Purpose

To meet genuine credit requirement of the borrower for personal purpose

Quantum

• For salaried section – Not exceeding 18 months gross Income.
• For others – Based on the repayment capacity assessed on the basis of income tax returns/ assessment orders.

Eligibility

• Employees/Pensioners receiving salary/ pension at Andhra Bank branch
• Salaried persons, not drawing salary from the Branch, will have to obtain irrevocable letter from their employer undertaking to remit loan instalments to the branch directly till the closure of the loan
• To existing Housing Loan borrowers, who have completed 3 years of satisfactory repayment record in housing loan accounts, can be considered for Mortgage Loan subject to availability of 125% security coverage.
• The loans under this scheme will be sanctioned only to the individual borrowers. Proprietary/ Partnership firms/ Limited companies are not eligible for credit facilities under the scheme.

Age

Between 21 to 60 years
For Individuals above 60 years of age: Jointly with spouse or major children

Quantum of Finance

Maximum 50.00 lakhs

Repayment

Maximum 60 Equated monthly instalments

Co-Obligation

Third party acceptable to the Bank

Security

EMD of House/ Flat property standing in the name of the Applicant/ Borrower/ Spouse/ Major Children. The security coverage of the property should be 200% of the eligible amount.

Other Conditions

• For Employees – Take home pay, after deduction of proposed loan instalment, should not be less than 40% of gross salary. (Obtention of post-dated cheques is not a substitute for salary undertaking letter    to deduct and remit instalments from the employer)
• For others – Post-dated cheques for a minimum period of 22 months.

Miscellaneous

Where charge is with Andhra Bank only ( ie., title deeds lodged with us as security for any other loan):

• ‘Mortgage loan’ will be sanctioned at the branch where the title deeds are lodged as security.
• As noted above the liability in the outstanding loan and proposed loan should not exceed 75% of the value of the security, with a margin of 50%

Margin

50%

Pari Passu charge, Value of security & Margin

Outstanding liability with the institution having charge over the property and the proposed loan should not exceed 75% of the value of the security. However, 50% margin should be maintained