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Andhra Bank Loan Against Property

Andhra Bank Mortgage Loan Interest Rates

Last Updated 11th Feb 2021

Andhra Bank offers Loan Against Property starting at interest rate of 10.75% which is one of the best mortgage loan rates in India. Check Best Offers

Max Tenure 10 years
Lowest EMI ₹ 1,363 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 21 and Max 65 years for Salaried
Min 21 and Max 65 years for Self Employed

    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 Loan Against Property.

    Apply for Loan Against Property @ 7.20%* Get upto ₹ 1,000* Cashback
    Andhra Bank Floating Rate Loan Against Property LAP
    Andhra Bank Mortgage Loan Interest Rates
    Andhra Bank Loan Against Property Floating 10.75%
    Andhra Bank Loan Against Property Floating
    Loan AmountRate
    Upto ₹ 25 Lakh 10.75%
    ₹ 25 Lakh - ₹ 50 Lakh10.75%
    ₹ 50 Lakh - ₹ 1 Cr10.75%
    Above ₹ 1 Cr 10.75%

    Andhra Bank Loan Against Property Rate

    • Loan amount: Property loan rates in Andhra Bank depends upon the loan amount you apply for. You can get minimum loan of ₹ 5 Lakh from Andhra Bank.
    • Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
    • Type of loan opted for: Andhra Bank offers differential rates for different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
    • Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
    • Your profession: Andhra Bank may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

    Interest Rate and its impact on Andhra Bank Loan Against Property Eligibility

    Andhra Bank has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

    Eligibility Criteria Details
    Age 21 to 65 years
    Loan Amount ₹ 5 Lakh to ₹ 2 Cr
    Minimum Credit Score 650 and above
    Loan to Value Ratio Upto 50%
    FOIR (Fixed Obligations to Income Ratio) 0.65

    • Age: Age is one of the important factors to examine your eligibility. Andhra Bank offers loan to salaried and self employed from the age of 21 years. Any person taking loan at the age of 21, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
    • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
    • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Andhra Bank grants loan to borrowers with a CIBIL score of 650 and above.
    • Loan Amount: Andhra Bank gives you an amount ranging from ₹ 5 Lakh to ₹ 2 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
    • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Andhra Bank will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
    • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Andhra Bank mortgage loan is 0.65.

    Andhra Bank Loan Eligibility Calculator

    Andhra Bank Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

    Andhra Bank Mortgage Loan EMI and Interest Calculator

    You can also use online Andhra Bank Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

    • EMI calculator of Andhra Bank helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
    • Higher the loan amount, higher the EMI. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
    • Loan tenure matters equally as higher loan tenure reduces your EMI.
    • Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility.

    What are the benefits of calculating Andhra Bank Mortgage loan EMI?

    • EMI calculator helps you to calculate your monthly EMI at different rate of interest
    • Andhra Bank Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
    • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
    Other Charges

    In addition to interest rates, property loan also carry some other charges which include:

    • Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Andhra Bank allows prepayment of loan against property with Nil prepayment charges.
    • Processing Fee - Andhra Bank charges a processing fee of NIL.
    • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
    Loan Against Property Top up, Transfer

    Transfer of LAP from another bank to Andhra Bank

    Andhra Bank offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Andhra Bank.

    You can avail additional top-up loan against property from Andhra Bank, subject to your eligibility.

    Andhra Bank Loan against property documents required

    For Self-Employed

    • Filled up loan application form
    • 2 Passport Size Photo
    • ITR of last 0 years
    • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
    • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
    For Salaried employee
    • Filled up loan application form
    • 2 Passport Size Photo
    • ITR of last 0 years
    • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
    • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
    • Registered Sale Deed/ Conveyance/ Lease Deed
    • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
    • Latest House Tax Return/ Receipt
    • Approved Building Plan from Municipal Corporation

    FAQs

    What is Andhra Banks loan against property interest rate?

    Andhra Bank offers loan against property at rate of 10.75% with the lowest EMI of ₹ 1,363. If you are currently paying higher interest rate than Andhra Bank rate, you can opt for balance transfer of loan to Andhra Bank.

    How to increase my eligibility on Andhra Bank Mortgage 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 loan.

    Do I get tax benefit on Loan against property from Andhra Bank?

    There are no tax benefits available for loan against property.

    • Andhra Bank offers RBI Repo Rate linked mortgage loan which starts at 10.75%. 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 6.75% to the Repo Rate to arrive at this rate.
    • When RBI increases rates, the bank may increase its Repo Rate linked property loan rates by the same basis points for all existing and new mortgage loans. When RBI cuts interest rates, the Andhra Bank loan against property interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.

    Can I foreclose my Mortgage loan? What are the charges applicable?

    Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

    What is the maximum loan tenure I can opt under Andhra Bank Property loan?

    Andhra Bank offers maximum tenure of 10 years to repay your loan.

    What is the benchmark rate applicable for Mortgage loan?

    The benchmark rate applicable for property loan in Andhra Bank is RLLR

    Can I transfer my LAP from another bank to Andhra Bank?

    Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Andhra Bank offers you to pay lower EMIs and save money.

    Can I club the income of my spouse with mine and apply for joint Property loan?

    Yes, you can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

    What is Andhra Bank mortgage loan processing fees?

    The loan processing fee charged is NIL.

    What is Andhra Bank property loan procedure?

    You can apply for a Andhra Bank property loan by contacting the bank directly or by approaching them through online marketplaces like MyLoanCare. Approaching the bank through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

    What security do I need to provide?

    Andhra Bank requires registered mortgage of the property against which the bank will provide you loan.

    • Property on which you intend to take loan is not a vacant land, has an approved map plan and is in municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
    • Your total EMIs on all loans and credit cards (from Andhra Bank and other banks) are no more than 60 - 70% of your net monthly income.
    • You have not defaulted on loans or credit card dues to Andhra Bank and other banks and all EMI's have been paid. Note that Andhra Bank can see record or status of your EMI defaults to all banks and NBFC’s in India and not just to Andhra Bank in your CIBIL report. Estimate your CIBIL score for free for free by using CIBIL score estimate calculator
    • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
    • If you are self employed, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available

    Are prepayment or foreclosure charges applicable on Andhra Bank loan against property?

    You can prepay loan against property (LAP) without any penalty or charges in case:

    • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
    • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

    Andhra Bank Loan Against Property News - Apr 2021
    • 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.
    • 2017-11-16 : Andhra Bank withdraws insolvency petition against HDIL
      Andhra Bank has withdrawn the insolvency application against HDIL from the National Company Law Tribunal (NCLT) because of the realty firm decision to settle its outstanding dues. HDIL has reported 64 per cent rise in net profit, reaching Rs 60.87 crore for the second quarter, compared to Rs 37.03 crore in the last year. Profits have risen with tax benefits of Rs 44.5 crore in the second quarter of the current fiscal.
    *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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