The consumer loans offered by Andhra Bank provide financial support to customers for the purchase of household appliances and consumer durables.
Eligibility Criteria
Customers who wish to take out a consumer loan from Andhra Bank are required to meet the following criteria:
- Must be an individual with the capacity to repay the loan
- Must be a salaried person
- If not salaried individual or businessman, the applicant must be a pensioner drawing pension.
Features of Andhra Bank Consumer Loans
- The maximum amount of money that is sanctioned to the customer is the equivalent of his/her gross salary for ten months (if the customer is a salaried individual). If the customer is a non-salaried individual, i.e. self-employed, the maximum amount sanctioned will be 40% of his/her gross yearly income. If the customer is a pensioner, the amount sanctioned will be the equivalent of his/her pension for four month. The amount is subject to the value of the article purchased as the maximum amount offered will be 75% of the article or any of the above, whichever is lower.
- The maximum repayment period is 60 months.
- The father / husband or any third party with adequate regular income and worth can act as guarantors.
- Security must be provided in the form of hypothecation of the item bought through the bank’s funding.
- Pledges of units, NSCs, shares, etc. of sufficient value and assignment of LIC policy with the corresponding surrender value are accepted as collateral security.
- The documents accepted by the bank for sanctioning the loan to salaried individuals include a proof of income (property statement, IT returns / salary slip / assessment order).
- Property statement and the latest IT assessment order are accepted as proof of income for non-salaried individuals.
Benefits
- No prepayment charges
- Low processing fee
- Minimal documentation
- Hassle-free application procedure
- Dedicated team for customer service
- Flexible repayment period
Interest Rate
If the tenure of the loan is 36 months or less, the interest applicable is the base rate plus 5.50%, which is 15.75% at present. If the tenure of the loan is 36 months or more, the interest will be the base rate plus 5.50% plus 0.25%, which is 16% at present.
