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A personal loan is an unsecured loan which means that collateral is not required to avail a loan, which is provided by most banks and Non-Banking Financial Companies (NBFCs) like Indian Overseas Bank(IOB). This is a high-risk loan on the part of the bank or NBFC, due to which interest rates on these loans would be higher than secured loans. But it is also important to note than an unsecured personal is a multipurpose loan and is ideal for immediate cash requirements such as medical emergencies, personal expenses, travel etc., from the reasons we can see that this is for immediate needs and it is important not to get rejected on a

personal loan.

This is the reason why it is best to know the eligibility criteria and the factors that affect your loan application to make sure that your loan doesn’t get rejected as each time your loan is rejected it will adversely affect your credit score. If your credit score reduces a lot, it will become very difficult to get a loan or the loan will be of very high interest rate.

Most banks have strict eligibility criteria which depends on applicants age, location, salary, company of employment, marital status, credit score etc. The ideal customer for the banks is a person with a credit score of at least 750 whom they consider extremely “bankable”.

The lender will also fix your loan maximum and minimum based on your repayment capacity calculated based on your disposable income. It is best to know all these factors before applying for a loan so that your application is not rejected, and you get the best loan offer possible.

Andhra Bank Personal Loan Eligibility Criteria

Andhra Bank Personal Loan Eligibility

There are certain factors or criteria stipulated by banks which needs to be satisfied before loan applications are approved. They are

AgeMinimum 21 years
Maximum 65 years
NationalityIndian
Employment TypeSalaried or Self-employed
Employment statusEmployed/In-business for at least 2 yrs. and at least 1 yr. with current employer/business
Minimum IncomeRs.4000 - Rs.20000 per month (Varies according to area, which is higher in cities)
Maximum Loan AmountRs.70 lakhs (Based on your repayment capability)
TenureMinimum – 6 months
Maximum – 60 months
Credit ScorePreferred 750

These are the general criteria which you need to satisfy for your loan to be approved. These criteria will change from bank to bank.

Documents Required for Andhra Bank Personal Loan

Important documents to be submitted while applying for personal loans

  • 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

Apart from the eligibility criteria there are certain factors that affect your loan application mainly the minimum salary expectation and your loan amount eligibility. They are

  • Location: the place where you stay play an important part in your loan application. This determines the minimum salary amount for you to be eligible for a personal loan. The minimum salary is higher in the cities and more so in the case of metropolitan cities like Mumbai.
  • Income: The higher the income the better loan amount you will get. This also shows that your repayment capability is excellent.
  • Housing situation: Whether you stay in your own house or in a rental property also play a part in determining your loan amount. This is because staying in a rental property reduces the disposable income, which means that your repayable capacity is reduced.
  • Company of employment: Working for a reputed company close to a year could indicate to the lender you are in a stable job, the better the rating of the company the better the personal loan interest rate can be negotiated.
  • Existing credit: If you already have another loan or credit card debt will play a major factor in determining your loan amount and interest rate.
  • Credit history: Your credit history based on which your credit score is calculated is very important. It is a primary factor upon which the loan amount, interest rate and tenure depend upon. If there is any discrepancy in your credit history, there are chances of your loan being rejected outright.

Andhra Bank Personal Loan

Andhra Bank is a medium-sized public-sector bank (PSB) of India, with a network of 2803 branches, 4 extension counters, 38 satellite offices and 3636 automated teller machines (ATMs). The bank now operates in 25 states and three Union Territories. Andhra Bank has its headquarters in Hyderabad, Telangana, India.

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

Andhra Bank Personal Loan Interest Rate:The interest rate for Andhra Bank personal loan is

Loan PeriodFor State and Central Government employees,For private employees, non-salaried class and LIC agents etc 
Up to 36 monthsMCLR (One year) + 2.85%MCLR (One year) + 3.35%
Above 36 monthsMCLR (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 apply for a Andhra Bank Personal online or visit a nearby Andhra Bank branch for the application. You can also download the home loan application form from the Andhra Bank official website, complete the form and submit it to the bank representative. Due to already existing scenario the chances of approval of the application will be high and dispersion of funds fast.

Personal loan Application Process for New Customers

The process to apply for Andhra Bank personal loan when it comes to new customers is same as with existing customers. The only difference is due to lack of previous relationship the loan approval process will take some time – maximum of a week as all the verification process will take place.

You can also check your eligibility for a personal loan through CreditMantri and apply for it.

Andhra Bank Personal Loan Customer Care

In case of any queries regarding Andhra Bank personal loan – be it application process, eligibility criteria, loan approval or loan dispersal can be obtained through Andhra Bank Personal Loan Customer Care toll-free number 1800 425 1515

Ways to reduce your EMIs

  • Check your credit score: Before you even think of going for a loan it is best to check your credit score and credit report. If you have a good credit score (750 and above) then you have paid all your dues on time and are an ideal customer for the bank. This gives you the upper hand in any negotiations to get a better deal on your loan.

    On the other hand, checking your credit score helps to rectify any negative points on your report as a bad credit score is grounds for loan rejection.

  • Negotiate with the bank: If you are in good standing with your bank who knows about all your salary details and expenses then you can negotiate good terms for your loan. Also, the same can be applied for existing lenders or previous lenders where you have paid your dues on time show casing that you are very disciplined when it comes to financial matters, you can negotiate a better deal with them.
  • Opt for a longer tenure: If you have a long loan period, your EMI reduces proportionately as your principal and interest is divided over a greater number of months. However, while the actual monthly outflow will be smaller, you will be paying out EMIs for a longer period and paying interest for a longer period. So, while your monthly burden might be smaller, you might end up paying more over the entire duration of the loan.
  • Making an early prepayment: One way to significantly reduce your EMI for the majority of your tenure is to make an early pre-payment. If you are able to afford the option of prepaying part of your loan, it is better to do it in the early months/years of the tenure so that your principal decreases, thereby saving you interest on later payments.

Paying Your Andhra Bank Personal Loan

The Andhra Bank personal loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Indian Overseas Bank(IOB), Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Andhra Bank account you specify.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Andhra Bank account at your nearest Andhra Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Andhra Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

CreditMantri Personal Loan EMI Calculator

To make life easy for customers and know exactly how much they need to pay every month customers can make use of the CreditMantri Personal Loan EMI calculator

The importance of this is that customers will know how much EMI they will have to pay based on their loan requirement. This helps them to plan accordingly. CreditMantri’s Personal Loan EMI Calculator is probably the easiest way to compare various personal loan offers and choose the loan best suited to your requirements. Using the Personal Loan EMI Calculator gives you a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.

Why Apply for a Personal Loan Through CreditMantri

CreditMantri pre-screens your application and suggests the lender who suits your eligibility and is willing to lend to you. This increases the chances of approval rate and helps you get you the right loan and credit card much easier.

FAQ for Andhra Bank Personal Loan

1. How do I increase my loan amount for Andhra Bank Personal Loan?

Andhra Bank allows top up on personal loan if you are eligible to the new loan amount and also having a good repayment history on the existing loan.

2. Is there any processing fee 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. 

3. How to get Andhra Bank Personal Loan quickly?

Before applying for a personal loan, it is best to look into Andhra Bank Personal Loan eligibility check. All the information can be found in Andhra Bank website and CreditMantri website.

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