Andra Bank Personal Loan Interest rate ranges from 13.85% to 15.1% p.a. Interest rate varies based on the Loan tenure and personal loan provided for Salaried, Self -Employed and for Pensioners.
For loans up to 36 months: 13.85% p.a.
For loans above 36 months: 15.1% p.a.
|For loans up to 36 months: 13.85% p.a.
For loans above 36 months: 15.1% p.a.
For salaried applicant: Each instalment not less than 40% of gross salary.
For Pensioners: 8 times of monthly pension not amounting to more than Rs.5 lakh.
For income tax assesses: 2 times the average renewal commission for the previous 3 years, to a maximum of Rs.2 lakh.
For those who are not income tax assesses: 50% of average renewal commission based on statement of income for the previous 3 years, to a maximum of Rs.2 lakh.
|Twice the average annual income of the last 3 years shown in IT returns.|
|Loan Tenure||Maximum of 60 months, with a moratorium period of 1 year.||Maximum of 60 months, with a moratorium period of 1 year.|
|Processing Fee||Yes, nominal||Yes, nominal|
|Age||For salaried: 55 years For Pensioners: 75 years||For non-salaried: 55 years|
|Prepayment Charges||No charge||No charge|
|Foreclosure Charges||No charge||No charge|
A public sector bank with network of 2000 plus branches, Andhra Bank offers attractive personal loan schemes to help you meet your urgent financial requirements. Andhra Bank Personal Loans are unsecured loans and you can use the amount received as personal loan to meet your genuine personal needs and purchase household appliances. Under its personal loan scheme, Andhra Bank offers Clean Loans and Consumer Loans.
Andhra Bank offers different rates of interest on personal loans for different tenures. For personal loans up to 36 months, the bank charges 5.50% plus base rate which is 10.25%. For personal loans taken above 36 months, Andhra Bank charges 5.50% plus base rate and a charge of 0.25%. However, Andhra Bank may change its personal loan interest rates without giving you any prior notification.
How to Calculate Interest/ EMI on Andhra Bank Personal Loan
You can calculate your Andhra Bank Personal Loan interest rate by using a personal loan EMI calculator. In the calculator, you need to put the total loan amount, tenure of your loan, rate of interest and processing fees (if any). When you put all these information in the calculator, it will instantly reveal your equated monthly instalments and loan amortization table. The loan amortization table will contain information about your EMIs, interest and principal payment made and the outstanding loan amount.
Example: If you have taken a personal loan of Rs.1 lakh for 5 years at 15.75% from Andhra Bank, you will be repaying the following principal and interest amounts on yearly reducing balance to the bank:
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
|Year 4||20,834||8,189||40, 437|
|Year 5||24,363||4,661||16, 075|
Factors Affecting Andhra Bank Personal Loan Interest Rates
There are a lot things that may affect your Andhra Bank Personal Loan Interest Rate 2015. They include your CIBIL score, relationship with your bank and the nature of your employment etc. Listed below are the major factors that may affect your personal loan interest rate:
- Borrowing class or category: Banks have different parameters for considering personal loan applications coming from salaried, self-employed individuals and other categories like category A and B. If you are in a stable job and the nature of your employment is permanent, you may be in a more advantageous position to get a personal loan at lower rates of interest. Having a business of your own will also help you receive a personal loan even if you are in an advanced age.
- Your relationship with Andhra Bank: Your relationship with the bank also plays a crucial role in helping you receive lower rate of interest on your personal loan application. You can maintain a good relationship with your bank by paying your previous loans on time. Besides, Andhra Bank may also consider other factors like whether you pay your credit card bills on time or not while offering lower rate of interest on your personal loan.
- Loan amount: Your personal loan interest rate may be affected by the amount you borrow.
- Loan tenure: Normally, if you take a personal loan for a longer period, you may end up paying high amount of interest on your personal loan. A short term personal loan may attract higher rates of interest than a personal loan taken for a longer tenure.
- Repayment Capacity: The most important thing a bank looks for while sanctioning a personal loan is your repayment capacity.
- Age: Your age may one of the decisive factors for determining your personal loan interest rates.
How CIBIL Score affects your Andhra Bank Personal Loan Interest Rates
Don’t ever neglect your CIBIL report. Like all the above mentioned factors, CIBIL score plays a major role in determining your Andhra Bank Personal Loan Interest Rates. If you have a good credit score, Andhra Bank may offer you a lower rate of interest compared to other applicants who do not have a satisfactory credit score. You can maintain a good credit score or CIBIL score by repaying your previous loan amounts on time without defaulting. In fact, with a good credit score, you can negotiate with Andhra Bank to receive a cheaper rate of interest.Normally, banks consider 750 as satisfactory CIBIL score.
Key things you should know about Andhra Bank Personal Loan interest rates
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 2015:
- You need to understand what fixed and floating interest rates are. In a fixed rate personal loan, you need to repay a fixed amount of interest on your personal loan for the whole tenure. But, if you opt for a flexible rate of interest, your personal loan interest rate will change as per the change in bank’s prime lending rate.
- Your personal loan interest rate may go up, when the repo rate goes up.
- Andhra Bank may not ask for security or collateral to grant you a personal loan.
- A good CIBIL score is important to avail a competitive rate of interest on your Andhra Bank Personal Loan Rate 2015. CIBIL score plays a crucial role in determining your personal loan interest rates.