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## Introduction

Andhra Bank is a very well known name in the banking sector. Andhra bank has grown from being a prominent bank in south India to being among the top banks in India. Andhra Bank is a public sector bank of India that has been recently merged with two other public sector banks Union Bank of India and Corporation Bank. This merger has made the resulting entity among the top five public sector banks in the country.

Andhra Bank has many types of loan options for the customers to choose from depending on their needs. Loans of Andhra bank are available at very competitive rates and with comfortable repayment tenure so as to ensure that they do not pinch the pockets of the borrower too much. Details of the loans of Andhra Bank and its repayments are mentioned below.

## What is repayment of a loan?

Loan repayment in the most simplest and obvious ways can be explained as the return of the loan taken from the bank along with the interest thereon at regular and timely intervals throughout the tenure of the loan and ensuring that the borrower repays it in full by the end of such tenure.

Andhra Bank offers many flexible repayment options to its borrowers. Customers can repay the loan taken at their flexibility and as per the agreement between them and the bank in accordance with the guidelines laid by the bank in this regard.

## How does loan repayment work?

Customers are required to repay the loan on a regular basis throughout the tenure of the loan. These regular payments are known as EMIs or Equated Monthly Installments. EMIs are a summation of the principal amount to be paid along with the interest charged. Interest can be charged on either flat rate basis or reducing balance basis as per the policy of the bank.

The mathematical formula for calculating the EMI is stated below.

EMI = P × r × (1 + r)n/((1 + r)n - 1)

Where,

• P=principal or the loan amount
• r= rate of Interest
• n=repayment period or tenure of loan

## How to use a repayment calculator?

Repayment calculator or EMI calculator is the benefit that is given by mist banks to its customers as well as potential customers free of cost. This feature is available at the website of the bank and can be used by the potential borrower to get an estimate of the amount that he/she will have to pay on a monthly basis to repay the loan taken. This enables the customers to plan their expenses or be prepared and thereby not be burdened by the cost of the loan taken.

The EMI calculator can be found at the website of Andhra Bank at the following link.

Home>> Tools >> EMI Calculator

Customers will have to fill in the following details to get the estimate of the EMI to be paid.

• No of installments
• Loan Amount
• Interest rate

After this, they can click on ‘calculate’ to get the exact EMI to be paid each month as well as the total interest that they will have to pay for the loan taken. Customers can also click on ‘chart’ to get a detailed table of the installments paid each month as well as the interest component that will be part of each such installment.

Andhra Bank allows the customers to try various permutations on the EMI calculator to get the best fit of the EMI payment as per their convenience.

## Repayment Schedule of Personal Loans in Andhra Bank

Personal loans of Andhra Bank are split in two forms namely, Consumer Loans and Clean Loans. The details of each such loan and the repayment tenure are tabled below.

 Type of loan Purpose Repayment Tenure Consumer Loans sanctioned for the purchase of consumer durable and similar household necessities 5 years or 60 months Clean Loans cash loans sanctioned for any personal genuine needs of the customer 5 years or 60 months

## Repayment Schedule of Home Loans in Andhra Bank

Home loans are the long term loans borrowed for the purpose of buying a new house or flat or plot of land or for constructing a new home on the existing plot of land or even for repairs and renovations to the existing home or flat  in any area of the country.

The tenure of such loans is a maximum of 30 years and can be applied by residents and NRIs as well (if eligible). The processing charges for such loans are 0.5% of the loan value with the maximum amount being Rs. 10,000 and there are no prepayment charges for such loans.

## Repayment Schedule of Vehicle Loans in Andhra Bank

Vehicle loans of Andhra Bank can be for the purpose of getting a new car or a used car provided such used car is not older than 3 years. The rate of interest and tenure of the loan is different in each case i.e. if the car is a new or used car. The details of the same are tabled below.

 Type of Vehicle Rate of Interest Tenure New Car RLLR+0.70% 84 months or 7 years Used Car Up to 36 months - RLLR+3.45%Above 36 months up to 60 months - RLLR+3.45% + 0.25% 60 months or 5 years

## Repayment Schedule of Gold Loans in Andhra Bank

Gold loans are the money borrowed by the customers against the gold held by them. Gold is used as collateral for such loans and the purpose of such loans can be either of the following reasons.

• Pure consumption
• Personal
• Business but not for speculative purposes

These loans are in the nature of short term loans and have to be repaid within 1 year or maximum 2 years of availing such loans.

## Repayment Schedule of Education Loans in Andhra Bank

Education loans of Andhra Bank are for pursuing higher education in recognized courses whether within the country or abroad. Customers can get education loan not only to cover the Course fees or tuition fees but such loan will also cover the following components

• equipment essential for the course
• hostel fees
• transportation
• books and stationery
• computer/laptop

The tenure of such loans is the course period and borrows can also enjoy a moratorium on such loans for a maximum period  of 1 year from the date of completion of studies or six months from the date of getting employment, whichever is earlier.

## FAQs

1. For what purposes does Andhra Bank sanction gold loans?

Gold loan of Andhra Bank can be taken for non-agricultural purposes like personal expenses, consumption or for business purposes but cannot be used for speculation.

2. What is the tenure of personal loans of Andhra Bank?

Tenure of personal Loans of Andhra Bank is for 5 years in case of consumer loans and in case of loans for any other purpose i.e. in case of clean loans.

3. What is the tenure of vehicle loans of Andhra Bank?

Vehicle Loans of Andhra Bank can be availed for a period of 7 years in case of new cars or 5 years in case of used cars.

4. What is the customer care number of Andhra Bank?

The customer care number of Andhra Bank is 1800 425 1515.

5. Can a person repay the loan taken on a flexible basis?

Yes. Andhra Bank offers flexibility in loan repayment. Customers can repay the loan in Quarterly/Half yearly/Yearly installments depending on the income flow and occupational status of the borrower.

##### Corporate Agent (Composite)

CreditMantri Finserv Private Limited

##### CIN No

U72100TN2012PTC085154

CA0665

01-Aug-2025