AU Small Finance Bank Home Loan

AU Small Finance Bank Home Loan

AU Small Finance Bank home loan comes with seven different types of loans that match your specific needs. The bank provides loan amounts from Rs. 50,000 to Rs. 2 crore with interest rates between 11% to 22% per annum. You can choose a financing option that fits your requirements perfectly.

AU Small Finance Bank’s journey began in 2017, and it has made home ownership available to people across rural and urban India. Quick loan disbursals, minimal documentation, and doorstep services make this bank stand out from others. The bank’s loans also offer tax benefits under Sections 24, 80EE, and 80C of the Income Tax Act.

This detailed piece walks you through AU Small Finance Bank’s home loan interest rates, loan types, fees, charges, eligibility criteria, and documentation requirements. These insights will help you make a smart decision about your home loan.

AU Small Finance Bank Home Loan Interest Rates

AU Small Finance Bank has home loan interest rates that change based on who you are and what you need. You’ll find their rates flexible enough to work with different borrowing needs and financial situations.

The bank’s home loan interest rates usually run between 11% and 22% per year. These rates work the same way for people who are hired and those who run their own business. Your rate depends on several things – your credit score matters a lot, along with what you do for work, how much you earn, and how your EMI fits with your income.

On top of that, the bank’s floating rate loans come with lower rates than fixed-rate ones. You might want to pick floating rates if you think rates will drop in the future. The bank’s balance transfer option is a great way to get better rates if your current home loan feels too expensive.

A good credit score will help you get better interest rates. Lenders love to see high credit scores because it shows them you’re reliable, and that’s why they’ll give you better rates. The bank will give a clear view of rates without any hidden costs in the structure.

Types of AU Small Finance Bank Home Loan

AU Small Finance Bank offers seven different home loan products that meet specific financial needs. You can use these loans to buy ready-made properties or build new homes with flexible terms and competitive features.

Here’s a complete overview of the available loan types:

The Home Purchase Loan lets you buy new or resale properties, including flats, houses, and bungalows from builders and developmental authorities. The Home Construction Loan can finance up to 100% of your estimated construction cost, making your dream home a reality.

Homeowners can use the Home Improvement Loan to cover all their renovation project costs. The Balance Transfer option helps you reduce your loan burden with lower EMIs and better interest rates.

The Top-up Loan needs minimal documentation and works for both new and existing customers. The Land Purchase & Construction Loan comes with expert financial counseling and door-to-door service to help you buy land and build your home.

Business owners can get the Commercial Property Purchase Loan through 400+ branches. This loan has a simple application process and needs minimal paperwork.

Compare Interest Rates on Housing Loans for Top Banks and /HFCs

Your home loan decision needs a good look at interest rates from lenders of all types. The rates show big differences that will affect your monthly payments for years to come.

Here’s a detailed look at home loan interest rates from major banks and housing finance companies:

The bank’s balance transfer option starts at 8% per annum if you have a salary or run your own business. You can lower your monthly payments with better service and competitive rates this way. Processing fees range from 0.35% to 1% among lenders. Think over these costs before you make your final choice.

AU Small Finance Bank Home Loans Fees & Charges

AU Small Finance Bank’s home loan fee structure knowledge helps you manage your finances better. The bank follows a clear fee policy that outlines charges for services of all types.

You need to pay a processing fee between 1.50% and 2% of the loan amount. Legal documentation requires Rs. 1,100 as courier charges. The property legal charges differ by location. Delhi and Mumbai residents pay Rs. 5,500 per legal report, while other states charge Rs. 3,500.

Let’s look at everything in the fee structure:

The prepayment charges depend on your timing. The bank charges 5% if you prepay within six months of disbursement. This amount drops to 3% after 12 months. You can prepay up to 25% of your loan amount in a financial year without any charges.

EMI default penalties cost Rs. 0.65 daily per Rs. 1,000 of overdue amount. The bank charges 1% of the outstanding principal if you change your loan structure or switch between fixed and floating rates.

Property document changes come with a Rs. 500 fee plus applicable interest differences. You’ll pay Rs. 500 for foreclosure statements and duplicate no-dues certificates.

Eligibility and Documentation Requirements

You need to meet specific eligibility criteria to qualify for an AU Small Finance Bank home loan. The bank has clear requirements that help process and approve loans smoothly.

Indian citizens aged 18 to 70 can apply for these home loans. The maximum age at loan maturity depends on your employment – 70 years for regular applicants and 75 years for home purchase loans.

Here’s a detailed list of documents you’ll need:

Salaried professionals need to submit their last three months’ salary slips and 12 months of bank statements. Self-employed applicants must provide additional documents:

• GST registration copy
• MSME registration details
• Last 12 months’ GST returns
• Debt sheet documentation

Bank-salaried employees can choose loan terms from 1 to 30 years, while cash-salaried and self-employed individuals get up to 20 years. The minimum loan amount starts at Rs. 2 lakhs.

The bank reviews your creditworthiness through credit score checks and income assessment during the application process. A good credit score and stable employment history will improve your chances of getting the loan approved.