"Andhra Bank" was founded by the eminent freedom fighter and a multifaceted genius, Dr.Bhogaraju Pattabhi Sitaramayya. The Bank was registered on 20th November 1923 and commenced business on 28th November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs.

Out of many Nationalised Bank in India Andhra Bank is also providing very suitable housing loan schemes. The bank offers home loans called 'AB Housing Loans' to both Indians as well as NRIs, permitting repayment till the age of 65 years. It provides 75% of cost of construction, or 80% of estimated cost (for outright purchase or 85% if sanctioned by Zonal Office for outright purchase as a home loan. It also offers the option of balance transfer.

Eligibility :-

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.

Rate of Interest :-

Float Interest Rate	:	9.75 %
Tenure	:	20
Processing Fee	:	NIL
Documentation Charges	:	NA

PRE-Payment Charges :

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

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 :

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 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.

FAQ's :

  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.

  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.

  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.

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.