Andhra Bank, now combined with Union Bank of India, provides home loans to people living in India and abroad. The interest rates for these loans are tied to the Repo Linked Lending Rate (RLLR). The final interest rate on a home loan is a combination of the RLLR and an additional percentage that depends on the loan amount and the borrower’s gender. The Andhra Bank home loan interest rate is different for different categories.
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But before getting a home loan, it is important to have an idea about the interest rates, its features, benefits, and the application process. This is where this article helps. It will answer all these questions. So, read it till the end.
Andhra Bank Home Loan Interest Rates
For house loans between ₹30 lahks to ₹75 lahks, the current home loan interest rate of Andhra Bank is 8.15% per year for women and 8.20% per year for others/ For home loans above ₹75 lakhs, the interest rate is 8.20% per year for women and 8.25% for other The bank does not offer different rates for senior citizens and non-resident Indians (NRIs) as well. Having a good credit score is important for getting a home loan. The bank does not state a minimum credit score, but a score of 750 or higher is generally considered good.
Andhra Bank Home Loan Interest Rates for Women and Benefits
Andhra Bank provides special home loan rates for women, offering lower interest rates than other applicants. These rates vary based on CIBIL Score, ensuring customized financial solutions to help women achieve their homeownership goals. Below is a table of interest rates for women:
| CIBIL Score | Interest Rate for Salaried | Interest Rate for Non-Salaried |
| 800 & above | 8.35% | 8.35% |
| 750 to 799 | 8.50% | 8.50% |
| From 700 to 749 | 9.10% | 9.20% |
| 650 to 699 | 9.40% | 9.45% |
| 600 to 649 | 10.25% | 10.25% |
| Below 600 | 10.75% | 10.75% |
The above benefit will be applicable if the house is singly/jointly owned by a female borrower.
Andhra Bank Home Loan Interest Rates for Self-Employed
Andhra Bank offers competitive home loan interest rates tailored for self-employed individuals. The rates vary based on the CIBIL Score, ensuring personalized financial solutions. Below is a table of interest rates for self-employed:
| CIBIL Score | Interest Rate |
| 800 & above | 8.35% |
| 750 to 799 | 8.50% |
| From 700 to 749 | 9.25% |
| 650 to 699 | 9.50% |
| 600 to 649 | 10.25% |
| Below 600 | 10.75% |
Andhra Bank Home Loan Interest Rates for Salaried
Andhra Bank offers competitive home loan interest rates tailored for salaried individuals. Rates vary based on CIBIL Score, ensuring personalized financial solutions. Below is a table of interest rates for salaried:
Read: CUB Home Loan Interest Rate – Updated in April 2024
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| CIBIL Score | Interest Rate |
| 800 & above | 8.35% |
| 750 to 799 | 8.50% |
| From 700 to 749 | 9.15% |
| 650 to 699 | 9.45% |
| 600 to 649 | 10.75% |
| Below 600 | 10.75% |
Feature and Benefits of Andhra Bank Home Loan
Andhra Bank Home Loan offers attractive features and benefits that make the home-buying process easier and more affordable. Some of them are:
Features of Andhra Bank Home Loan
1. Competitive Interest Rates
Many clients find Andhra Bank’s home loans reasonable due to their competitive interest rates.
2. Flexible Tenure
The bank lessens the borrower’s financial load by offering a flexible repayment period of up to 30 years.
3. High Loan Amount
High loan amounts are available from Andhra Bank, according to the borrower’s eligibility and the value of the property.
4. Balance Transfer Facility
Consumers who want to take advantage of superior services or cheaper interest rates can transfer their current house loan from another bank to Andhra Bank.
5. Multiple Repayment Options
Andhra Bank provides a range of repayment alternatives to accommodate diverse customer financial capacities.
6. Online Application
The bank offers its clients the convenience of an online application, which streamlines and expedites the loan application procedure.
Benefits of Andhra Bank Home Loan
1. Affordable Housing
With competitive interest rates and high loan amounts, Andhra Bank makes housing affordable for many. Explore Andhra Bank housing loan interest rates to find the best financial solution for your home ownership dreams.
2. Financial Flexibility
The flexible repayment tenure allows customers to manage their finances better without straining their monthly budget.
3. Savings
The balance transfer facility can result in substantial savings over the loan tenure if the new interest rate is lower.
4. Convenience
The online application procedure saves time and effort, making it more convenient for customers.
5. Tax Benefits
Homeowners may qualify for tax savings on the interest paid on their home loans as outlined in Section 24 of the Income Tax Act. This allows a reduction in their overall tax burden.
6. Enhanced Credit Score
Making timely payments on a home loan can boost the borrower’s credit score. An improved credit score makes it easier to qualify for loans in the future. Staying current on home loan payments demonstrates responsible financial behavior to lenders.
How to Apply for Andhra Bank Home Loan?
To secure a home loan from Andhra Bank, you must follow a few simple steps. The steps are:
Read: 80 Lakh Home Loan EMI With Calculator And Interest Rates 2024
Step 1: Start Online
First, visit the bank’s website and find the home loan section. This is where you can begin the application process.
Step 2: Complete the Application
Next, carefully fill out the online form. Provide your personal and financial details accurately and completely. The bank needs this information to evaluate your eligibility.
Step 3: Provide Documentation
After that, gather the necessary documents. These include identity proof, address proof, age proof, recent bank statements, salary slips, property papers, and building plans. Take clear photos or scans of them. You’ll need to upload these for verification.
Step 4: Submit Your Application
Finally, attach the documents to the online application and submit everything. Union Bank of India will then review your request and documents. They will let you know if you are approved and the next steps.
Andhra Bank Home Loan Eligibility
You must be qualified to obtain a house loan from Andhra Bank. The following are the qualifying requirements:
1. Age Criteria
The age range for the candidate must be between 21 and 65. When the loan is due, the applicant must be older than 75.
2. Income Stability
The candidate needs to be financially secure.
3. Application Process
Candidates may submit a single loan application or a combined one with another candidate.
4. Repayment Capacity
There are fluctuating requirements and no set requirements for Andhra Bank home loans. Several variables come into play, including the borrower’s present income, any outstanding debts, the value of the collateral, and their ability to repay the loan.
Read: Bank Employee Home Loan Benefits and Interest Rates
Document Required of Andhra Bank Home Loan
To secure an Andhra Bank home loan, you need to have certain documents with you. They are:
1. Application Form
A filled-out, signed application with pictures attached.
2. Proof of Identity, Address, and Age
Valid documents to verify your identity, residential address, and age.
3. Salary Slips
Salary slips from the most recent three months.
4. Bank Statements
Your bank statements from the past six months.
5. Property Documents
The property’s title documents or a copy of the approved plan from the respective authority if the loan is for construction.
Andhra Bank Home Loan Comparison With Other Banks
Below is a comparison of the home loan interest rates offered by Andhra Bank and other leading banks:
| SNo. | Bank/ NBFC Name | Interest Rate |
| 1 | Andhra Bank | 8.35% – 10.75% |
| 2 | Aditya Birla Capital | 9% – 12.50% |
| 3 | Bandhan Bank | 8.65% – 13.65% |
| 4 | Bank of Baroda | 8.50% – 10.60% |
| 5 | Bank of India | 7.80% – 9.65% |
| 6 | Bank of Maharashtra | 8.40% – 10.80% |
| 7 | Canara Bank | 8.85%- 11.25% |
| 8 | Central Bank of India | 8.45% – 9.20% |
| 9 | Citibank | 8.45%-14% |
| 10 | Corporation Bank | 8.60% – 11.20% |
| 11 | Dena Bank | 8.40% Onwards |
| 12 | Federal Bank | 10.15% – 10.30% |
| 13 | Fullerton Bank | 9.50% Onwards |
| 14 | HDFC Bank | 8.95% – 9.85% |
| 15 | HSBC | 8.60% Onwards |
| 16 | ICICI Bank | 9.00% – 10.05% |
| 17 | IDBI Bank | 8.75% – 11.45% |
| 18 | IDFC First Bank | 8.85% Onwards |
| 19 | Indian Overseas Bank | 9.55% Onwards |
| 20 | SBI Bank | 9.15% – 11.30% |
Andhra Bank Home Loan EMI Calculator – How to Calculate Andhra Bank Home Loan EMI
The formula to calculate the EMI is:
EMI = (P * r * (1 + r)^n) / ((1 + r)^n – 1)
where:
- P is the principal loan amount,
- n is the loan tenure in months, and
- r is the monthly interest rate
For example, suppose you want to borrow Rs. 50 lakh from Andhra Bank for a home loan at an interest rate of 8.20% p.a. for a tenure of 20 years. Then, the EMI calculation will be as follows:
Read: Cholamandalam Finance Home Loan EMI Calculator
P = Rs. 50,00,000
R = 0.0683 / 12 = 0.00683
N = 20 x 12 = 240
EMI=50,00,000 x 0.00683 x (1+0.00683) / ( 1+0.00683 – 1 )
EMI=3,41,500 x 5.35 /4.35
EMI = Rs. 41,839
Therefore, the EMI for your Andhra Bank Home Loan will be Rs. 41,839 per month.
EMI Calculator
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Factors That Affect the Andhra Bank Home Loan Interest Rate
Several factors affect Andhra Bank’s home loan interest rate. They are:
1. Credit Score
Banks use credit scores to measure a borrower’s creditworthiness. A high credit score, typically above 750, shows that the borrower has a track record of effectively managing credit and making timely loan repayments. This reduces the risk for the bank, leading to a lower interest rate. On the other hand, a low credit score can result in a higher interest rate or even loan rejection.
2. Repo Linked Lending Rate (RLLR)
Andhra Bank’s rate of interest on home loans is closely tied to the Repo Linked Lending Rate (RLLR). This means that the final interest rate on your home loan is a mix of the RLLR and an additional amount. This additional amount is decided based on the size of your loan and your gender.
3. Loan Tenure
The length of the loan also affects the interest rate. Longer tenures mean the bank’s money is tied up for longer, increasing the risk. This can lead to higher interest rates. Shorter loan tenures often have lower interest rates, resulting in higher EMI payments.
4. Income Level
Your income level plays an important role in setting your loan interest rate. As a rule of thumb, the higher the income, the lower the interest rates, primarily because it suggests a reduced likelihood of defaulting. Financial institutions perceive your higher income as a reliable factor, anticipating timely loan repayments.
5. Employment Status
Regular income from a stable job indicates financial stability, which can lead to lower interest rates. Banks often consider factors such as the length of employment and the stability of the borrower’s job. Self-employed individuals or those with unstable jobs may face higher interest rates.
6. Property Value
The property you purchase with the home loan also plays a role. The bank may offer a lower interest rate if the property value is high. This is because, in the event of a default, the bank can recover its money by selling the property. However, properties with low values or in less desirable locations may attract higher interest rates.
Tips to Avail Andhra Bank Home Loan at Lower Interest
Here are some tips to avail of Andhra Bank Home Loan at lower interest:
1. Maintain a High Credit Score
To convince banks that you are a trustworthy financial partner, it is crucial to have a high credit score. This may enable you to obtain a reduced interest rate. You may improve your score by lowering your debt, making on-time bill payments, and reviewing your credit report.
2. Stable Income Source
Banks prefer borrowers with a steady income. If your business or job provides consistent earnings, this may help you qualify for cheaper rates.
3. Down Payment
Making a larger down payment can reduce the amount you need to borrow. This smaller loan could lead to a lower interest rate. Also, banks see less risk when you put more money down upfront. So a bigger down payment makes them more likely to offer you a better rate.
4. Negotiate
Don’t hesitate to negotiate the interest rate with the bank. Suppose you have a good relationship with the bank or a solid financial profile. In that case, you may be able to secure a lower rate.
5. Loan Tenure
Choosing a shorter loan tenure can result in a lower interest rate. While your EMI might be higher, you’ll save on the total interest paid over the loan period.
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Understanding the Andhra Bank house loan interest rates is crucial in making informed decisions about your home financing. You can secure the best possible deal for your dream home by staying updated on the latest rates and terms. Furthermore, to have a hassle-free home loan experience then consider NoBroker.
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Frequently Asked Questions
1. What is the maximum loan tenure for an Andhra Bank Home Loan?
The most extended period you can take out a home loan with Andhra Bank is 30 years.
2. Can I apply for an Andhra Bank Home Loan as an NRI?
If you are a Non-Resident Indian (NRI), you can apply for a home loan with Andhra Bank.
3. What are the details required to use the Andhra Bank EMI calculator to get the EMI amount?
You must input your loan amount, interest rate, and tenure to use the EMI calculator. Verifying the most recent interest rates with your lender before calculating your Equated Monthly Instalment (EMI) is essential.
4. Can I apply online for an Andhra Bank home loan?
Yes, you can apply for a home loan from Andhra Bank online.
5. What is the starting interest rate value on the Andhra Bank home loan?
The starting interest rate value on the Andhra Bank home loan is 8.60%.
