Andhra Bank Housing Loan
Interest Rate
8.65% - 9.70%
Processing Fee
0%
Loan amount
100000 - 1500000
Tenure
Avail Andhra Bank Housing loans for construction or purchase of house/flat. 

The availed loan can be repaid in maximum period is 30 years.

A minimum margin of 10% will be required for loan amount up to Rs. 30 lacs, 20% for limits over Rs. 30.00 lacs to Rs.75.00 lacs and 25% for limits more than Rs.75.00 lacs. A 25% margin will be applicable on loan availed for Home Loan repair / modifications.

In case of purchase of plot, the plot is to be situated in residential areas within Municipal/Corporation limits in Metro,Urban and Semi Urban areas. Finance shall also be considered for purchase of sites offered for sale by state owned agencies like Housing Boards etc. in Metro,Urban and Semi Urban areas.

Along with expansive set of features, easy application process, relaxed tenure, and affordable interest rates Andhra Bank is a certainly one of the leading names in the home loan arena. Andhra Bank comes in two variants - Regular Home Loan and NRI Home Loan. The borrowers can use these loans for multiple purposes such as - constructing/buying a house/flat, buying a residential plot, and for renovating/repairing of the existing house.

Andhra Bank Home Loan at a glance
Annual Interest Rate 8.45% - 9.45%
Loan Term Maximum 30 Years
Loan Amount 1 Lac to 75 Lacs or above
Pre-Closure Charges Nil

Main Features & Benefits

  • Borrowers can avail a home loan to construct/purchase a house/flat, buying a plot, and also for repairing/renovating an existing property.
  • The maximum repayment tenure offered by Andhra Bank is 30 years.
  • Maximum loan offered will be 90% of the cost of construction or the complete value of the property. In case of NRI applicants, the maximum loan offered is Rs. 2,50,000.

Particularly for the loans taken for repairing/renovating, there are specific guidelines -

  • In case the property in question is up to 5 years old, then the maximum loan amount offered is Rs. 10 Lakhs.
  • In case the property is more than 5 years and up to 25 years old, then the maximum loan amount offered is Rs. 15 Lakhs.

Margin applicable on the loan amount is as follows -

  • For the loan amount up to Rs. 20 Lakhs, it is 10%.
  • For the loan amount above Rs. 20 Lakhs to Rs. 75 Lakhs it is 20%.
  • For the loan amount above Rs. 75 Lakhs, it is 25%.

Andhra Bank Home Loan Rate of Interest


Personal Loan Type Applicable Interest Rate
Andhra Bank Housing Loan 8.45% - 9.45% per annum
Andhra Bank Housing Loan for NRIs/PIOs 8.45% - 9.45% per annum

Andhra Bank Housing Loan


Andhra Bank really extends financial assistance if any borrower is looking for construction or purchase of a house/flat in any area like rural, semi-urban, urban and metro etc. The maximum repayment period of the housing loan is 30 years.

Minimum margin 10% for limits up to Rs.30 lacs, 20% for limits over Rs.30.00 lacs to Rs.75.00 lacs and 25% for limits more than Rs.75.00 lacs.

Eligibility of loan amount is based on repayment capacity.

For purchase of a plot:

  • The plot should be situated in residential areas within Municipal/Corporation limits in Metro, Urban and Semi Urban areas.
  • Finance is also available for the purchase of sites offered for sale by state-owned agencies such as - Housing Boards etc. in Metro, Urban and Semi Urban areas.
  • The construction should be commenced within a time period of 12 months from the date of first disbursement of loan for the purchase of plot and the construction thereon should be completed within 30 months from the date of disbursement of first instalment of loan for purchase of plot. In case the borrower fails to comply with, then in that case, it can lead to declassifying of the account from housing loans and charging commercial rate of interest.
  • Assessment of eligible amount of loan is done on the basis of the repayment capacity for both the components of loan – i.e. for the plot and construction together.

For repairs and renovation:

  • For up to 5 years of age of the property, maximum loan of Rs.10.00 lacs is offered.
  • Above 5 years and up to 25 years, maximum loan of Rs.15.00 lacs is offered.

Margin, Loan to Value Ratio & Interest Rate

SLAB LTV Minimum Margin ROI (Women) ROI (Others)
Up to 30 lakhs 90% 10% 8.45% 8.50%
Above 30 lakhs and up to 75 lakhs 80% 20% 8.45% 8.50%
Above 75 lakhs 75% 25% 8.55% 8.60%
Repairs /Modifications 75% 25% 9.45% 9.45%

Salaried Class

  • Salaried class with pension facility, in case of repayment term stretches beyond date of retirement, spouse/family pensioner can join as co-applicant.
  • In case of salaried class without pension benefit loan shall co-terminate at the age of superannuation.
  • Income proof – salary certificates, Form 16 issued by employer, IT returns/ Assessment Orders. Statement of a/c where salary is credited.

Agriculturists, Business & Self-Employed Persons

  • The house loan can be availed by all qualified professionals, self employed and persons with assured income flow from agriculture/business/industry/rents.
  • Loan eligibility is decided on the basis of monthly average income of preceding three years as reflected by IT returns.
  • Income proof for professional and self employed – Income proof for the last 3 years supported by financial statements attested by CA – Income Tax Returns, Assessment Orders, and Statement of Bank account.
  • Income Proof for agriculturists – Income Certificate by a recognized Revenue Authority.

Documents required in case of purchase

  • An agreement for sale between vendor and purchaser need to be submitted.
  • Name and address of both the vendor and purchaser.
  • Copies of link documents of title to the property in possession of the vendor along with tax receipts should be submitted.
  • Original receipts for payments made to builder/vendor.
  • Copy of the certified plan along with a letter from the vendor mentioning the age of the house/flat should be submitted.
  • Certificate from any recognized Engineer mentioning the present value, condition and life of the house/flat.
  • Lay out approval.

Documents required in case of construction

  • It is important you have provided a copy of sanctioned plan.
  • Comprehensive approximate of the construction.
  • Original title deeds of the site.
  • Development Agreement between the owner of the site and builder.
  • Allotment letter of the house / flat issued by Housing Board.
  • NIL Encumbrance Certificate.
  • Any other document specified by the Legal Advisor / Sanctioning authority.

Charges

Processing charges: The loan borrowers will have to pay a processing fee of 0.50 % of the loan amount subject to a maximum of Rs.10, 000 + applicable tax.

Prepayment Charges for floating rate of interest: There is no prepayment charges for the loans having floating rate of interest.

Administrative charges:For loans up to Rs.10.00 lacs – Rs.100 per quarter. For loans above 10 .00 lacs to 15.00 lacs Rs.150 per quarter. For loans above Rs.15.00 lacs Rs.250 per quarter.

Certificate for tax exemption – The applicant can have the certificate for claiming tax benefits and it is only issued once in a year by Andhra Bank.

Loan Liability Insurance – You can get your loan liability insured upon payment of applicable one-time premium and submission of health declaration etc.

Co-applicant – The loan borrower’s spouse or his/her children can become co-applicant.

Andhra Bank Housing Loan for NRIs/PIOs


Along with relaxed repayment tenure, competitive interest rates, varied modes of repayment, Andhra Bank offers housing loans for NRIs/PIOs. The loan can be availed for buying or constructing, repairing/renovating a house/flat.

The borrower can pay the instalment through remittance from outside India or out of funds in his NRE, FCNR accounts or out of rental income. The borrower need to submit copy of Passport, VISA, Work permit, Agreement with his/her present employer.

Age of the Building/Flat -

  • The residual life of the house/flat authorized by the bank’s engineer needs to be at least 10 years over and above the payment tenor suggested for the loan.
  • Proportion of EMI to the net income is key element on which the maximum eligible loan amount will be decided.

For Salaried Class

Maximum amount of EMI that is permissible is 60% of the net salary drawn by the borrower as per his/her latest salary statement. Arrears and deduction such as salary advance recovery are considered as temporary incomes and they are not acknowledged while calculating net salary.

For Non-Salaried Class

65% of monthly average income of last 2 Years as shown by the income tax returns.

If loan is availed for Repairs

The borrower can borrow up to Rs. 10 Lakhs for up to 5 years and Rs. 15 Lakhs for up to 25 years, however this will depend on the age of house/flat.

Issuance of Power of Attorney:

  • Abroad: The PA should be attested by Indian Consulate/High Commissioner and later on should be registered in India within three months.
  • India: In case the PA is issued in India, it should be registered locally. The PA should be specific PA to execute the documents and to execute Debt Acknowledgement.
  • NRI – Dubai (Specific for Dubai located NRIs): People residing in DUBAI, UAE, Sharjah, either individually or jointly with resident close relative (resident). NRI a/c holders and valued constituents having at least one year abroad service. Investment in immovable property in India by an NRI is liable to FEMA guidelines.

Documents if loan is availed for purchase of the property

  • The agreement for sale between the vendor and the buyer should be submitted.
  • Both name and address of the vendor is important.
  • Copies of documents of title to the property and link documents in possession of the vendor along with tax receipts.
  • Endorsement letter from Registrar of Assurances to accept original title deeds on registration.
  • Receipt of delivery issued by Registrar of Assurance for delivering original title deeds.
  • Original receipts for the payment to builder/vendor.
  • Copy of the approved plan and a letter from the vendor about the age of the house/flat.
  • Certificate from the Approved Engineer about Present value, condition and life of the house/flat.
  • Original deed of conveyance of land, conveying the individual / proportionate share of land along with agreement for construction.
  • Layout approval Plan.

Documents if loan is availed for construction

  • Copy of the approved plan.
  • Detailed estimate of construction
  • Allotment letter of the house/flat issued by the Housing Board.
  • Copy/original title deeds of the site
  • Development Agreement between the owner of the site / Builder
  • NIL Encumbrance Certificate for a minimum period of 13 years.
  • Any other document stipulated by Legal Advisor / Sanctioning Authority.

Additional Documents

  • Status of the applicant – NRI / Person of Indian Origin.
  • Passport – Date of issue, due date, and endorsements.
  • Status and due date of VISA
  • Work permit of the Country where the borrower works.
  • Copy of agreement from the borrower’s employer.
  • Proof of Income through Salary Certificate, Income Tax returns.
  • Naturalization process
  • In the event the transactions are done through the borrower or through a resident of India, in which case the borrower needs to submit Power of Attorney as a proof.
  • Undertaking-cum- declaration that the loan shall not be utilized for acquisition of Agricultural / plantation /farmhouse in India and that he is eligible to acquire immovable property in India in terms of FEMA 99 and rules and regulations there under.

Repayment of the Loan of up to maximum 30 years. For salaried class, loan shall co-terminate at the age of superannuation i.e. the age of retirement. Moratorium Period of 30 months.

Mode of Repayment

Mode of Repayment is liable to the terms and conditions decided by RBI. The borrower can repay the loan by way of inward remittance through standard banking channel or by debit to NRE/FCNR (B)/NRO account or by rental income earned by renting out the property. The loan can repaid by the borrower’s close relative using their account in India by crediting the loan account of the borrower.

Margin, Loan to Value Ratio & Interest Rate

SLAB LTV Minimum Margin ROI (Women) ROI (Others)
Up to 30 lakhs 90% 10% 8.45% 8.50%
Above 30 lakhs and up to 75 lakhs 80% 20% 8.45% 8.50%
Above 75 lakhs 75% 25% 8.55% 8.60%
Repairs /Modifications 75% 25% 9.45% 9.45%

The cost of land standing in the name of the applicant can be treated as margin. Relaxation may be sanctioned in deserving cases.

Processing Charges

0.50% of the amount maximum Rs. 10,000.

Prepayment Charges

There are no prepayment charges in case the repayment has been made from income from their own sources/windfall gains.

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