Long Term Loan
Interest Rate
15%
The loan scheme provides financial assistance to Indian nationals, preferably residing within the area of operation of the branch, to avail facilities by mortgaging a fixed asset, usually a house with a clear marketable title. The loan is based on the value of the property, the applicant’s income capacity, and other related factors.
- Primary Security: The property being mortgaged should be free of encumbrances and have a marketable title as per the bank’s opinion.
- Collateral Security: If required, third-party guarantees should be furnished. The bank must be satisfied with the credentials of the guarantor.
- Amount of Loan: The loan amount will depend on the cost of the project and the value of the property proposed for mortgage.
- Margin: Financing up to a maximum of 40% of the market value of the property, as estimated by the bank valuer.
- Rate of Interest: 15% per annum.
- Tenure of Loan: The loan tenure ranges from 60 months to 120 months.
- Contribution to Share Capital: The loan amount requires a 5% contribution as share capital.
- Processing Charges: Minimum processing charges.
- Other Charges: Charges applicable under the Stamp Act and as prescribed by the Government of Andhra Pradesh for mortgage registration. Additional fees may apply for documentation and admission.
- The proponent should be an Indian National, preferably residing in the area of operation of the branch where the facility is to be availed.
- The applicant must be a major (adult) and should have a fixed asset in the form of a house with market value. The property should have been obtained through purchase or valid gift.
- No encumbrances should exist on the property, and the title must be clear and marketable, as verified by the bank.
- The applicant should be able to provide relevant documents concerning the property, including link documents, encumbrance certificate, and rent receipts.
- The applicant’s surplus income, supported by documentary evidence, should be sufficient to repay the equated monthly installments (EMIs).
- The bank has the sole discretion to assess the applicant’s surplus income and determine eligibility.
