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Andhra Bank is a growing public sector bank of India. Andhra Bank home loans offer great financial support throughout the process to provide a loan based on your preference.

Introduction

There are numerous complexities involved in selecting the best home for you. Andhra Bank offers housing loan to its customers who need funds to purchase a house, renovate/extend their existing home where the house on its own serves as a security to the loan.

In this article, we will discuss the important factors of selecting home loans at Andhra Bank.

Interest Rate

Loan Amount Andhra Bank Home Loan Interest Rate Rate for Female Borrower
Upto Rs. 25 Lakh 8.50% 8.45%
Rs. 25 Lakh – 75 Lakh 8.50% 8.45%
Rs. 75 Lakh – 3 Cr 8.60% 8.55%
Above Rs. 3 Cr 8.60% 8.55%

You need to bear in mind to make sure your Bank (lender)  provides auto-adjusted benefits on interest rates that extend into the future. that’s why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process. It is essential to understand the overall cost and breakup of contribution from you and the bank.

 

Features of Andhra Bank

  • Andhra Bank Home Loans are available for both salaried and self employed.
  • Special rates for women customers.
  • Home Loans granted to age group between 21 to 65 years.
  • Security: Generally Mortgage of property you are planning to purchase, renovate or construct.
  • Loan to Value Ratio is 90%.
  • Tenure of loan is between 5 to 30 years.
  • Interest rates range from 8.45% to 8.60%.
  • EMI of Rs. 765 per lakh

So, are you ready to buy a house?

If the answer is YES, you must be having a lot of questions in your mind like:

  • Where will I arrange the money from?
  • Am I eligible for the loan?
  • How much down payment do I have to make?
  • How much EMI will I need to pay every month?
  • How can I compare the EMIs of different banks on my own?
  • Where will I arrange the down payment amount and EMI amount from?

Let’s understand this with a simple example:

Let’s suppose, you have an ancestral home and now you want to renovate and modernize it. This will definitely require a huge amount, let’s assume the amount to be 1 crore. Since you and your family members have an account with Andhra bank, the first thing that will strike you is to go and inquire about the home loan in your personal bank. After having a detailed conversation with the manager at the bank, you get an idea about the different plans offered by Andhra bank.

After visiting the bank and reading other information on different banks, you are totally confused about things like where to take the loan from, EMI, repayment, interest rate and so on.

Don’t panic! For starters, you have a Home loan EMI calculator to solve your required amount, time and rate combination. Secondly, you have ClearTax offering an awesome way to save for your future through ClearTax Save! You can use these  services before you make your initial payments and for the other payments too. You can compare all your saving plans like RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) and others to check which will be more profitable in your case.

Let’s find out the best way to save your money for the down payment and for other expenses, assuming the above scenario:

Loan Value Rs. 1 crore
Time 4 yrs. (48 months)
Down payment 20% of loan value = 20 lakhs

Now, consider different options for saving your money for the next 4 years:

Type of Investment Interest Rate Maturity Amount after 5 Years
Savings Account 3.50% Rs. 21,49,638 (Gains = Rs. 1,49,638 )
Recurring Deposit 6.50% Rs. 22,89,378 (Gains = Rs. 2,89,378)
SIP 14-18% Rs. 2941982 (Gains = Rs. 9,41,982)

Hence from the above table SIP is the most rewarding saving’s scheme; as an SIP, will enable you to invest regularly keeping in mind your long term goal by diversifying  your investment. You will own your dream home sooner than you expected.

Home Loan EMI Calculator, how does it work?

An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).

Follow these steps to calculate your EMI Amount.

  • Use the slider for Selecting Loan Amount
  • Select the Loan tenure in Months using the slider
  • Move the slider and select the Interest Rate
  • Recalculate your EMI anytime by changing the input sliders
  • EMI will be calculated instantly when you move the sliders.

 Parameters to decide Interest Rates:

3 basic criteria on which the loan interest rate largely depends are as follows:

  • Loan amount: Home Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate
  • Your Salary: Higher the salary, lower would be the interest rate
  • Type of loan opted for: Women borrowers have a fair deal now! They can enjoy a lower rate of interest on home loans

It is generally advantageous to take a housing loan as it would enable you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.

Eligibility Criteria

Although Andhra Bank home loan offers lots of flexibility, still there are certain criteria which have to match in order to become eligible for the loan. For example:

  • Salaried, Self- Employed Professional or a Businessman
  • Income
  • Age
  • Qualifications
  • Number of dependents
  • Co-Applicants Income
  • Assets, Liabilities, Stability, and Continuity of Occupation of the borrower
  • Savings History
Interest Rate 8.45% – 8.60%
Age 21 – 65 years
Job Stability in case of Salaried (in years) 2 years
Loan to Value Ratio Up to 90%

Penalties/Other Charges 

In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable.

Let’s discuss some charges in detail:

  • Processing Fee – Andhra Bank charges 0.50% processing fees of the loan amount and a maximum of Rs. 10,000
  • Technical and Legal Charges – Andhra Bank also charges technical and legal fees which differ with time according to the criteria.
  • Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to Andhra Bank and follow RBI rules, which states nil charges on floating rate home loans.

Process of Applying

You can apply for a Yes Bank home loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace 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, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

Documents

Salaried Self Employed Professional
Application form with photograph duly signed Identity, residence and age proof
Identity, residence and age proof Last 6 months bank statements
Last 6 months bank statements Last 3 months Salary-slips
Last 3 months Salary-slips Processing fee cheque
Processing fee cheque Form 16/ Income Tax Returns
Form 16/ Income Tax Returns Education qualification certificate
Proof of business existence
Last 3 years Income Tax Returns with computation of Income
Last 3 years CA Certified/ Audited Balance Sheet and Profit & Loss Account

Andhra Bank Tax Benefits:

Taxpayers availing home loan get some tax benefits. On the one hand, the principal repaid can be claimed under Section 80C up to Rs 1.5 lakhs. Further, the interest component can be claimed as a deduction up to Rs 2 lakhs in case of a self-occupied property and entirely if the property has been let out.

Other Banks offering Home Loans

ICICI Bank Home Loan Kotak Bank Home Loan HDFC Bank Home Loan Axis Bank Home Loan
PNB Bank Home Loan Central Bank of India Home Loan Corporation Bank Home Loan Union Bank Home Loan
IDBI Bank Home Loan Yes Bank Home Loan Bank of India Home Loan CitiBank Home Loan
HSBC Bank Home Loan RBL Bank Home Loan SBI Home Loan Home Loan Tax Benefit

 

 

If you had invested Rs 10,000
every month for last 25 years
in equity funds, you could make

₹ 3.3 Crores
at 15%* annual returns

Invested
Rs 30 Lakhs

Received
Rs 3.3 Crores

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