In the realm of personal finance, having access to reliable and convenient financial solutions is vital. Whether it’s for managing unexpected medical expenses, funding your child’s education, or fulfilling a dream vacation, a personal loan can provide the necessary financial support. Andhra Bank Personal Loan stands as a trusted resource, offering individuals the means to achieve their aspirations. In this article, we’ll delve into the features, benefits, eligibility criteria, application process, and more, to uncover the details of Andhra Bank Personal Loan.

Andhra Bank Personal Loan Rate and Features

Feature	Details
Interest Rate	10.49% – 18.00%
Lowest EMI per Lakh	Rs 2148
Tenure	12 to 60 months
Processing Fee	2.50% (Min Rs 1000)
Prepayment Charges	Allowed after 12 Months (2 – 4 %)
Part Payment Charges	Allowed after 12 Months (2 – 4 %)
Max Loan Amt	₹ 75 lakh
Min Loan Amt	₹ 50,000

Occasionally, special financial assistance may be required to maintain a certain standard of living and pay for specific expenditures in a city with a thriving economy. We’ve got you covered, so don’t fret. Looking for a Personal Loan from Andhra Bank? We assist you in obtaining Andhra Bank personal loans at the best rates and with the least amount of difficulty. In essence, our network assists you in selecting the loan that is specifically tailored to your needs, as this is what a personal loan entails.

Less Documentation: The Andhra Bank personal loan can benefit from requiring the fewest documents. Generally, proof of identity, proof of address, and proof of income are sufficient to file for a personal loan.

Decent variety: Andhra Bank offers personal loans to satisfy the money-related needs of a variety of individuals, including salaried workers, self-employed candidates, experts, LIC operators, and retirees.

Adaptable Loan Tenure: Depending on your income, you can repay the loan amount over a period of up to 60 months.

Floating Interest Rate: The rate of interest on a personal loan from Andhra Bank is linked to the repo rate, and the premium is determined using the reduced balance method. This effectively reduces the total interest payment, making the Andhra personal loan offer more attractive to consumers.

Andhra Bank Personal Loan Interest Rate is 10.50%

There are numerous strategies utilised by banks to entice customers to repay their loans. The primary metric is the rate of interest charged by each bank when granting loans to applicants. In order to avoid losing customers, the best thing banks can offer is a better interest rate on the loan amount than competing banks.

Following are the interest rates offered by Andhra Bank for personal loans:

Sort of Personal Loan	Rate of Interest (p.a.)
Clean Loan	11.20% onwards
Consumers’ Durable Loan	11.70% onwards
Personal Loans that are Secured (against KVP, NSC, LIC Policy)	13.15% onwards

Andhra Bank Personal Loan Eligibility Criteria

Before loan applications can be approved, banks stipulate a number of conditions or requirements that must be met. They are

Age	Minimum 21 years
	Maximum 65 years
Nationality	Indian
Employment Type	Salaried or Self-employed
Employment status	Employed/In-business for at least 2 yrs. and at least 1 yr. with current employer/business
Minimum Income	Rs.4000 – Rs.20000 per month (Varies according to area, which is higher in cities)
Maximum Loan Amount	Rs.70 lakhs (Based on your repayment capability)
Tenure	Minimum – 6 months
	Maximum – 60 months
Credit Score	Preferred 750

These are the fundamental requirements that must be met for your loan to be approved. These criteria will vary from bank to bank.

Documents Required for Andhra Bank Personal Loan

Important documents required for personal loan applications

• Completed loan application
• 3 Passport size photographs
• Statement of Bank Account/ Pass Book for last six months
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• IT returns for the three years for self-employed professionals
• Form 16/IT returns for the last two financial years for salaried employees

Factors Affecting Andhra Bank Personal Loan Application

In addition to the eligibility requirements, there are a number of factors that influence your loan application, primarily the expected minimum salary and your loan amount eligibility. They are

Location: The location of your residence plays a significant role in your loan application. This determines the minimal income required to qualify for a personal loan. The minimum wage is higher in cities, particularly in metropolitan areas such as Mumbai.

Income: The greater your income, the larger your loan amount will be. This also demonstrates your outstanding repayment capacity.

Housing situation: Whether you reside in your own home or in a rental property plays a role in determining the amount of your loan. This is because residing in a rental property reduces your disposable income, thereby reducing your ability to repay.

Company of employment: Working for a reputable company for close to a year may indicate to the lender that you have a stable position; the higher the company’s rating, the lower the personal loan interest rate can be negotiated.

Existing credit: If you already have a loan or credit card debt, this will be a significant factor in determining the loan amount and interest rate.

Credit history: Your credit score is calculated in large part based on your credit history. It is the primary factor that determines the loan quantity, interest rate, and term. If your credit history contains any discrepancies, there is a possibility that your loan application will be denied outright.

Andhra Bank personal loan eligibility criteria for salaried and self-employed person

Age limit: Minimum – 21, Maximum – 55

Maximum Loan Amount for Andhra Bank Personal Loan:

After all deductions including the repayment instalment for the proposed loan shall not be less than 40% of gross salary.

For Non-Salaried Persons: 2 times average annual proven income

For Pensioners: 8 times of monthly pension. Cap for pensioners is Rs. 5,00,000/-. Maximum age 75 years. 

Minimum Salary Requirement for Andhra Bank Personal Loan: Minimum net income required for Andhra Bank personal loan is Rs.25000 per month

Work experience Required for Andhra Bank Personal Loan

Number of years in current company: 6 months

Total work experience: Minimum 2 years

Andhra Bank Personal Loan Tenure: Andhra Bank offers loans for a tenure with maximum of 60 months

Loan Period	For State and Central Government employees,	For private employees, non-salaried class and LIC agents etc
Up to 36 months	MCLR (One year) + 2.85%	MCLR (One year) + 3.35%
Above 36 months	MCLR (One year) + 3.10%	MCLR (One year) + 4.35%

Andhra Bank Personal Loan Foreclosure charges: NIL

How can I get Andhra Bank Personal loan?

Personal loan Application Process for Existing Customers

Existing customers can register for an Andhra Bank Personal account online or at a local Andhra Bank branch. You can also obtain the application form for a home loan from the Andhra Bank website, fill it out, and submit it to a bank representative. Due to the pre-existing situation, the likelihood that the application will be approved will be high, and funds will be distributed quickly.

Personal loan Application Process for New Customers

The application process for an Andhra Bank personal loan is identical for both new and existing consumers. The only distinction is that, due to the absence of a prior relationship, the loan approval process will take longer – up to a week as the verification process is completed.

Advantages of Andhra Bank

• Low interest rate
• No hidden costs and administrative charges
• Less paperwork
• Long tenure
• Minimum Income Requirement
• Pensioners get attractive offers

Ways to reduce your EMIs

Check your credit score and credit report: Before you even consider applying for a loan. If your credit score is 750 or higher, you have paid all of your bills on time and are an ideal customer for the bank. This gives you the advantage in any negotiations for a better loan offer.
On the other hand, examining your credit score enables you to correct any negative information on your report, as a low credit score is grounds for loan denial.

Negotiate with the bank: If you are in good standing with your bank and they are aware of your income and expenses, you can negotiate favourable loan terms. You can also negotiate a better deal with existing lenders or previous lenders if you have paid your debts on time, demonstrating that you are very disciplined when it comes to financial matters.

Opt for a longer tenure: If you opt for a longer loan term, your EMI will decrease proportionally as your principal and interest are spread over a larger number of months. However, while the actual monthly outflow will be smaller, you will be paying EMIs and interest over a lengthier period of time. Therefore, while your monthly payment may be less, you may end up paying more over the life of the loan.

Making an early prepayment: Making an early prepayment is one method to significantly reduce your EMI for the majority of your term. If you can afford to prepay a portion of your loan, you should do so in the early months/years of the loan’s term, so that your principal decreases and you save interest on later installments.

Frequently Asked Questions (FAQs)