Overview about Andhra Bank Professional Loan
A professional loan from Andhra Bank is an overdraft, term loan or a combination of the two based on the reason for taking credit. It is designed to help professionals meet their financial requirements for a better business environment.
Purpose of Andhra Bank Professional Loan
- To establish office premises
- To renovate office premises
- To refurbish office premises
- For the purchase of equipment and tools
- To cover travel expenses for professionals
- To meet the daily working requirements of the business
Eligibility criteria for Andhra Bank Professional Loan
To be eligible for a professional loan from Andhra Bank, applicants must meet the following criteria:
- Should be practising chartered accountants, financial consultants, management professionals, cost accountants, valuers, company secretaries, engineers or architects.
- Should be constituted as individuals, societies, companies, firms or limited liability firms that render professional services.
- Must be an assesse under Income Tax for a minimum of the past two years.
- Must be registered with their particular professional body / board / association.
Features of Andhra Bank Professional Loan
- The maximum amount of money that is granted through a professional loan
from Andhra Bank is Rs.10 lacs.
- The borrower must provide personal security and hypothecation of the items purchased through the loan.
- No third party guarantee or collateral security is required.
- The loan is covered under GGTMSE.
- The amount granted for term loans is 75% of the value of the asset/s bought.
- The working capital limit on the loan is 75% of the income expenditure of the last year in accordance with Profit and Loss account.
- The overall exposure within two times of medial yearly income of the previous two years.
- The upfront processing charges applicable are 0.50% of the amount the customer wishes to borrow.
- The repayment period of the loan is a maximum of 60 EMIs.
- The maximum repayment holiday granted on the loan is one year for interest and principal.
Benefits of Andhra Bank Professional Loan
- No prepayment charges
- Low processing fee
- Minimal documentation
- Hassle-free application procedure
- Dedicated team for customer service
- Flexible repayment period
Andhra Bank Professional Loan Interest rate
The rate of interest charged on a professional loan from Andhra Bank is the base rate plus 3.25%. If the base rate is 10.25%, the total interest applicable on the loan is 13.50%.