Andhra Bank Home Loan

Andhra Bank provides home loans at competitive rates of interest and for longer tenures catering to the various needs of customers. These housing loans can be utilized for the purchase of a ready-to-move home, construction of a house, or for buying a residential plot.

Features & Benefits of Andhra Bank Home Loan

• Andhra bank home loans cover multiple territories such as the metro, urban, semi-urban or rural locations wherein the branches of Andhra Bank are providing their services.

• Dedicated service desk for the NRI customers who are looking to borrow home loan products, wherein all the specific concerns about the home loan application, documentation process, and disbursal is addressed.

• Andhra Bank is one of the prominent public sector banks offering home loan products across India to both the resident and non-resident customers. Headquartered in Hyderabad, Andhra Bank operates a notable network of over 2500 branches and has a strong presence in 25 states and three Union Territories across India.

• Higher quantum of finance, i.e., loan amounts of up to 90% of the property value is provided for a conventional home loan, and loan amount up to Rs. 2,50,000 is offered for NRI home loans.

• For repair and renovation home loans, an amount of up to 10 lakhs is offered for the property aged five years or less, and up to 15 lakhs is given for property aged more than five years.

• In Andhra Bank, the payout tenure is offered up to a maximum of 30 years.

• The applicable margin for an amount of up to Rs. 30 lakhs is 10%, for a loan amount between 20 lakhs-75 lakhs is 20%, and for an amount above 75 lakhs it is 25%.

Home Loan Interest Rate

Home Loan Amount	Minimum Margin	ROI	LTV
Up to 30 lakhs	10.00%	MCLR plus 0.10 %	90.00%
30 lacs-75 lakhs	20.00%	MCLR plus 0.10 %	80.00%
More than 75 lakhs	25.00%	MCLR plus 0.20 %	75.00%
Repairs/Modifications	25.00%	MCLR plus 1.05 %	75.00%

Top Banks Offering Lowest Home Loan Interest Rate in 2019

Home Loan Provider	Home Loan Interest Rates	Processing Fees	Prepayment Charges
Yes Bank	9.85%	0.5% of loan amt. or Rs.10,000 whichever is higher (+GST)	NIL for floating rate loans
SBI	8.55%	Rs. 0 – 10,000	NIL
HDFC Bank	8.65%	Up to 0.5% of loan amt	NIL
ICICI Bank	8.80%	0.5% – 1.00% of loan amt.	NIL
PNB Housing Finance	9.10%	Up to 1% of loan amt	NIL
Axis Bank	8.90%	Up to 1% of loan amt	NIL
IDBI Bank	8.75%	0.5% of the loan amount	NIL
Punjab National Bank	9.05%	Nil	NIL
Canara Bank	8.70%	Varies based on applicant profile	NIL
Bank of Baroda	8.70% - 9.70%	0.25-0.50%	Nil for floating rate loans
Kotak Bank	8.90% - 8.75%	Maximum 2% of the loan amount + GST( it varies as per the loan amount)	6% of the foreclosure loan amount within one year and 5% plus GST otherwise.
IndusInd Bank	9.50%	Up to 2%	NIL
RBL Bank	10.45-11.80%	Rs. 5000-15000	Nil for floating rate loans
Andhra Bank	8.75%	0.5% of the loan amount	NIL

Andhra Bank Home Loan Process

Apply for a home loan online and offline

• The home loan approval & verification process is simple and much quicker for the existing customers of Andhra Bank. They can apply online and get offers on home loans at lucrative interest rates. In that case, the loan amount is directly credited to the customer's account instantly.

• The application process is quite different for new customers. The borrower either needs to apply online or visit the nearest bank branch. The customers can also call the Home Loan Customer Care to start the application process.

• Generally, the bank's representative visits the customer's office or home at an allotted time to collect the duly filled and signed application form and all the essential documents that are required for verification purposes. The background check would help the lender to know about the personal and professional standing of the applicant.
  If there would be any discrepancies with the information provided, the home loan application will be rejected. After clearing the document verification and eligibility criteria stage, the approval process will move to the final level. After the negotiations with Andhra Bank at the final stage, the interest rate and the tenure are fixed and sent for your acknowledgment.

• In case your home loan application is rejected, you will receive a rejection letter from the bank showing a status update on the home loan rejection. 

Types of Home Loans

Home Loan for Buying/ Constructing a New House or Flat

• Available to salaried individuals with or without pension either individually or as a co-applicant with family members.

• The home loan is also available for agriculturists, business, and self-employed professionals who are getting a regular flow of income (without too much debt).

• The age of the customer should be between 21 years to 60 years.

• The amount of loan is decided based on the repayment capacity of the borrower.

• In cases of co-applicants, the repayment capacity is computed on a consolidated basis.

• The processing fee of the home loan is charged at 0.50% of the loan amount or Rs. 10000/-, whichever is higher.

• Nil prepayment is charged for the home loan on floating rate of interest.

• An administrative charge is levied quarterly:

  • For loan amount up to 10 lakhs - Rs. 100

  • For a loan amount above 10 to 15 lakhs - Rs. 150

  • For a loan amount of more than 15 lakhs - Rs 250.

Home Loan for Buying a Plot

• The location of the plot should be in a residential area as per the municipal/corporation guidelines in urban and metro areas.

• It is also available for the purchase of plots that are being sold by state-owned agencies such as housing boards in urban and metro areas.

• The maximum time allotted by the bank for the completion of construction is 12 months. 

Home Loan for Repairs and Renovation

• The maximum loan amount for property aged five years - Rs. 10 lakhs.

• The maximum loan amount for the property aged above five years - Rs. 15 lakhs.

• The minimum margin of home loan is kept at 10%, 20% and 25% for a loan amount up to Rs. 30 lakhs, over Rs. 30.00 lakhs-Rs. 75 lakhs and over Rs. 75 lakhs, respectively.

Home Loan for NRIs

• Available for NRIs who are working abroad for the  last one year .

• NRIs and PIOs can apply either individually or jointly with close relatives who are citizens of India.

• The EMIs can also be repaid from an NRI account or from rental income obtained from renting out a property.

• The borrower's close relative can also repay loans through their account in India.

• The applicant needs to submit a copy of passport, visa, work permit, and an agreement with the present employer.

• If any Power of Attorney is issued abroad, it should be attested by an Indian Consulate/High Commissioner and registered in India within three months of its execution.

• For a Power of Attorney issued in India, the same has to be registered locally.

Andhra Bank Home Loan Eligibility

The applicant must qualify against the following requirements to become eligible for a home loan from Andhra Bank:

• The age of an applicant must not be less than 21 years or older than 65 years.

• At the maturity of the loan, the applicant's age must not exceed 75 years.

• The applicant can either apply individually or in conjunction with their immediate family members.

• The age of the property to be bought (For instance: independent house- 25 years, flat- 20 years, etc.) must not exceed a specified period as stated by the bank during the time of loan application.

• NRI applicants must have at least one year experience of working abroad.

• Decent credit score.

• Note: This is a general list, and the bank can request some additional details and qualifications to confirm your eligibility for the loan.

Home Loan Eligibility Based on Salary

Net Income: Your monthly net income (take home salary after all deductions such as PF, ESI and gratuity) determines your home loan repaying capacity.

For instance, if your salary is Rs. 25,000 and the value of the house you are buying is Rs. 40 lakh, then at an interest rate of 8.80% offered by Andhra Bank, the loan amount for which you would be eligible is Rs. 32.42 lakh to Rs. 41.12 lakh depending on your age. Similarly, if your salary is Rs. 75,000, you might get qualified for a loan amount of Rs. 64.84 Lakh to Rs. 82.25 lakh at the same interest rate depending on your age during the time of loan application.

Age                Net Monthly Income in Rupees

                 25,000         50,000   75,000

25 yrs     41.12 Lakh   61.69 Lakh 82.25 Lakh

30 yrs     41.12 Lakh   61.69 Lakh 82.25 Lakh

35 yrs     41.12 Lakh   61.69 Lakh 82.25 Lakh

40 yrs     39.37 Lakh   59.05 Lakh 78.74 Lakh

45 yrs     36.64 Lakh   54.97 Lakh 73.29 Lakh

50 yrs     32.42 Lakh   48.63 Lakh 64.84 Lakh

Andhra Bank will check the nature of your employment, company, and the sector in which you are working. The bank also looks at the work experience of the applicant to check income stability. 

How Much Andhra Bank Home Loan Can I Get on My Property?

The bank will not fund the entire property value. The maximum loan eligibility depends upon the value of the property, as shown below:

Property Value                                LTV

Less than 30 lakh                            90%

Between 30 lakh and 75 lakh          80%

 Above 75 lakh                                75%

Co-applicant: Adding a co-applicant can increase your eligibility for a home loan as it makes your repayment capacity higher if the co-borrower has a good income, low obligation, and a clean credit score record.

Property documents: The legal team of the bank will verify the documents of your property.

Minimum Credit Score for Andhra Bank Home Loan

Credit Score: Your credit history determines your credit score. Andhra Bank considers it as a barometer to gauge your past credit behavior, and hence, credit score becomes the most critical factor in defining your eligibility for a home loan.

While checking your eligibility for a home loan, Andhra Bank will look at the credit report, which would include all past running loans and track record of your repayment. The higher credit score increases your chances of getting the loan approval. Andhra Bank requires a minimum credit score of 700.

Documents Required for Andhra Bank Home Loan

At the loan application stage, the applicant should submit the following documents as proof to substantiate his/her loan request:

• Completed loan application form with self-attested photographs.

• Identity proof of the applicant and co-applicants if any.

• Address proof.

• Passport sized photos.

• Income proof of the applicant and co-applicants. It includes:

• Payslips

• Form-16

• Undertaking letter granted by the employer

• Income certificate

• IT Returns

• Financial statements attested by CA (if the applicant is a business/self-employed individual)

• Postdated checks for a minimum of 12 months.

• Bank statements of the last six months without showing any serious red flags.

• An undertaking from an applicant that he/she hasn't taken another similar home loan from Andhra Bank or any other bank.

• Some associated documents detailing whether the property is to be purchased, constructed, or renovated.

• NRI applicant must submit a copy of his/her passport, visa, work permit, and an agreement with the current employer.

How to Calculate Andhra Bank Home loan EMI?

You can calculate your home loan EMIs through the home loan calculator that is present on mymoneykarma website. 

EMI for different  amounts and tenures at 8.80% 

                                              Tenure of Loan 

Loan Amount (Rs.)      15 yrs 20 yrs   30 yrs

2,500,000                     25,060 22,173 19,757

5,000,000                     50,120 44,345 39,514

7,500,000                     75,180 66,518 59,271

10,000,000                   1 Lakh 88,690 79,027

As it is shown above, for various loan amounts taken at a particular rate of interest, EMI differs by loan tenure at 15, 20, and 30 years. Your EMI becomes higher when you take a loan for a shorter duration of 15 years, and it gets lower when you apply loan for a higher tenure of 30 years. With every EMI, the portion of principal repayment keeps increasing, and the interest component keeps reducing.

FAQ

If not from mymoneykarma.com, then where else can I avail the Andhra Bank Home Loan?

mymoneykarma offers a convenient platform to apply for a home loan from the comfort of your home or office. If you don't want to apply through mymoneykarma, then you can visit any nearest Andhra Bank branches across India and enquire for the same.

Who can I apply with as my co-applicant?

The members of your immediate family can be considered as a potential co-applicant. Usually, the spouse and children of the primary applicant can become the ideal partners while applying for a home loan from Andhra Bank.

What type of tax benefits apply to the home loan from Andhra Bank?

Andhra Bank issues an annual tax claim certificate to help the home loan borrowers in this regard.

Andhra Bank Home Loan News

Andhra Bank revises MCLR rates across loan tenure

Andhra Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenure in May. The move is taken to make retail loans such as housing loans and mortgage loans cheaper. For three months, the rate has been revised to 8.45% while for one year the rate currently stands at 8.75%. The revised rates will be effective from May 15, 2019.