Andhra Bank Loan Against Property

Andhra Bank provides mortgage loans for meeting any financial emergency that a customer could have. In that respect, the bank offers a loan against property, starting at an interest rate of 10.75%, which is one of the best interest rates in India under this category of loans.

Interest Rates

Loan Amount	Rate
Upto ? 25 Lakh	10.75%
? 25 Lakh - ? 50,00,000	10.75%
? 50 Lakh - ? 1,00,00,000	10.75%
Above ? 1 Cr	10.75%

Other Charges

Here are the various charges levied on Andhra Bank loan against property:

• Foreclosure Charges: These charges are to be paid if you want to repay your entire loan amount before the end of the tenure. Andhra Bank permits prepayment of loan against property with zero prepayment charges.

• Processing Fee: The bank levies a processing fee of 1% of the loan amount + GST.

• Other Charges: Bank also levies technical and legal charges, which the customer gets to know during the loan process.

 

Features and Benefits of Andhra Bank Loan Against Property

Some of the best features are:

• Multipurpose Loan: This loan can be used to meet any personal financial needs of a borrower, ranging from medical emergencies to education, etc.

• High Loan Amount: Borrowers can get a loan amount of up to 50% of the mortgaged property value, subject to a maximum limit of Rs 2 crores.

• Competitive Interest Rates: Andhra Bank offers extremely competitive and attractive rates of interest, as compared to other banks.

• Flexible Repayment: A borrower can repay the loan through flexible EMIs within a maximum repayment period of 10 years.

Andhra Bank Loan Against Property Schemes

Features	ABPOD (Property-Overdraft)	ABPTL (Property-Term Loan)
Eligible borrowers	Salaried employees, pensioners, professionals, and self-employed individuals. Individuals engaged in agriculture and allied activities, having ITRs for at least two years.   Other than individuals  Partnership firms, ltd. companies, and LLPs are also eligible for availing a loan under this scheme. The entity should have been making a profit for the last two years.    Trusts and societies are not eligible to avail loans under this scheme.   NRIs are not eligible for POD	Salaried employees, pensioners, professionals, and self-employed individuals. Individuals engaged in agriculture and allied activities, having income tax returns for at least two years   NRIs  Non-Resident Indians (NRIs) having a regular job in an Indian/foreign company, organization, or government department.    Other than individuals  Partnership firms, ltd companies, and LLPs are also eligible for getting a loan under this scheme. The entity should be generating a cash profit for the last two years.    Trusts and societies will not be eligible to avail loans under this scheme.
Age	21-65 years	21-65 years
Limit	Minimum: Rs. 2,00,000/-	Min: Rs. 2,00,000/-
	Maximum: Rs. 2 Crores	Maximum: Rs. 2 Crores
Margin	50% of the realizable market value of the property.	40% of the realizable market value of the property.
Interest Rate	One year MCLR+ 2.55%	Loan period Rate of Interest Up to 36 months One yr MCLR+2.05% Above 36 months-60 months One yr MCLR+2.05%+0.25% More than 60 months One yr MCLR+2.05%+0.50%
Repayment Period	OD Facility with a 10% concession every year on an original limit to liquidate the loan at the end of ten years.	Max: 180 EMIs (Depending upon the requirement, quarterly and half-yearly installments can be fixed)
Upfront Fee	Processing charges @300/lakh + GST (Minimum:Rs.1000/- and Maximum:25000 plus Tax)	@1%of the loan amount + GST Minimum: Rs.1000/- Maximum : Rs.1,00,000/-
Supervision Charge	Up to 10 lakh: INR 1000                               >10 lakh- 50 lakh: INR.2500/-  INR 50 lakh and above: INR 5000/-	Not applicable.

Eligibility Criteria for Andhra Bank Loan Against Property

Here are certain conditions that, as a borrower, you would need to fulfill:

• Property Owner: If you are a property owner, your property should be listed in your name, generating a legal proof of ownership. You can also obtain a loan against the property that your spouse or children own, subject to the child being above 18 years of age.

• Employed: You should have a regular source of income, which you can receive through any branch of Andhra Bank.

• Pensioned: If you are a pensioner, then you should have a regular pension disbursed through Andhra Bank.

• Bank Account: You should hold an account with Andhra Bank to be eligible for a mortgage loan.

• Age: Your age should be at least 21 years to apply for this loan. The upper limit to avail loan against property is 65 years.

• Salary Account: If you don't have a salary account with Andhra Bank, then you need to provide an undertaking from your employer stating that loan installments will be directly remitted from your salary account to the Andhra Bank loan account until the loan is terminated.

• Co-applicant: You can provide a co-applicant to obtain a higher loan amount.

Eligibility Criteria
Age of the borrower	21-65 yrs
Amount of Loan	? 5 Lakh-? 2 Cr
Minimum Credit Score	700 and above
Loan to Value Ratio	Up to 50%
FOIR (Fixed Obligations to Income Ratio)	0.65

Documents Required for Andhra Bank Loan Against Property

Self-Employed

• A filled in loan application form

• Two passport size photographs

• ITR of the last one year

• Identity Proof(any of the following): Passport/driving license/voter ID/PAN

• Residential Address Proof: Leave and license/registered rent agreement/utility bill (up to three months old), passport.

• Business proof documents: VAT/service tax registration, details of business incorporation, company's address proof, P & L (Profit and Loss) account, balance sheets certified by CA, copy of partnership deed, business profile and evidence of business existence.

Salaried Employees

• A filled in loan application form

• Two passport size pictures

• ITR of last one year

• Identity Proof: Passport/voter ID/ PAN//driving license

• Residential Address Proof: Leave and license/utility bill (up to three months old)/registered rent agreement/passport.

• Income Documents: 6 months’ payslip, Form 16 of the last two years, six months’ bank statements reflecting monthly salary credit (and EMI debit if any).

Property Documents

• Registered sale deed/lease deed

• Past sale deed records (each transaction with respect to the property since the first allotment)

• Latest house tax payment receipts

• Approved building plan from the Municipal Corporation

Andhra Bank Loan Against Property EMI and Interest Calculator

• The EMI calculator present on the Andhra Bank website can be used to calculate loan EMIs. An EMI is an installment that a customer has to pay each month towards the repayment of the loan.

• The EMI calculator allows to compare the lowest EMI per lakh on the loan amount.

• The loan period is of considerable significance, as a  higher loan tenure reduces the EMI amount.

• Another factor that affects EMIs is the interest rate on the loan. Higher the interest rate; higher will be the EMI. However, the cumulative interest charged will be significantly more in a long tenure loan as compared to a short tenure loan.

• The interest rate comparison of various banks assists the customer in finding the cheapest loan.

How to Apply for Andhra Bank Loan Against Property

For applying online, visit the website of Andhra Bank and fill in the application form. The bank executives will contact you accordingly.

If you aren't comfortable with the online process, visit the nearest Andhra Bank branch and contact the loan against the property department over there.

FAQs

How do I increase my eligibility for Andhra Bank loan against property?

If your spouse or any family member is earning well, then you can make them a co-applicant for your loan. The combination of dual-income will help you in increasing your eligibility.

How does the interest rate on Andhra Bank LAP change in the future?

The floating interest rate on Andhra Bank property loan is linked to its one-year MCLR, which is currently 8.70%. So, when Andhra Bank provides a loan against property at 10.75%, it applies a 2.05% premium to its MCLR to arrive at this rate.

When RBI increases the repo rate, the bank may increase its MCLR rate, and the applicable interest rate for all the existing and new loans would increase. When RBI cuts repo rates, the bank reduces the MCLR rate, and the benefit should ideally be passed on to both the old borrowers and new loan account customers.

What is the maximum loan period that I can opt for under Andhra Bank loan against property?

Andhra Bank provides you a long tenure of 10 years to repay your loan, with the benefit of paying less EMI/month.