Andhra Bank Personal Loan: The Andhra Bank is a public sector bank having around 2885 branches all over the world and it offers different financial products to its customers.
How To Apply For Andhra Bank Personal Loan?
The Andhra Bank also offers a personal loan which is famous among investors, because of its attractive features. Personal loans are unsecured or secured type of loans that helps to meet the emergency expenses of the people. It is famous among all categories of loans because of its features like faster disbursal, less documentation, no security, etc.
The Andhra Bank personal loan has the following features:
Lower interest rate
The Andhra Bank charges a comparatively lower amount of interest rate for a personal loan and therefore it reduces the total cost of the loan.
For the approval of a personal loan, Andhra Bank asks for less documentation and that includes your ID proof, address proof, and salary or income proof. Hence it makes it easy for the applicant at the time of urgency.
The processing of the personal loan is faster with quick approval and disbursal.
The bank provides maximum repayment tenure of 5 years. the applicant has to choose the repayment period as per its affordability. But the tenure should not be longer as it increases total interest cost.
Reducing balance interest method
The Andhra Bank uses the reducing balance method for interest calculation. In this method, the interest is calculated on a monthly reduced balance and therefore it decreases total interest cost.
The Andhra bank has provided different schemes for a personal loan to meet the requirements of different individuals.
Andhra Bank personal loan details:
The Andhra bank offers a personal loan with a better interest rate and with no foreclosure charges. This bank provides maximum tenure of 60 months for the repayment of personal loans.
To meet the different personal loan requirements of applicants, the bank has provided the following different schemes for a personal loan.
Andhra Bank clean loan
It is an unsecured type of loan offered to the salaried, self-employed, pensioner applicants. The amount of loan to be sanctioned depends on the profile of the applicant.
Andhra Bank consumer loan
This scheme offer loan to all individuals for the purchase of durable goods and appliances.
Andhra Bank loan against NSC/KVP/LIC
It is the type of secured loan which is offered to the personals with security documents like KVP/NSC. In this policy, the Kisan Vikas Patra, national savings certificate, life insurance policy are considered as securities for the approval of the loan.
For availing of the personal loan from Andhra Bank, the applicant should be eligible in the following criteria:
The applicant should have a minimum age of 21 years and shouldn’t be more than 65 years.
The applicant for a personal loan should be of Indian nationality.
Both salaried and self-employed persons can apply for a personal loan at Andhra Bank.
The salaried person should have a minimum of 2 years of experience along with a minimum of one year of experience with the current employer. The self-employed person should have a minimum of 2 years of experience.
The income status of the applicant reflects the repaying capability. The criteria of minimum income vary with the location i.e. for rural areas the minimum income is lower and in urban areas it is higher. The range of minimum income criteria is from Rs 4000- 20000.
The credit score for applying for a personal loan should be 750 or above.
Documents required for Andhra Bank personal loan:
For the application for a personal loan, the applicant should have the following documents.
Duly filled loan application
Proof of Identity
Here are some documents that can be used as identity proof: Voter ID card, Driving license, passport, PAN card, Aadhar card, etc.
Proof of residence
Here are some documents that can be used as proof of address/residence: electricity bill, water bill ID proof with address phone bill etc.
Bank statement or passbook details of the last 6 months
Passport size photographs
For salaried person
Form-16 or IT returns for last two years Last three-month salary slip
For self-employed person
IT return of last 3 years.
For loan against NSC/KVP
Request letter to post office for using the security
For loan against LIC policy
Original policy document, latest premium payment slip, request letter to LIC.
Fees and charges:
The extra amount charged by the Andhra bank for a personal loan is listed below:
The processing charges of the personal loan at Andhra Bank are nominal as per the guidelines.
Andhra Bank charges administrative charges at the end of every quarter. The cost of administrative charges is decided as per the bank guidelines.
The Andhra Bank never charges payment penalties for personal loans excluding the policy of loan against NSC/KVP/LIC.For the loan against NSC/KVP/LIC, the bank charges a prepayment penalty as per Bank guidelines.
Foreclosure is clearing of the loan before the tenure period and the Andhra Bank never charges penalties for the foreclosure of a personal loan.
Why should I choose Andhra Bank’s personal loan?
The interesting feature for taking the personal loan from Andhra Bank are: competitive interest rate, no prepayment penalty, no foreclosure penalty, longer repay tenure up to 60 months, etc.
Are there any foreclosure charges for a personal loan in Andhra Bank?
No, Andhra Bank never charges a penalty for the foreclosure of a loan.
How can I get the Andhra bank personal loan quickly?
For faster loan approval you should check the eligibility criteria for the loan approval and thus by fulfilling all the requirements you can get faster disbursal.
How can I increase the personal loan amount while approval?
application along with co-applicant increases the chances of higher loan amount approval otherwise by keeping collateral you can increase the loan amount.
Is Andhra Bank charges a penalty for prepayment in a personal loan?
In the case of a loan against NSC/KVP, the bank charges prepay penalty while for other policies the bank never charges a penalty.
Disclaimer :- This article is for informational purposes only. If you want to take a loan then you go to the official website.