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Andhra Bank Home Loan Interest Rates 2020

Andhra Bank Housing Loan Interest Rate

Last Updated 11th Sep 2020

Current Andhra Bank Home loan interest rates for Sep 2020 starts at 8.15% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.50%, Maximum ₹ 10,000. Andhra Bank offers a special discount of 0.05% on interest rates for women borrowers.

Loan AmountAndhra Bank Repo Rate Home Loan RateRate for Female Borrower
Upto ₹ 25 Lakh8.20%8.15%
₹ 25 Lakh - ₹ 75 Lakh8.20%8.15%
₹ 75 Lakh - ₹ 3 Cr8.30%8.25%
Above ₹ 3 Cr8.30%8.25%

Andhra Bank has merged into Union Bank of India on April 1, 2020. The interest rates of Union Bank of India will now be applicable on Andhra Bank Home Loan.

Andhra Bank Home Loan Interest Rates

Andhra Bank offers various products on home loan. Andhra Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Andhra Bank Home Loan Interest Rate starts from 8.15%.
  • Andhra Bank charges a processing fees of Upto 0.50%, Maximum ₹ 10,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from Andhra Bank is ₹ 744 per lakh offered at the lowest interest rate of 8.15% at the longest loan tenure of 30 years.
  • Andhra Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Andhra Bank has an average customer rating of 3/5.0 from customers who have taken a home loan from the bank.

Andhra Bank Home Loan Rate

Current Andhra Bank home loan interest rates are in the range of 8.15% to 8.30%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.15%. The table below gives the interest rates on various housing finance schemes of Andhra Bank.

Andhra Bank Home Loan Scheme Interest Rates
Andhra Bank Repo Rate Home Loan8.15% - 8.30%

Andhra Bank Bank Home Loan Charges

Andhra Bank Home Loan Processing Fee

Andhra Bank home loan processing charges are upto 0.50% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges the maximum processing fees at ₹ 10,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Andhra Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Andhra Bank Home Loan Prepayment

Andhra Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Andhra Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Andhra Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Andhra Bank.

Andhra Bank Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Andhra Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Andhra Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Andhra Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.15% to 8.3%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • Andhra Bank Home Loan Interest Rate: 8.15% to 8.30%
  • Processing Fee payable to Andhra Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.50%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 744 for a 30 years ₹ 1 Lakh loan at 8.15% (lowest rate, longest time period) to ₹ 2,042 for a 5 years ₹ 1 Lakh loan at 8.30% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 32,522 for 5 years loan to ₹ 1.78 Lakh for 30 years loan

Andhra Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Andhra Bank.

FAQs

What is Andhra Bank Home Loan interest rate?

Andhra Bank Home Loan interest rate ranges between 8.15% to 8.30%.

Why should I opt for balance transfer to Andhra Bank?

Andhra Bank offers competitive Home Loan rates with the best EMI of ₹ 744 per lakh availed at a low-interest rate of 8.15% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 744 per lakh, you should consider the option for a loan transfer to Andhra Bank from your existing bank. EMIs can be calculated through Andhra Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Andhra Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Andhra Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Andhra Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Andhra Bank housing loan rate of interest change in the future?

  • Andhra Bank offers RBI Repo Rate linked Home Loan which starts at 8.15%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Andhra Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.15% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Andhra Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Andhra Bank Repo Rate linked Home Loan rate will cut from 8.15% to 8%.

What is the current Andhra Bank Home Loan rate?

The current Andhra Bank Home Loan rate starts from 8.15% with a processing fee of Upto 0.50%, Maximum ₹ 10,000

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Andhra Bank Home Loan News - Sep 2020
  • 2019-07-16 : Andhra Bank announces the launch of AI chatbot in Telangana
    Andhra Bank has announced the launch of its artificial intelligence interactive assistance chatbot, ABHi. With ABHi, customers will be able to get the information instantly related to loans including home loans, mortgage loans, digital banking, banking services, senior citizen schemes, fixed deposits, etc. on chat anytime.
  • 2019-06-26 : Andhra Bank approves raising of up to Rs. 2,000 crore in FY19-20
    In a bid to augment its working capital, Andhra Bank has planned to raise equity capital of Rs. 2,000 crore through qualified institutional placement, follow-on public offer, sale of non-core assets, or preferential allotment. The funds raised through these routes would be utilized towards further improving its performance and services related to retail loans and deposits.
  • 2019-05-16 : Andhra Bank revises MCLR rates across loan tenure
    Andhra Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenure for the month of May. The move is supposed to make retail loans like housing loans and mortgage loans cheaper. Now for overnight and one month, the rate stands at 8.20% and 8.25% respectively. For 3 months, the rate has been revised to 8.45%. While for 1 year the rate now stands at 8.75%. The revised rates are effective from May 15, 2019.
  • 2019-04-15 : Andhra Bank revises MCLR rates across all tenure
    Andhra Bank has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenors for the month of April. The move is supposed to make home loans and mortgage loans cheaper. Now for overnight, the MCLR stands at 8.20% while for 3 months, the rate has been revised to 8.45% and for 1 year the rate now stands at 8.75%. The revised rates are effective from April 15, 2019.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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