Andhra Bank offers two different personal loan schemes with interest rates ranging from 11.6% to 13.25% p.a. The interest rates vary depending on whether you are a private sector employee, a self-employed individual or an individual working under a government organisation. Typically, government employees get lower rates of interests. The highlight of both the schemes offered by the bank is that there are no pre-payment or part payment charges and only a nominal processing fee. The maximum loan tenure option available is 5 years.
Effective 1 April 2020, Andhra Bank has merged with Union Bank. For now there are no changes in Account Number and IFSC Code. For more information checkout Union Bank Personal Loan Interest Rates.
|Particulars||Government Employees||Private sector Employees, Self-employed|
|Interest Rate||11.6% to 12% p.a.||12.1% to 13.25% p.a.|
|Loan Tenure||Maximum 60 months|
|Loan Amount||Depends on the income of the applicant|
|Credit Score||700 and above|
|Lowest EMI per Lakh||Rs.2,204 (11.6% interest for 5 years)||Rs.2,230 (12.1% interest for 5 years)|
The key features and interest rates for either of the personal loan schemes offered by Andhra Bank are shown in the table given below:
|Personal Loan Scheme||Best For||Interest Rate|
|Government employees||Private sector employees, self-employees|
|Consumer Loans||Purchasing durable items and household appliances||
|Clean Loans||Meeting immediate financial contingency||
Andhra bank offers this loan to individuals who wish to consumer durables such as refrigerators, wooden furniture, TVs, cooking ranges, and other household items. Salaried individuals, self-employed persons, and LIC agents can avail this loan from the bank. Also, pensioners, Central/State government employees, and employees of Public Sector Undertakings (PSUs) who draw pension/salary from Andhra bank are eligible for the loan.
The maximum quantum of finance available under this scheme is as follows:
This loan scheme is offered to individuals who have an urgent need for cash for any personal reason. In this case as well, employees of private sector companies, non-salaried individuals, and LIC agents can apply for the loan. State and Central government employees, employees of PSUs, and pensions who draw salary/pension from Andhra Bank are also eligible.
The maximum quantum of finance available under the scheme for each profession is given below:
Details regarding the personal loan interest rates and other important details about the schemes offered by Andhra Bank are given in the table below:
|Particulars||Interest Rate||Processing Fee||Loan Tenure||Loan Amount||Minimum salary|
|Salaried/Self-employed||12.1% to 13.25% p.a.||Nominal||Up to 60 months||Depends on the income of the loan applicant||At the discretion of the bank|
|Government Employee||11.6% to 12% p.a.|
Here are a few factors that affect the interest rate offered to you by Andhra Bank:
Before you apply for a personal loan with Andhra Bank, an understanding of the following key factor will help you understand Andhra Bank Personal Loan Interest Rate:
1. Mr. Mehta, who earns Rs.25,000 per month in a private company, was in urgent need of funds for his son’s graduation studies. He decided to get a Rs. 1 lakh personal loan from Andhra Bank for a 1-year tenure. The interest rate offered to him under the Clean Loan scheme was 12.25% p.a.
The amortisation table for the loan applied for is as follows:
For Salary of Rs.25,000 Per Month
|Loan amount||Rs.1 lakh|
|Loan tenure||1 year|
|Interest rate||12.25% p.a.|
|Month||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance|
2. Ms. Soni, who earns Rs.50,000 per month in a private company, wished to get a Rs.1 lakh loan to buy a new refrigerator for her home. She approached Andhra Bank for a 1-year Consumer Loan and was offered the loan at 12.1% p.a. interest.
The amortisation table for her loan is as follows:
For Salary of Rs.50,000 Per Month
|Loan amount||Rs.1 lakh|
|Loan tenure||1 year|
|Interest rate||12.1% p.a.|
|Month||Principal Paid(A) (in Rs.)||Interest Paid(B) (in Rs.)||Total Payment (A+B) (in Rs.)||Outstanding Loan Balance (in Rs.)|
Yes, Andhra Bank requires loan applicants to provide a co-obligator for the loan. The individual’s father, spouse, or any third party who has sufficient income on a regular basis can act as the co-obligator.
In case of pensioners who have applied for the Clean Loan, the nominee of the pensioner can be the guarantor. In case of LIC agents who have applied for the Clean Loan, an additional guarantor who is also an LIC agent is required.2. Do I have to pledge anything for the consumer loan?
Yes, as the primary security, you will have to pledge the hypothecation of the item you purchase with the loan. As collateral security, you will have to pledge a LIC policy with a surrender value equal to the loan amount or shares, Units, or NSCs of sufficient value.3. Is there a maximum age restriction?
In case of the Clean Loan scheme offered by the bank, the maximum age limit for pensioners is 75 years and for LIC agents is 55 years.4. Can I get a joint loan?
Yes, you can get a joint loan with your spouse from Andhra Bank.5. Are any administrative charges applicable?
Yes, the bank may apply administrative charges on your loan account that will have to be paid by you every quarter.6. How do I repay the loan?
You can visit the nearest Andhra Bank branch on the due date to pay your monthly instalment. Alternatively, you can provide standing instructions to the bank to deduct the amount from your savings account.
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