The Andhra Bank Home Loan comes in two forms, the usual housing loan and home loans for the NRIs. These home loans can be utilized for a multitude of purposes- 1) The construction or purchase of a house/flat, 2) The purchase of a residential plot wherein a house will be constructed eventually, and 3) For the repairs and/or renovation of an existing house.
Features and Benefits of Andhra Bank Home Loan:
Boasting of an impressive set of features and some truly customer friendly benefits, the home loan offering from Andhra Bank is committed to bringing the very best of housing loans to its customers. This product walks the fine line between a potential customer’s express requirements and specific limitations. Summing up, the features and benefits are listed below-
- Loan is intended for the construction/ purchase of house or flat. Loans are also provided for purchase of plots wherein a residential house will be built at a later date. Also, for repairs and renovation of existing property.
- Maximum loan offered is 90% of the actual cost of construction or outright purchase value of the property. For NRI applicants, the maximum loan amount offered is Rs.2,50,000.
- Repayment tenure extends upto a maximum of 30 years.
- Applicable margin on the loan amount is as follows- 10% (loan amount upto Rs.20 lakhs), 20% (loan amount above Rs.20 lakhs to Rs.75 lakhs), 25% (loan amounts above Rs.75 lakhs).
- Loans taken for repairs and/or renovation follow these guidelines- Maximum loan amount will be Rs.10 lakhs if the property is upto 5 years old. For property above 5 years and upto 25 years, a maximum loan amount of Rs.15 lakhs will be sanctioned.
Who Can Apply for Andhra Bank Housing Loans?
The applicant (as also the property to be purchased/constructed) must qualify against the following requirements to be eligible for a housing loan from Andhra Bank-
- The applicant must not be younger than 21 years or older than 65 years.
- At loan maturity, the applicant’s age must not exceed 75 years.
- Individuals can either apply on their own or in conjunction with their family members.
- The age of the property to be purchased (Eg: independent house-25 years, flat- 20 years etc.) must not exceed a specified age as related by the bank at the point of loan application.
- NRI applicants must have served a minimum of 1 year as part of their employment abroad.
Andhra Bank Home Loan Interest Rate:
The Andhra Bank Home Loan interest rate varying for different loan amounts is as follows:
| Loan Amount | LTV | Minimum Margin | Interest Rates |
|---|---|---|---|
| Up to 30 lakhs | 90.00% | 10.00% | MCLR+0.05 % |
| 30 lakhs to 75 lakhs | 80.00% | 20.00% | MCLR+0.05 % |
| Above 75 lakhs | 75.00% | 25.00% | MCLR+0.25 % |
| Repairs /Modifications | 75.00% | 25.00% | MCLR+1.05 % |
Andhra Bank Home Loan MCLR:
The Base Rate of Andhra Bank for home loans is 9.70%. The MCLR announced by Andhra Bank as on January 3, 2017 are given in the table below.
| Loan Tenor | Existing MCLR Rates | New MCLR Rates |
|---|---|---|
| Overnight | 9.30% | 8.45% |
| 1 month | 9.35% | 8.50% |
| 3 months | 9.40% | 8.55% |
| 6 months | 9.45% | 8.60% |
| 1 year | 9.55% | 8.65% |
Documentation Required for Andhra Home Loan:
At the loan application stage, the applicant is required to submit the following documents as append and proof to substantiate his/her loan request-
- Completed loan application form with necessary attestation and photographs.
- Identity proof of applicant and co-applicants.
- Address proof of applicant and co-applicants.
- Passport sized photographs of applicant and co-applicants.
- Income proof of applicant and co-applicants. These include-
- Pay slips
- Form 16
- Undertaking letter issued by the employer
- Income certificate
- IT Returns
- Financial statements attested by CA (if applicant is a business or self-employed individual)
- Postdated cheques for a minimum of 12 months.
- Bank statements pertaining to the last 6 months that are without any serious red flags.
- Undertaking from the applicant that he/she isn’t contracted to another similar home loan from Andhra Bank or any other bank.
- Associated documents detailing the property to be purchased, constructed or renovated.
- NRI applicant must supply a copy of his/her Passport, VISA, Work permit and Agreement with present employer.