Andhra Bank

ELIGIBILITY CRITERIA
General

• Age 18 to 65 years.
• Repayment maximum 20 years.
• 75% of cost of construction OR 85% of estimated cost for outright purchase as
loan
• No guarantee / co obligation.
• Income tax benefit for payment of both Principle and Interest as per I.T.Rules

Salaried Persons

• Maximum 48 times monthly gross income

• Latest salary certificate
• Certificate from the employer regarding leftover service
• Estimates and other related approved documents
• 30% take home pay.

Housing Loans for Business & Self-employed persons

• 4 times the gross annual income

• Income Tax Returns
• Auditor Certificate
• Estimates and other related approved documents

Rate of Interest for Loans Sanctioned w.e.f., 01.07.2008

For Limits in Priority Sector :

1) Limits below Rs.20.00 lacs Housing Loans

2) For Repairs in Rural and Semi Urban Area up to Rs.1.00 lac

3) For Repairs in Urban and Metro Area up to Rs.2.00 lac

REPAYMENT PERIOD Interest Rates

Floating only
Up to and inclusive of 5 years 10.50 (BMPLR-2.75)
Above 5 & up to and inclusive of 10 years 10.75 (BMPLR-2.50)
Above 10 years (Max. 20 years) 11.00 (BMPLR-2.25)
For Limits in Non Priority Sector i.e., above Rs.20.00 lacs

REPAYMENT PERIOD Interest Rates

Floating only
Up to and inclusive of 5 years 11.25 (BMPLR-2.00)
Above 5 & up to and inclusive of 10 years 11.50 (BMPLR-1.75)
Above 10 years (Max. 20 years) 11.75 (BMPLR-1.50)
NOTE: Fixed rate of Interest is dispensed for sanction after 01.04.2006

PRE-PAYMENT CHARGES:

Pre-payment charges are to be levied in case of premature closure of term loan by

theborrower in cases where the term loan is closed either from his own sources of funds
or by way of takeover by other Banks.
The Prepayment charges of 2.00% flat on the prepaid amount are applicable for all Term
loans including loans sanctioned under Personal Banking Schemes, Housing loans, Term
loans against Rent Receivables and Rural godowns where the repayment period is fixed
beyond 36 months.

Administrative Charges
Housing Loans:
PROCESSING CHARGES Will be ADMINISTRATIVE CHARGES
collected at the time of processing of Per annumPer
Per quarter per a/c.
application account
Up to Rs.10.. lacs: 0.50% of loan amount Rs.100/- Rs.400/-
Above Rs.10 lacs & subject to Maximum
Rs.150/- Rs. 600/-
upto Rs.15 lacs of
Above Rs.15 lacs : Rs.10,000/- Rs.250/- Rs. 1000/-
The 'administrative charges' will be collected on quarterly basis
We "take over" your high cost loans at our low cost rates.
Housing Loans to Non-Resident Indians (NRIs) Housing Loan to a Non-Resident
Indian or a person of Indian Origin resident outside India, for acquisition of a residential
accommodation in India, subject to the following conditions, namely:

• The quantum of loan, margin money and the period of repayment shall be at par
with those applicable to housing finance provided to a person in India;
 • The loan shall be fully secured by equitable mortgage of the property proposed to
be acquired, and if necessary, also by lien on the borrower's other assets in India;

• The installment of loan, interest and other charges, if any, shall be paid by the
borrower by remittances from outside India through normal banking channels or
out of funds in his Non-resident External (NRE) / Foreign Currency Non-resident
(FCNR) Non-resident Ordinary (NRO) account in India, or out of rental income
derived from renting out the property acquired by utilization of the loan;

• The rate of interest on the loan shall conform to the directives issued by Reserve
Bank of India or, as the case may be, by the National Housing Bank.

DEFINITIONS: Who is a Non Resident Indian? An Indian Citizen residing in other

Countries is called a Non-resident Indian (NRI). Who is a Person of Indian Origin? A
person (not being a citizen of Pakistan or Bangladesh) shall be deemed to be of "Indian
Origin" if

• He, at any time, held Indian Passport; or

• He or either his parents or any of his grandparents was a citizen of India by virtue
of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
• That person is the spouse of an Indian Citizen or of a person of Indian Origin (not
being a citizen of Pakistan, or Bangladesh)

Permission of Reserve Bank of India for purchase of immovable property:

As Far as Foreign Citizens of Indian Origin, Reserve Bank of India has granted general
permission, Whether resident in India or abroad, to purchase immovable property in India
for their bonfideResidential purpose. They are, therefore, not required to obtain
permission of the Reserve Bank of India.

However, a declaration is to be submitted to The Chief General Manager, Exchange

Control Department, (Foreign Investment Division-III), Reserve Bank of India, Central
Office, and Mumbai-400 001 within 90 days from the date of acquisition of the
immovable property.

PROHIBITIONS:

No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China,
Nepal or Bhutan without prior permission of the Reserve Bank of India shall acquire or
transfer immovable property in India, other than lease, not exceeding five years.

Other Clarifications:

1. Can authorized dealer grant housing loan to non-residents where he is a

principle borrower with his resident close relative as co-obligant/guarantor
or where the land is owned jointly by such NRI borrower with his resident
 close relative?

Yes. However, in such cases the payment of margin money and repayment of the
loan installments should be made by the NRI borrower. As informed supra the
payment should be by remittances from outside India through normal channels or
out of funds in his Non-Resident External (NRE)Foreign Currency non-resident
(FCNR)/ account in India or out of rental income derived from renting out the
property acquired by utilization of the loan.

2. Can the residential properties be given on rent if not required for immediate
use?

Yes. Reserve Bank of India has granted general permission for letting out any
immovable property in India. As noted above, the rental income derived from
renting out the property acquired by utilization of the loan.

3. What is the rate of interest to be charged to the Housing Loans extended to

the NRIs?

The rate of interest to be charged to the loans allowed to Non-resident Indians is

same as that of resident Indians, being communicated time to time.

Practically, there are no restrictions for granting loans to Non-Resident Indians

and Foreign Citizens of Indian Origin, and the loans granted to them are no
different from the housing loans granted for resident Indians.