Andhra Bank Professional Loan

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%.