Andhra Bank was founded in 1923 in Andhra Pradesh. It is a public sector bank that is medium sized with more than 00 branches across India. Andhra Bank has established itself in 25 Indian states and 3 minor union territories. Andhra Banks laid the groundwork for the current credit card boom in India by introducing the first credit cards in India in 1981.
About Andhra Bank Personal Loan
Andhra Bank offers a huge array of loans that are tailor-made to cater to the different kinds of loan necessities across India.
Andhra Bank Personal Loan is divided into two main categories, namely, Consumer Loans and Clean Loans. Consumer Loans refer to personal loansgiven out to salaried individuals whereas Clean Loans refer to the Andhra Bank personal loans given out to self-employed individuals.
Consumer Loans
This personal loan scheme caters to the consumer credit requirements of persons with a regular source of income. They are usually offered for a salaried individual’s personal needs such as purchasing consumer durables like televisions, white goods and other household equipment.
Clean Loans
lean Loan is one of the schemes of Andhra Bank personal loans which is granted to self-employed individuals. It is aimed at meeting the credit requirements of the borrower in order to fulfil his/her personal responsibilities such as a children’s education and weddings, paying off credit card debts, vacations etc.
Why choose Andhra Bank Personal Loans
There are numerous reasons why Andhra Bank personal loans are the perfect solution to all loan takers’ problems. Here’s a list of a few of those reasons-
- Any creditworthy third party with a regular source of income can act as a co-obligation entity.
- In case of pensioners, a nominee or family pensioner can act as the co-obligation entity.
- If the borrower is an LIC agent then his/her spouse or family member and one other LIC agent can act as the co-obligation.
- Articles purchased are hypothecated to Andhra Bank.
- Collateral security includes assigning of a life insurance policy with an equal amount of surrender value as well as pledges of NSCs, shares, units etc. that have an adequate value.
Features of Andhra Bank personal loan
- The Andhra Bank personal loan options are diverse in order to cater to the different salary classes, hence making the repayment convenient to the loan taker
- Andhra Bank personal loan does not limit the borrower’s options of spending the money that is given as the personal loan
- Minimalistic paperwork makes the Andhra Bank Personal Loan a hot favourite amongst individuals seeking personal loans
- Debt consolidation and fulfilling pressing financial duties is made quick and easy with the Andhra Bank personal loan options
Andhra Bank Personal Loan Interest Rate
Andhra Bank offers extremely attractive interest rates for personal loans. The Andhra Bank personal loan interest rates are primarily governed by the nature of the borrower’s income. Salaried borrowers are charged interest rates in between 15.75% to 16%. Self-employed persons are charged a nominal interest rate of 13%.
Andhra Bank’s personal loan is most beneficial to self-employed individuals as they are lower than the rates of interest charged to salaried persons by almost 3%. Most banks tend to charge self-employed persons a higher rate of interest than the salaried employees given the risky nature of the self-employed borrower class. The competitive Andhra Bank personal loan interest rates make Andhra Bank a lucrative option for personal loan needs of both salaried individuals as well as self-employed persons.
Loans become more affordable by opting for longer EMI tenures. It has been seen that individuals opt for longer tenures in order to avail more economical EMI instalments.
Though it must be kept in mind that interest rates are subject to change according to market rates. The downward movement of the interest rates that is expected in the next fiscal year bodes well for loan takers.
Andhra Bank Personal Loan Eligibility
Andhra Bank personal loans are offered to individuals who fulfil the following requirements-
- Individuals that possess the capacity to repay the loan
- Individuals who have a regular source of income
- Individuals who are salaried employees
- Pensioners who draw their pension from one of the Andhra Bank branches
Andhra Bank Personal Loan FAQs
I am a salaried employee of one of India’s leading MNC, looking for a personal loan. What is the maximum amount that I can borrow?
Salaried employees are offered an Andhra Bank personal loan under the category of Consumer Loans. Following are the terms and conditions for the maximum borrowing amount allowed -
Salaried Classes
Fresh Finance
In these cases borrowers apply for an Andhra Bank personal loan for the first time.
A Fresh Finance is divided into two categories.- Salary routed through Andhra Bank
- Salary routed through other banks
| Salary route | Maximum Principal Loan Amount Allowed |
| Andhra Bank | 8 months gross salary or Rs.1,00,000. Whichever is lesser |
| Other Banks | 10 months gross salary or Rs.1,00,000. Whichever is lesser |
Repeat finance is the case in which the loan applicant has borrowed before. In case of repeat finance, the maximum amount that can be availed through an Andhra Bank personal loan scheme is, 10 times the gross monthly salary of the loan applicant. This amount is subject to two precursory conditions -
- The maximum loan amount is of Rs.1,50,000
- The applicant’s take-home pay should not be less than 40%
*Net salary is the salary which is left after deducting tax and National Insurance contributions *Take Home pay is the amount of net salary that the applicant takes home after deducting the payment instalment for the proposed loan
I would like to expand my existing self-owned business. What is the maximum principal loan amount that I can expect Andhra Bank to sanction?
Maximum loan granted to non-salaried individuals or individuals that are self-employed is 40% of the gross annual income or Rs.10,00,000, whichever is lesser.
I am a pensioner, what is the maximum amount that I can borrow under the personal loan scheme?
Andhra Bank personal loan scheme grants pensioners with the maximum loan amount as- 4 months of pension amount or 75% cost of the article, whichever is lesser.
I have applied for a personal loan. How many days will it take to process my loan?
Andhra Bank personal loan is processed in 4 days.
I am thinking of applying for an Andhra Bank personal loan. What is the maximum length of a loan tenure?
Andhra Bank personal loans are offered for a minimum tenure of 12 months and a maximum tenure of 60 months.
Where can I apply for a personal loan?
You can avail an Andhra Bank personal loan from any of the Andhra Bank branches across India. You can also apply for a personal loan at any of the specialised retail credit branches around India.
My spouse and I would like to apply for a personal loan. Is that possible?
Yes, you and your spouse can apply for an Andhra Bank personal loan jointly. In fact, your spouse’s income can also be added to yours for eligibility purposes.
I am looking for a personal loan, what security do I need to provide in order to avail one?
In order to avail an Andhra Bank personal loan, you do not have to put up any kind of security.
How do I calculate my EMI?
EMIs can be easily calculated using the EMI calculator located on the BankBazaaar homepage by inserting your principal loan amount, the tenure of your loan, the interest rate you are being charged and any processing fee that is applicable.
What kind of additional charges will I be faced with when I apply for a personal loan?
Andhra Bank charges a nominal sum as processing fee at the time of application of a personal loan. At the end of every quarter, administrative charges are collected.
Where can I pay my personal loan EMIs?
You can repay your personal loan EMIs at any of the branches of Andhra bank. Alternatively, you can also instruct Andhra Bank to deduct the EMI amount from your savings account on a monthly basis.
I would like to pay my monthly instalments in advance. Can I do so?
Yes, it is possible to pay your monthly instalments in advance. It is beneficial to do so as the interest component gets reduced depending on the extent of the amount repaid.
I would like to close my loan account before the stipulated tenure. Will this result in any charges being levied?
No, there are no extra charges levied in the event of pre-closure of loan accounts as long as all outstanding dues are cleared.
What is the nature of the interest charged?
The Andhra Bank Personal Loan interest rate is charged based on Andhra Bank’s Base Rate which is subject to periodical updates. Floating interest is charged on Andhra Bank personal loans.
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