| Loan Amount | 1 Lac to 75 Lacs or above |
| Interest Rate | 8.45% – 9.45% |
| Tenure | Maximum 30 Years |
| Processing Charges | 0.50% of Loan Amount or Minimum Rs. 10,000 plus tax. |
| Pre-closure Charges | Nil |
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.
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.
- 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.
- 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.
- 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%.
What’s your need?
- Home Loan
- Home Loan for NRIs
Salaried Borrowers –
Eligibility –
- The minimum age limit for salaried borrower is 21 years and maximum is of 65 years.
- Minimum take home salary should be Rs. 25,000 per month.
- Co-applicant applicable in case of HL & LAP, Spouse/Parents/Children.
- The borrower should have a regular source of income.
Documentation –
General Documents –
- Duly filled application form.
- Proof of identity for the borrower and the co-borrower.
- Proof of residence for the borrower and the co-borrower.
- Passport size photographs of both the borrower and the co-borrower.
Income Documents –
- The borrower need to submit latest 3 years payslip, 6 months salary account bank statement and latest year Form 16.
- Any current obligation such as installments (EMIs), number of credit cards used by the borrower along with the credit limit.
KYC Documents –
The borrower need to submit PAN Card, ID proof such as Voter ID card, Aadhaar Card, or Driving License, passport size photograph.
Proof of Employment –
The salaried borrower should submit Form 16 or Appointment Letter, dated 2 years or earlier period.
Property Documents –
- In case of under-construction property, the borrower need to submit proof of booking amount paid, allotment letter, and payment schedule.
- In case of Plot and Self-Construction, the borrower has to provide Parent Documents, Khata (7/11 extract), Sale Deed, and Latest EC.
- If it is a Ready Property, then in that case documents such as Property Tax paid certificate, Parents Documents, Sale Deed, Khata (7/11 extract) and latest EC should be provided.
- Authorization letter in order to receive original title deeds on registration from Registrar of Assurances.
- The borrower need to provide location sketch of the proposed house/flat.
- Certificate from the Approved Engineer about Present value, condition and life of the house/flat.
- Property Statements of the Applicant/Co-Obligant.
- Original deed of conveyance of land, conveying the individual / proportionate share of land along with agreement for construction.
Self-Employed Borrower –
General Documents –
- Duly filled application form.
- Proof of identity for the borrower and the co-borrower.
- Proof of residence for the borrower and the co-borrower.
- Passport size photographs of both the borrower and the co-borrower.
Income Documents –
- For Self-Employed & Professionals, Income proof for the last 3 years supported by financial statements signed by Chartered Accountant – income tax returns /assessment orders are to be submitted.
- Existing obligations such as EMIs the borrower is paying, number of credit cards he/she is having, and details of the credit limits.
Proof of Employment –
For self-employed borrowers, Income Tax Return or Sales/Service Tax registration Certificate, dated 2 years or earlier period.
Property Documents –
- In case of under-construction property, the borrower need to submit proof of booking amount paid, allotment letter, and payment schedule.
- In case of Plot and Self-Construction, the borrower has to provide Parent Documents, Khata (7/11 extract), Sale Deed, and Latest EC.
- If it is a Ready Property, then in that case documents such as Property Tax paid certificate, Parents Documents, Sale Deed, Khata (7/11 extract) and latest EC should be provided.
- Authorization letter in order to receive original title deeds on registration from Registrar of Assurances.
- The borrower need to provide location sketch of the proposed house/flat.
- Certificate from the Approved Engineer about Present value, condition and life of the house/flat.
- Property Statements of the Applicant/Co-Obligant.
- Original deed of conveyance of land, conveying the individual / proportionate share of land along with agreement for construction.
NRIs
Eligibility
- An NRI with a minimum age of 21 to 65 years can avail Andhra Bank Home Loan.
- He/she should have at least one year of service overseas.
- Non-resident Indians (NRIs) and persons of Indian origin (PIO) individually or jointly with resident close relatives.
Documents required in case of purchase of the property
- Agreement for sale between vendor and buyer along with full address of both the buyer and vendor.
- Lay out approval.
- Original receipts for payments made to builder/vendor.
- Providing the copy of the approved plan.
- Copies of link documents of title to the property in possession of the vendor along with tax receipts.
- Certificate from Approved Engineer about the present value, condition and life of the house/flat.
Documents required in case of construction
- Providing other documents specified by Legal Advisor / Sanctioning authority.
- 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.
- Providing the copy of approved plan.
- Detailed estimate of construction.
Andhra Bank Home Loan Products
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 | Rate of interest (Women) | Rate of interest (Others) |
| Up to 30 lakhs | 90% | 10% | 8.45% (1 Year MCLR + 0.10) | 8.50% (1 Year MCLR + 0.10) |
| Above 30 lakhs and up to 75 lakhs | 80% | 20% | 8.45% (1 Year MCLR + 0.10) | 8.50% (1 Year MCLR + 0.10) |
| Above 75 lakhs | 75% | 25% | 8.55% (1 Year MCLR + 0.20) | 8.60% (1 Year MCLR + 0.20) |
| Home loans repairs /Modifications | 75% | 25% | 9.45% (1 Year MCLR + 1.05) | 9.45% (1 Year MCLR + 1.05) |
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.
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 | Rate of interest (Women) | Rate of interest (Others) |
| Up to 30 lakhs | 90% | 10% | 8.45% (1 Year MCLR + 0.10) | 8.50% (1 Year MCLR + 0.10) |
| Above 30 lakhs and up to 75 lakhs | 80% | 20% | 8.45% (1 Year MCLR + 0.10) | 8.50% (1 Year MCLR + 0.10) |
| Above 75 lakhs | 75% | 25% | 8.55% (1 Year MCLR + 0.20) | 8.60% (1 Year MCLR + 0.20) |
| Home loans repairs /Modifications | 75% | 25% | 9.45% (1 Year MCLR + 1.05) | 9.45% (1 Year MCLR + 1.05) |
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.