Andhra Bank is one of the premier banks offering business loans in India. Among various business loans available in the financial market, Andhra Bank’s Business loan is one of the most flexible and accessible loans that you can choose. The interest rate offered by Andhra Bank’s Finance to MSEs is 10.55% p.a. onwards.
Andhra Bank Business Loan Interest rate & other charges
|Andhra Bank – Finance to MSEs – 2022|
|Interest Rate||10.55% onwards|
|Loan Amount||Minimum – Rs. 10 lakh; Maximum – Rs. 6 crore|
|Repayment Tenure||7 years – Term Loan2 years – Working Capital|
|Processing Fee||As per loan policy guidelines|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges
Applying for an Andhra Bank Business Loan
To get an Andhra Bank Business loan, applicant simply needs to visit the nearest Andhra Bank office and fill in the application form. Below are the types of loan schemes offered, eligibility and documentary requirements, features and benefits of Andhra Bank Business Loans.
Types of Loan Schemes
PSB Loans in 59 minutes: Initiated by Government of India, PSB Loans in 59 minutes as the name suggests can be availed in 59 minutes and the maximum loan amount offered under this scheme is Rs. 5 crore. Applicant can visit the official website of PSB Loans and can apply it online. However, applicant can also contact Andhra Bank as they also provide the same loan to its customers.
CGTMSE: Any micro and small business enterprises except for retail trade can apply for this loan amounting to maximum of Rs. 1 crore. CGTMSE scheme offers loans that are collateral free to existing Micro and Small Enterprises (MSEs).
Composite Loan Scheme: These loans can be availed by Artisan, Village and Cottage Industries and Micro enterprises. The maximum loan amount offered under this scheme is maximum Rs. 1 crore. Collateral or security required is Nil up to Rs. 10 lakh and above this amount depends on the bank’s policy. Repayment period is from 3 years to maximum 10 years.
Doctor Plus: Individuals, LLPs, companies, trusts and societies engaged in providing medical services are eligible for this loan. The maximum loan amount offered is Rs. 20 lakh wherein the repayment tenure is 84 months. All applicants for this loan must be holders of a recognized and legitimate graduate degree in medicine with practice in medicine for at least 2 years. It is a collateral free loan and no third party guarantee is required.
LUCC: Laghu Udhyami Credit Card (LUCC) is a loan scheme that is availed to meet the funding requirements of professional and self-employed people, small businessmen, retail traders, artisans & village industries and Micro and Small Enterprises (MSEs). Applicants should have minimum experience of two years. The maximum loan offered under this scheme is Rs. 10 lakh.
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Documents Required for Loan Application
- Identity Proof
- Proof of Residence
- Business Address proof
- Balance sheets from last 3 years along with income tax and/or sales tax returns
- Memorandum of Association (MoA)
- Rental agreements from physical address of business
- Copy of SSI and MSME registration certificate
- Projections in balance sheets for the next 2 years for working capital limits
- If any takeovers of advances have occurred, sanction letters must be availed from bankers and financial institutions
- Copies of lease deeds for properties that are furnished as collateral
Please Note: Andhra Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Frequently Asked Questions (FAQs)
Q. What is the ceiling for sanction of collateral free loans?
Loans of Rs. 10 lakh are eligible for sanction without collateral security.
Q. What is the maximum repayment tenure for an Andhra Bank Business Loan?
The maximum repayment tenure is 7 years.
Q. What is the processing fee charged by Andhra Bank?
Andhra Bank charges processing fee on business loans from case to case.
Q. What is annual service fees payable?
The annual service fee payable is 0.50% in case of credit facilities up to Rs. 5 lakh.
Q. What if I want to foreclose my loan?
You can foreclose your loan any time without any prepayment charges.
Q. Does my business experience matter?
Yes, you will get loans at lower rates of interest if you possess significant business experience.
Q. What is CLCSS?
Credit Linked Capital Subsidy Scheme (CLCSS) is a scheme for technology upgradation of the Micro and Small Enterprises (MSEs) from manufacturing sector.