Andhra Bank is a medium-sized public sector bank, with a network of 00+ branches, 15 extension counters, 38 satellite offices and 1563 automated teller machines as on 30 Nov 13. The products and services provided by the bank mainly categorised into businesses of Retail, Corporate, NRI, MSME, and Agricultural industries. Under the Retail Business, the bank offers deposits, loans, cards, DMAT services, insurance, and mutual funds to individual customers. Under the Corporate Business, the bank offers loans & advances, project appraisals, and loan syndication. Under the NRI business segment, the bank offers Deposit schemes, loans, remittance services, and investment services to the non-resident Indians. Andhra Bank provides best personal loans with attractive interest rates to individuals having an assured source of income. Read on to learn about the eligibility and documentation requirements for the loan you avail.
At least 21 years old
Less than 55 years old
Salaried / Self â€“ Employed
with regular income
Earn more than the minimum
Salaried with Regular Income
Maximum allowed personal loan is Rs. 2 lakhs
EMIs of other loans lower
Pay off your Credit Card bills
Choose longer tenure loan up to 60 months
|Interest Rate||13.05% to 14.30%|
|Loan Tenure||60 months|
|Pre Closure Charges||Nil|
|Guarantor Requirement||guarantor required|
Andhra Bank was founded in 1923 in Andhra Pradesh. It is a public sector bank that is medium sized with more than 2000 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.
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 loans given out to salaried individuals whereas Clean Loans refer to the Andhra Bank personal loans given out to self-employed individuals.
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.
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.
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-
Andhra Bank offers two kinds of personal loans to its customers for taking care of any need which may arise with time. Both these loans are available on the new MCLR base interest rate system and the Base Rate linked interest rate system.
According to RBI guidelines, all new loans (including personal loans) offered by Andhra Bank will be linked to MCLR (Marginal Cost of Funds based Lending Rate). MCLR rates are dependent on various factors like cost of funds, cost of maintaining cash reserve ratio (CRR), minimum rate of return (margin / profit) and bankâ€™s operating expenses. Following is the schedule of MCLR rates with effect from April 1, 2016.
|1 month MCLR||9.40%|
|3 month MCLR||9.45%|
|6 month MCLR||9.50%|
|1 year MCLR||9.60%|
All new personal loans provided by Andhra Bank will be linked to the MCLR based interest rate system. The rate of interest applicable on the loans will be dependent on the tenure of the loan, along with a certain percentage which will be added over and above the current MCLR rate, by the bank.
For all existing borrowers, Andhra Bank will provide personal loans on which the interest will be calculated as per the Base Rate system. Following is the Base Rate and the Prime Lending Rate (BPLR) applicable on Andhra Bank personal loans.
|Base Rate (w.e.f 5/10/2015)||BPLR (w.e.f 29/9.2015)|
Following are the interest rates applicable on the Consumer loan and the clean loan offered by Andhra Bank. Please note that existing customers have the choice to migrate to the MCLR linked interest rate system for their personal loans.
AB Consumer Loan
AB Clean Loan
For loans up to 36 months: Base rate + 5.50 % = 15.75%
For loans above 36 months: Base rate + 5.50% + 0.25 = 16.00%
For loans up to 36 months: Base rate + 5.50 % = 15.75%
For loans above 36 months: Base rate + 5.50% + 0.25 = 16.00%
Note: The MCLR rates given above are effective as of April 1, 2016. To know the currently applicable interest rates for personal loans, please contact the bank at the time of applying for the same. Also, interest rates for personal loans are subject to change with change in MCLR / Base Rate.
Andhra Bank personal loans are offered to individuals who fulfil the following requirements-
BankBazaar offers you a simple and hassle-free method of calculating the EMI for your Andhra Bank personal loan. The EMI calculator that can be found on the BankBazaar homepage is the most uncomplicated way to calculate your monthly EMI instalment.
In order to access the BankBazaar EMI calculator, all you have to do is log onto BankBazaar’s homepage and hover your mouse over the ‘Finance Tools’ tab located on the toolbar which will result in the appearance of two options. The options will be EMI Calculator and Finance Calculator.
Once you click on the EMI Calculator option, the tab will lead you to three options, which are, Car Loan, Home Loan and Personal Loan.
Since you are looking to calculate your personal loan monthly EMI instalments, click on the Personal Loan tab. Upon clicking the Personal Loan tab, the page will automatically get redirected to the BankBazaar’s Personal Loan EMI Calculator.
The EMI calculator is an easy to use tool that makes calculating EMI one of the easiest tasks to perform on the web.
You can now see the available tabs and once you fill in the relevant information, you will get your monthly instalments of EMI on your personal loan. Simple, effective and easy.
In order to use the EMI calculator on the BankBazaar webpage, you have to just add your loan amount, loan tenure to the relevant slots. Once you key in the Andhra Bank personal loan interest rate assigned to you and any processing fee if applicable, the EMI calculator will furnish you with all the details regarding the Andhra Bank personal loan that you desire.
The EMI calculator on the BankBazaar page is supplemented with an amortization table that allows you to understand how your monthly EMI instalment is divided between the principal loan and the interest amount on a per year basis.
The EMI calculator shows you the break-up of the total amount payable by you in a neat and easy to understand pie chart
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 -
In these cases borrowers apply for an Andhra Bank personal loan for the first time.A Fresh Finance is divided into two categories.
|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 -
*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
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.
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.
Andhra Bank personal loan is processed in 4 days.
Andhra Bank personal loans are offered for a minimum tenure of 12 months and a maximum tenure of 60 months.
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.
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.
In order to avail an Andhra Bank personal loan, you do not have to put up any kind of security.
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.
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.
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.
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.
No, there are no extra charges levied in the event of pre-closure of loan accounts as long as all outstanding dues are cleared.
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.
Customers may apply for personal loan either directly from any branch of the bank or from specialised Retail Credit Branches. The loan application will have to be filled in and submitted to the bank, and your eligibility for the facility will be at the sole discretion of the bank.
Personal loans from Andhra Bank are available to customers who wish to borrow funds to fund personal expenses such as wedding, educational requirements, home improvement, capital for meeting daily expenses, etc.
Customers can choose to avail loans on a joint basis along with their spouse and the income of the spouse will also be taken into consideration when determining the terms and conditions for your loan.
EMI, or Equated Monthly Instalments as they are known as in their extended form comprise of interest and principal. The best way to figure out how much money you will be required to pay each month is to use the EMI calculator on the bankâ€™s official website. Doing so will educate you on the amount you will have to pay on a monthly basis, the repayment period, and the interest you will be paying on the loan.
The rate of interest offered by Andhra Bank is usually floating and linked to the bankâ€™s Base Rate which undergoes changes on a periodic basis. Interest is charged on daily reducing balances, this reducing the effective interest rate to a significant extent.
Personal loans from Andhra Bank come with nominal processing fees that must be paid upfront when the loan is being sanctioned. Administrative charges are also applicable to personal loans from Andhra Bank and must be paid at the end of each quarter.
The payment of EMIs can either be done at any branch of Andhra Bank, or the customer can choose to provide the bank with standard instructions to deduct the instalments from your savings account.
Prepayment of loans can be done based on the interests of the borrower. As you keep repaying the loan, the interest component will reduce depending on how much you have repaid. The loan can be cleared well before the due date if customers can manage to do so, and prepayment can be done without the levy of any additional charges.
S.K Kalra, Executive Director of Andhra bank stated that the bank is planning to establish around 300 branches by the end of this year. HE further stated that more than 100 branches has been opened already. He added that most of the banks opened this year will be set up in Andhra and Telangana. He also spoke about the issues in our economy currently and stated that Andhra is doing a good job compared to other players in the market like steel manufacturers, infrastructure sector and power sector, who are not performing well currently. Answering a question, he stated that Andhra bank is taking part in all the programme introduced by AP government.
K.V. Subbaiah, General Manager, Andhra Bank (Bangalore Circle) announced launched the new initiative, â€˜Retail Loan Express (RLE)â€™ at its Zonal Office in Bangalore. The Bank Zonal Manager Krishnamurthy V. Varanasi added that the new facility intends to focus mainly on the retail loan segment. In this facility, Andhra Bank marketing officers would go to the customer doorsteps of to assist them in filing application forms. Once the application forms are filled and the required documents are collected the officerâ€™s will bring back the application form to the office for processing.
Krishnamurthy V. Varanasi added that this would enable reduction of Turn Around Time (TAT), to allow quicker disposal of loans. The Retail Loan Express intends to take care of processing as well as marketing housing loans. The service covers local branches in Tirupati. the bank also plans the same for covering vehicle, educational and mortgage loans.
Andhra Bank will soon make its presence felt across India with 2,500 new branches that the bank plans to open within this financial year. With this move the bank will extend its reach beyond its current geographic boundaries of Andhra Pradesh and Telangana. It plans to open 1,000 of the new branches in other states. This move also comes after Andhra Bank was chosen as one of the 9 banks that the government plans to infuse capital into, owing to its credible operations and performance.
By extending its reach, Andhra Bank stands to gain from widening its customer base. It also boosts the governments agenda for a more inclusive banking system as establishing new branches will allow more people to access banking services. Andhra Bank provides different kinds of retail lending and savings banking solutions including personal loans, car loans, home loans etc. which will help in mobilising.