Andhra Bank offers Loan against Property/ Mortgage Loan for any kind of personal, professional or business needs and purposes including repairs/ renovation of home, wedding, education of children, foreign trip, medical emergency, purchase of asset, working capital need for business, business expansion, etc. Andhra Bank provides customised Loan against Property solutions, best-in-class services and simplified loan process. It offers competitive, attractive and affordable interest rates on Loan against Property/ Mortgage Loan.
Andhra Bank Loan Against Property Interest Rates
| Parameters | Details |
|---|
| Interest Rate | 10.75% |
| Max. Age of Applicant | 65 years |
| Minimum Income | Rs. 25,000 and above |
| Max. Loan Amount | 20000000 |
| Max. Loan Tenure | 15 Years |
| Work Experience | 3 Years and above |
| Credit Score | 650 and above |
| Security | Equitable mortgage of the property in question |
Why Andhra Bank Loan against Property?
- Andhra Bank provides Loan against Property at an attractive interest rate for different needs of customers
- Interest is calculated on a daily reducing basis
- It has PAN India branch network provides easy access to the customers
- Quick & Hassle-free processing
- Easy and fast approval & disbursal of Loan against Property
- It provides Flexible Repayment Options to the borrowers
- Has dedicated team of well-experienced employees
- Transparent process with no hidden charges
- Offers loan upto 70% of property value
Andhra Bank Mortgage Loan Fees & Charges
| Type of Charge | Amount |
|---|
| Processing Fees | 1% (Min Rs. 1,000 - Max Rs. 1,00,000) |
| Part prepayment Charges | Part prepayment can be done after 6 months from date of first disbursement. One payment allowed every financial year. Can be upto 5% of outstanding loan. |
| Foreclosure Charges | Nil |
| Stamp Duty (Facility documentation & Property) plus Registration | As per actual |
| Legal, repossession and incidental Charges | As per actual |
| Insurance Premium | As per actual |
| Creation of charge with ROC | As per actual |
| Customer Credit Information Report (Credit Bureau) | May be Rs. 200 per report individual customers & Rs.750 per report for non-individual customers |
| Facility cancellation charges | May be upto Rs. 2000 plus GST plus interest charges from disbursement date upto cancellation request |
| EMI cycle change | Upto Rs. 500 plus GST |
| NOC Issuance Charges | Upto Rs. 500 plus GST (Nil for first NOC) |
| Cheque bounce Charges | Upto Rs. 500 plus GST |
| Late payment Charges | Upto 3% per month |
| Cheque swap Charges | Upto Rs. 500 plus GST |
Andhra Bank Mortgage Loan Eligibility
- Age: Age of the applicant should be 21 to 65 years while applying for Loan against Property.
- Minimum Income: Loan against Property is generally availed by salaried and self employed individuals to meet their personal and business requirements. Consistent income of the borrower plays a vital role in deciding borrower's eligibility for the loan. Minimum income of the borrower should be atleast Rs. 0 to avail Andhra Bank Loan against Property.
- Minimum Work/ Job/ Business experience & Stability: Lenders are always watchful for how long you are in your current assignment/ job/ business. For applying for Andhra Bank Loan against Property, you must have work experience of atleast 0 Years with a regular income.
- Credit Score: Credit score shows the capability of loan repayment. Credit score ranges between 300 and 900. If you carry a decent credit score then you will get LAP comfortably with minimal documentation. You should carry good credit score i.e. 650 or above to avail Andhra Bank Loan against Property.
- Property Value: Property value is a significant factor in determining your eligibility for LAP. In your loan eligibility process location and type of property matter significantly. Whether the property is located in metro, urban or rural area and whether it is residential, commercial or industrial property, all these points are considered by the lender in detail. Hence, you should be very careful about deciding about which property to be mortgaged for getting LAP.
Andhra Bank Mortgage Loan Documents Required
| Point | Salaried Customers | Self Employed Professionals | Self Employed Businessman |
|---|
| Form | Application form with photograph | Application form with photograph | Application form with photograph |
| Processing fee cheque | Processing fee cheque | Processing fee cheque | Processing fee cheque |
| Proof of Identity | Voter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID card | Voter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID card | Voter ID card/ Driving license/ PAN card/ Photo credit card/ Employee ID card/ Defence or Police or Government department ID card |
| Proof of Residence | Bank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing address | Bank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing address | Bank account statement/ Latest electricity bill/ Latest mobile/telephone bill/ Latest credit card statement/ Latest LIC policy/insurance premium receipt/ Employers letter certifying the current mailing address |
| Proof of Income | Form 16 | Last 3 years Income Tax returns (self and business) & Last 3 years Profit /Loss and Balance Sheet | Business profile, Last 3 years Profit /Loss and Balance Sheet & Last 3 years Income Tax returns (self and business) |
| Bank Statement | Last 6 months bank statements | Last 6 months bank statements | Last 6 months bank statements (self and business) |
| Guarantor form | Optional, varies from lender to lender | Optional, varies from lender to lender | Optional, varies from lender to lender |
Andhra Bank Mortgage Loan Interest Rate
Interest rate is the major cost of your loan which you need to pay on your outstanding loan amount till the end of your loan tenure. It is very important to compare interest rates on LAP offered by all the available banks before selecting the bank from which you want to opt for LAP.
Andhra Bank offers Mortgage loan at the interest rate of 10.75% which is quite attractive. You are free to negotiate on interest rate provided you are carrying good Credit Score, Healthy Repayment History and Regular Income. Once you avail LAP, you need to repay the loan alongwith interest in the form of Equated Monthly Instalment (EMI) every month till the tenure of the loan. The EMI comprises of the principal and interest components.
If you are currently paying higher interest rate on LAP availed from any other bank than interest rate on LAP offered by Andhra Bank, you can opt for balance transfer of loan to Andhra Bank.
Andhra Bank Mortgage Loan Amount
The decision of the loan amount what you want to apply for depends upon your requirement of funds, your income and repayment capability.
Andhra Bank Loan against Property loan amount ranges from a minimum of Rs. 500000 to a maximum of Rs. 20000000.
It is not necessary that whatever loan amount your are applying for is easily extended to you by the bank. Bank will first calculate your eligibility for taking that loan amount during its loan approval process and then only decide upon the loan amount as per your eligibility and will offer you.
Andhra Bank Mortgage Loan Tenure
Loan Tenure is a period for which you have availed the loan. You need to repay full loan and interest thereon during this period. Loan tenure also depends upon your age. Lower your age, higher loan tenure you can apply for .
Higher the tenure, lower the EMI and vice-versa. Andhra Bank offers Loan against Property for a maximum tenure of 15 Years.
Other Important Points related to Andhra Bank Loan against Property/Mortgage
- Eligibility
- Salaried Individuals, pensioners and Professionals and Self Employed. Individuals engaged in Agriculture and Allied activities and others, who are having income tax returns for at least Two years.
- Non Resident Indians (NRIs) having a regular job abroad in a Indian / foreign company, organization or government department
- Partnership firms, limited companies and LLPs are also eligible for finance under this scheme. The entity should be making cash profit for the last Two years
- Trusts/ Societies will not be eligible to avail loan under the scheme
- Nature of Facility
- Term Loan/ Overdraft
- Quantum of Finance
- Salaried Class & Pensioners: 60 times of Gross Monthly income
- Other Individuals (like Professionals and Self Employed and Individuals engaged in Agriculture and Allied activities): 5 times ofAverage (last two years) annual income
- Other than Individuals (Partnership firms, limited companies, LLPs): 3 times of average cash profit as per audited balance sheet. In case of unaudited firms 3 times of average income
- Security
- The property should be non-agricultural. The property may be residential / commercial / Industrial Building/plot
- The age of the building should not be more than 25 years and the remaining life of the building should be more than 15 years. The property to be mortgaged should be free from all encumbrances
7 Things to Know Before Applying for Mortgage Loan/ Loan Against Property (LAP)
(1) Do you really require funds?
You must ensure as to do you really require funds through LAP or it can be managed with savings or other investments made by you in pace of taking Loan Against Property (LAP).
(2) No Tax Benefit
Unlike Home Loan, no tax benefit is allowed under Loan Against Property (LAP). Under Home Loan, you get tax benefit in repayment of principal as well as interest thereon.
(3) Do proper homework to select best lender
You need to do proper research in finding out the best lender from which you should opt for Mortgage Loan/ Loan Against Property (LAP). You can do so by comparing various lenders offering LAP on the basis of major components such as interest rate, loan amount offered, terms of loan, service, etc. It is very important thing to select the best lender before applying for LAP.
(4) Go through the Loan Agreement Carefully
You should read the loan agreement very carefully as all the terms of loan are mentioned in the loan agreement and in case of any dispute, this loan agreement is referred to by the lender.
(5) Be ready with all the Documents Required
Before applying for LAP, you must keep all the required documents ready with you which are needed for availing LAP. In absence of any of such documents, lender may decline extending loan to you.
(6) Check your Credit Score First
You should check your credit score beforehand. Applicants with good credit score have more chances of their loan approval in faster manner. Good credit score (more than 750) will enable you negotiate with the lender on various terms of loan such as interest rate, loan amount, processing fee, other charges, etc.
(7) Loan Eligibility Matters a lot
Have you checked your loan eligibility before applying for the LAP? There are tools like "Check Loan Eligibility", "Loan Eligibility Calculator", etc. available on lender's website through which you can check your loan eligibility.
Mortgage/ Loan against Property EMI Calculator