against Property

Andhra Bank offers Loan Against Property under two categories - Property Term Loan and Property Overdraft. 

The details and key features of both the schemes are as under:

Andhra Bank Property Term Loan (ABPTL)

Purpose of loan

  • Loan Against Property can be used for business or personal needs like working capital investment, purchase, extension of property, education, medical expense, wedding, family holiday, etc.
  • The borrower is not required to submit an end-use certificate.
  • The loan proceeds cannot be used for trading or speculation purpose.

Loan amount

  • The minimum loan limit is fixed at 2,00,000.
  • There is no maximum ceiling limit for Loan Against Property.
  • The value of the loan depends upon the market value of the property.

Rate of interest

10.15% - 10.65%

Loan tenure

Maximum of 15 years (180 months) is allowed as a loan term for Loan Against Property.

Security

  • The property should not be agricultural land
  • Residential/commercial/industrial building/ plot are eligible for Loan Against Property.
  • The age of the building should be above 25 years.
  • The remaining life of the building should be more than 15 years.
  • The property should be free from all encumbrances and the applicant should have a clear marketable title on the concerned land/building for the proposed finance under the scheme.

Processing fee

1% of the sanctioned loan amount + applicable GST, subject to a minimum of 1,000 and maximum of 1,00,000.

Margin

40% of the Realizable Market Value

Maximum loan eligibility

  • Salaried & Pensioners: 60 times Gross Monthly Salary as per last 2 years' ITR or last 3 months' salary certificate.
  • Professionals, Self-employed, & Individuals Engaged in Agriculture & Allied Activities: 5 times average annual income (of last 2 years) as per ITR.
  • Partnership Firms, Limited Companies, & LLPs: 3 times average cash profit (of lat 2 financial years) as per audited balance sheet. And 3 times of average income as per last 2 years ITR for unaudited firms. The entity must obtain NOC from other banks where they have credit facilities.

Andhra Bank Property Overdraft (ABPOD)

Purpose of loan

  • Loan Against Property can be used for business or personal needs like working capital investment, purchase, extension of property, education, medical expense, wedding, family holiday, etc.
  • The borrower is not required to submit an end-use certificate.
  • The loan proceeds cannot be used for trading or speculation purpose.

Loan amount

  • The minimum loan limit is fixed at 2,00,000.
  • There is no maximum ceiling limit for Loan Against Property.
  • The value of the loan depends upon the market value of the property. 

Rate of interest

10.65%

Loan tenure

Overdraft facility with 10% cut back each year on original limit sanctioned, to liquidate the loan at the end of 10 years.

Security

  • The property should not be agricultural land
  • Residential/commercial/industrial building/ plot are eligible for Loan Against Property.
  • The age of the building should be above 25 years.
  • The remaining life of the building should be more than 15 years.
  • The property should be free from all encumbrances and the applicant should have a clear marketable title on the concerned land/building for the proposed finance under the scheme.

Processing fee

300 per lakh + applicable GST, subject to minimum of 1,000 and maximum of 25,000 + GST.

Margin

50% of the Realizable Market Value

Maximum loan eligibility

  • Salaried & Pensioners: 60 times Gross Monthly Salary as per last 2 years' ITR or last 3 months' salary certificate.
  • Professionals, Self-employed, & Individuals Engaged in Agriculture & Allied Activities: 5 times average annual income (of last 2 years) as per ITR.
  • Partnership Firms, Limited Companies, & LLPs: 3 times average cash profit (of lat 2 financial years) as per audited balance sheet. And 3 times of average income as per last 2 years ITR for unaudited firms. The entity must obtain NOC from other banks where they have credit facilities.

Supervision charge

  • Loan up to 10 Lakhs: 1,000
  • Loan above 10 Lakhs and up to 50 Lakhs: 2,500
  • Loan above 50 Lakhs: 5,000

Andhra Bank Loan Against Property Interest Rate

The interest rates on Andhra Bank Loan Against Property are linked to repo rate.  The current repo rate lending rate (RLLR) for Andhra Bank is 8.10%. The applicable rate of interest on Andhra Bank Loan Against Property are as follows:

ABPTL (Property-Term Loan)

For tenure up to 36 months

RLLR + 2.05% = 10.15%

For tenure above 36 months and up to 60 months

RLLR + 2.05% + 0.25% = 10.40%

For tenure above 60 months

RLLR + 2.05% + 0.50% = 10.65%

ABPOD (Property-Overdraft)

RLLR + 2.55% = 10.65%

Andhra Bank Loan Against Property - Processing Fees & Other Charges

Type of Charge Details

Processing fee

  • ABPTL (Property-Term Loan): 1% of the sanctioned loan amount + applicable GST, subject to a minimum of 1,000 and maximum of 1,00,000.
  • ABPOD (Property-Overdraft): 300 per lakh + applicable GST, subject to minimum of 1,000 and maximum of 25,000 + GST.

Supervision charge for ABPOD

  • Loan up to 10 Lakhs: 1,000
  • Loan above 10 Lakhs and up to 50 Lakhs: 2,500
  • Loan above 50 Lakhs: 5,000

Andhra Bank Loan Against Property Eligibility

Andhra Bank approves Loan Against Property applications who meet the following eligibility conditions:

Criteria ABPTL (Property-Term Loan) ABPOD (Property-Overdraft)

Who can apply?

  • Salaried individuals
  • Pensioners
  • Professionals
  • Self-employed
  • Individuals engaged in agriculture & allied activities
  • Individuals who have ITR for at least 2 years
  • Partnership firms
  • Limited companies
  • LLPs
  • The entity must be making cash profit for the last 2 years.
  • Salaried individuals
  • Pensioners
  • Professionals
  • Self-employed
  • Individuals engaged in agriculture & allied activities
  • Individuals who have ITR for at least 2 years
  • Partnership firms
  • Limited companies
  • LLPs
  • The entity must be making cash profit for the last 2 years.

Can Non-Resident Indians (NRIs) apply?

NRIs having a regular job abroad in an Indian or foreign company/ organization/government department, can apply.

NRIs are not eligible

Can Trusts/ Societies apply?

No

No

What is the age requirement?

  • Minimum 21 years at the time of applying for the loan.
  • Maximum 65 years at loan maturity.
  • Minimum 21 years at the time of applying for the loan.
  • Maximum 65 years at loan maturity.

Documents Required for Andhra Bank Loan Against Property

To avail a Loan Against Property from Andhra Bank, customer should submit the below-mentioned documents along with the duly filled in application form:

Salaried Employees

Proof of identity

  • Passport size photographs of the applicant
  • Passport
  • Driving License
  • Aadhar Card
  • PAN Card
  • Voter ID
  • Form 60/61
  • Ration Card

Proof of residence

  • Telephone Bill
  • Electricity Bill
  • Property Tax Receipt
  • Passport
  • Voter ID
  • Utility bill should not be older than 3 months

Proof of income

  •  Latest Income Tax Return
  • 3 latest salary slip
  • Form 16 for last 2 years
  • Bank statement
  • Proof of signature

Property ownership documents

  • Conveyance deed
  • Allotment letter
  • Sale deed
  • Latest property tax receipt
  • Approved building plan
  • Title deed documents for 30 year
  • Proof of title in Revenue Records
  • Possession letter
  • Power of attorney
  • Copy of the approved plan of construction or extension
  • Occupancy certificate

Proof of banking record

No objection certificate from banks with ongoing credit facility.

For Self-Employed

Proof of identity

  • Passport size photograph of the applicant
  • Passport
  • Driving License
  • Aadhar Card
  • PAN Card
  • Voter ID
  • Form 60/61
  • Ration Card

Proof of residence

  • Telephone Bill
  • Electricity Bill
  • Property Tax Receipt
  • Passport
  • Voter ID
  • Utility bill should not be older than 3 months

Proof of income

  • Last 2 years IT return with computation of income
  • Audited balance sheet
  • Audited profit & loss account (attach tax audit report if applicable)
  • Proof of turnover vide latest sales
  • Service tax returns

Property ownership documents

  • Conveyance deed
  • Allotment letter
  • Sale deed
  • Latest property tax receipt
  • Approved building plan
  • Title deed documents for 30 year
  • Proof of title in Revenue Records
  • Possession letter
  • Power of attorney
  • Copy of the approved plan of construction or extension
  • Occupancy certificate

Proof of banking record

No objection certificate from banks with ongoing credit facility.

Why Apply for Andhra Bank Loan Against Property through MyMoneyMantra?

Andhra Bank offers Loan Against Property at competitive rate of interest. The product is feature packed and is available under two distinct schemes. Borrower can opt for the scheme that is most convenient and lucrative to them. MyMoneyMantra, the online financial portal, acts as a one-stop-platform that brings together the information and details of different products offered by different financial institutions. The online portal collates the details of different products and services offered by various lending institutions on its portal. This allows the customer to compare and contrast different products and choose the best product after a careful assessment.

Numerous banks offer Loan Against Property, but it is imperative for the customer to understand the fine points of the banking products and services before finalising the deal. MyMoneyMantra through its comprehensive coalition of information brings together the details of every product. This proves helpful for the customer and makes their task easy and hassle-free. The customer is not required to visit different banks or meet representatives to assimilate the fine points of the product. MyMoneyMantra thus acts as a platform to acquire and assess information.

MyMoneyMantra further empowers its customers to use EMI Calculator and other financial tools. Accurate, reliable, and ideal figures allow the customer to reach the best EMI amount without the risk of getting into the debt trap. The portal is self-explanatory and easy to use.

MyMoneyMantra enables its customers to:

  • Accurately evaluate loan eligibility by providing information of repayment history and banking track record.
  • Accurately calculate repayment capacity based on inflows and outflows
  • Make easy comparison between same products of different financial institutions
  • Understand the loan application process and complete the procedure in a systematic manner
  • Be aware of the fine points like rate of interest, processing fee and other charges before finalising the deal.

Why Use MyMoneyMantra EMI Calculator to Calculate Andhra Bank Loan Against Property EMI?

Submitting a duly filled loan application form along with the requisite documents is paramount in the loan application process. However, filling of the loan application process requires an assessment of the total principal amount and the subsequent EMI corresponding to the loan amount. This is important as it makes the borrower aware of the total monthly outflow that should be accounted for. A wrongly calculated EMI can make the matter troublesome for the borrower. MyMoneyMantra's EMI Calculator thus comes in handy at this point. The use of the calculator makes the borrower aware of the ideal EMI amount. If prudently used, the EMI Calculator benefits both the lender and the borrower. The EMI amount is to be paid for the whole tenure of the loan. A very high amount of EMI is difficult to sustain over a long period of time and can, therefore, lead to financial stress. However, too low outflow of EMI per month will lead to an increase in the absolute amount of interest, making the Loan Against Property unviable and expensive.

The table below highlights the EMI payable corresponding to different principal amount and loan tenures. The rate of interest charged on Loan Against Property by Andhra Bank starts at 10.15% p.a. The lowest EMI of Loan Against Property taken from Andhra Bank is 1,084 per lakh for a loan term of 15 years.

Loan Amount

EMI for 5, 10, 15 Years Loan Tenure

5 Years

10 Years

15 Years

1,00,000

2,132

1,330

1,084

10,00,000

21,321

13,298

10,838

50,00,000

1,06,605

66,491

54,190

The above table shows the amount of EMI payable per month for a Loan Against Property availed from Andhra Bank. As evident from the table, an increase in the loan term brings down the EMI payable. However, ironically, a longer duration makes the Loan Against Property more expensive. The borrower should thus make a careful assessment of the EMI amount based on income and fixed liabilities.

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

The EMI Calculator available on MyMoneyMantra is very easy and convenient to use. It also promises accurate results. The portal collates all the information pertaining to loan eligibility on a single screen. Users can compare the information carefully before taking the final call. The information related to interest rates, processing fees, prepayment charges, so on, can also be compared easily.

The EMI Calculator allows loan seekers to ascertain an ideal EMI amount. The calculation can be done through these simple steps:

  • Log in to the website mymoneymantra.com
  • Move to the financial tools tab in the header bat and choose EMI Calculator link from the drop down menu.
  • Enter the information for loan amount, rate of interest, and loan tenure
  • Submit the information
  • EMI amount corresponding to the inputs will appear on the screen
  • In case required, make changes to the parameters to reach the best-fit EMI amount
  • Check loan eligibility and apply for the Yes Bank Loan Against Property directly through MyMoneyMantra.

Frequently Asked Questions - Andhra Bank Loan Against Property

How can I know the EMI payable for my Loan Against Property

The EMI amount payable for the loan amount can be calculated using MyMoneyMantra's EMI Calculator. The monthly instalment will vary depending upon the input of rate of interest, loan amount, and loan term.

Does Andhra Bank allow co-applicants in Loan Against Property?

Yes, two or more applicants can jointly apply for a Loan Against Property provided the mortgaged property is also jointly owned by all co-applicants. The first owner of the property will remain the main applicant of the Loan Against Property.

Does Andhra Bank allow foreclosure of Loan Against Property?

Yes, a Loan Against Property account can be foreclosed before the completion of the whole tenure of the loan. However, prepayment charges will be collected for the same.

Can I avail tax relief on payments made against Loan Against Property?

The Indian Income Tax Law does not allow any relief or tax benefits on payments made to repay a mortgage loan.

How can I repay my Loan Against Property?

The Loan Against Property is repaid in EMIs at any of Andhra Bank branches. Alternatively, you can also give standing instructions to the bank for deduction of instalments from your savings account.

For what purpose can a Loan Against Property be used?

The funds received for a Loan Against Property can be used to fulfil any personal or business needs. The money, however, cannot be used for trading or speculation.

What is the rate of interest charged by Andhra Bank for Loan Against Property?

Andhra Bank Loan Against Property is linked to its RLLR, which is 8.10% at present. The current interest rate starts at 10.15% p.a. It may vary depending on the scheme chosen and repayment tenure.

What are the processing charges charged by Andhra Bank for Loan Against Property application?

Andhra Bank offers Loan Against Property under two schemes - property term loan and property overdraft. The processing fee charged for both vary. Customers who apply for property term loan have to pay 1% of the sanctioned loan amount + applicable GST, subject to a minimum of 1,000 and maximum of 1,00,000, whereas, customers who apply for property overdraft will have to pay 300 per lakh + applicable GST, subject to minimum of 1,000 and maximum of 25,000 exclusive of tax

What is the margin value allowed for Andhra Bank Loan Against Property?

Andhra Bank offers Loan Against Property under two schemes - property term loan and property overdraft. 40% of the Realizable Market Value of the property is allowed as margin for Andhra Bank Loan Against Property under property term loan scheme, whereas, 50% of the Realizable Market Value of the property is allowed as margin for Andhra Bank Loan Against Property under property overdraft scheme.

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