Andhra Bank has two personal loan schemes which are designed to cater to multiple financial needs of customers. The bank offers Consumer Loans and Clean Loans under its personal loans program, ensuring that all monetary requirements of a customer are met. A simple, hassle-free process and competitive rate of interest make their personal loan scheme extremely viable.
Andhra Bank Personal Loan Eligibility
The eligibility criteria for Andhra Bank personal loan are mentioned below.
For salaried individuals
- Regular source of income – Applicants should have a regular source of income.
- Take home income – The take home income of the applicant should be such that it is more than 40% of gross salary after all deductions, including EMIs.
- Income – Self-employed or non-salaried applicants should have a history of earning money and are required to prove it through IT returns.
- Regular pension – Applicants should have a regular source of pension from a reliable organisation.
- Maximum age – Applicants should be less than 75 years old.
Factors affecting Andhra Bank Personal Loan Eligibility
There are a few factors which can affect the eligibility of an applicant when it comes to obtaining a personal loan from Andhra Bank, some of which are mentioned below.
- Income –Income plays a crucial role in loan applications, and individuals with high income have a better chance of getting their loan approved. A healthy income instils confidence in the repayment capacity of the applicant.
- Age – Youngsters might find it hard to obtain loans as they are viewed as carefree, with less financial obligations. Experienced applicants are likely to get a favourable response, as banks consider them stable and settled. Individuals approaching their retirement age can be viewed as risky prospects as they might not have a steady source of income to repay the loan post retirement.
- City of Residence – It is easier for applicants from big cities to get their loan approved compared to applicants from smaller towns and villages.
- Type of Employment – Permanent employees with a steady source of income are likely to get their loan sanctioned faster than probationary or temporary employees as probationary employees have no job guarantee and are viewed as risky propositions.
- History of company – Banks are cautious about new companies or those embroiled in controversies, as employees of these companies might not get their salaries on time. Employees from government organisations and reputed firms are likely to get their loan application approved faster compared to others.
How CIBIL score affects your Andhra Bank Personal Loan Eligibility
Andhra Bank relies on the CIBIL score of an applicant to determine his/her credit rating and previous credit history. A good CIBIL score is an indicator of good financial thinking and could see the application being fast-tracked. Applicants with scores over 800 are likely to get the loan sanctioned without hassles, whereas applicants with CIBIL scores below 600 will be rejected by the bank in almost all cases.
Individuals with average CIBIL scores might be considered for a loan, but their approval or rejection would depend on other factors as well. A healthy CIBIL score reflects the loan repayment capacity of an applicant, which is what most banks look for in loan applicants.
How to Increase Andhra Bank Personal Loan Eligibility
Following a few simple steps could increase an individual’s eligibility for a personal loan from Andhra Bank.
- Timely payment – Timely payment of EMIs and credit card bills will improve the CIBIL score, thus increasing the eligibility to get an andhra bank personal loan.
- Choosing longer tenure – A longer tenure implies that there would be lower EMIs, which can be deducted from the income without burdening the repayment process.
- Prepayment – Prepaying any existing loan amount ensures an applicant is left with more disposable income, improving the chance to get a loan approved.
- Mixing up the loans – A healthy mix of un secured and secured loans helps build a stronger credit report.
- Limiting loan applications – Multiple loan applications are reflected in the credit report and could portray the applicant as being loan hungry and desperate, lowering his/her credibility.
- Limiting loan amounts – It is easier to obtain loans for small amounts, as these can be repaid easily. Limiting the loan amount to the sum that is genuinely needed could help quicken the entire process.
FAQs on Andhra Bank Personal Loan Eligibility
Q. What is the maximum loan amount sanctioned by Andhra Bank?
A. The maximum loan amount depends on the applicant and the type of personal loan availed.
Consumer Loan scheme – Salaried applicants can avail loan amounts up to 10 times their monthly salary and pensioners can avail loan amounts up to 4 times their monthly pension.
Clean Loans – The maximum amount pensioners can avail under this scheme is limited to Rs. 5 lakh. Non-salaried applicants can apply for loan amounts which are twice their average annual income.
Q. Does Andhra Bank insist on co-obligation?
A. Yes, co-obligation is compulsory in order to avail a personal loan. The co-obligant could be a family member or a third party with a regular source of income.
Q. What are the documents required to apply for a personal loan?
A. Applicants need to furnish a copy of their salary slip, IT returns, photo ID and property statement.