Andhra Bank offers Mudra loans to individuals and Micro, Small and Medium Enterprises (MSMEs) which are engaged in service, trade or manufacturing sectors. The Andhra Bank Mudra Loan scheme was specifically designed to offer financial aid to small businesses. The maximum loan amount offered is Rs. 10 lakh that can be used for business-related activities, such as meeting capital requirements, managing cash flow, buying equipment/machinery, purchasing goods, hiring staff, paying salaries, etc.
|Andhra Bank Mudra Loan – 2021|
|Maximum Loan Amount||Rs. 10.00 Lakh|
|Interest Rate||8.20% onwards|
|Tenure||3 years to a max. of 5 Years|
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
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Andhra Bank Mudra Loan – Interest Rates & Processing Charges
Andhra Bank Mudra Loan Interest rates and processing charges are:
|Rate of Interest||8.20% onwards||10.25% onwards|
|Processing Charge||Waived||50% concession on applicable fees|
*0.25% TP for loan period above 36 months and up to 60 months & 0.50% TP for loan period above 60 months
Entities who are in Non-Corporate Small Business segment (NCSB) can avail this loan. NCSB comprise of Proprietors or Partnership firms. Below mentioned are the entities that are eligible to avail Mudra loan from Andhra Bank:
- Individuals and MSMEs
- Retailers, Traders and Manufacturers
- Small manufacturing units
- Service sector units
- Fruit/vegetable vendors
- Truck operators
- Food-service units
- Machine operators
- Small industries
- Food processors and so on
These business segments could be operational in rural or urban area.
Andhra Bank Mudra Loan – Categories
Mudra loan is classified into three categories based on the amount of loan offered. The three categories and the maximum loan amount that can be attained under them are:
|Mudra Loan Scheme||Amount|
|Shishu||Up to Rs. 50,000|
|Kishore||Between Rs. 50,000 & Rs. 5.00 Lakh|
|Tarun||Between Rs. 5.00 Lakh & 10.00 Lakh|
Under Shishu scheme of Andhra Bank Mudra Loan applicants can avail up to Rs. 50,000. This amount is beneficial to customers who are just setting up their business. The interest rate charged by Andhra bank is its MCLR which is 8.20% onwards for Shishu loan scheme.
Kishore scheme is for those customers who require a loan amount over Rs. 50,000 but less than Rs. 5.00 lakh. It is a good option for businesses that are already established and want to expand it. The money can be used to hire more people, install machinery and so on.
Tarun lends the maximum amount of loan money under Mudra scheme. The scheme allows customers under NCSB category to avail a loan up to Rs. 10.00 Lakh. This allows the customer to expand their business rapidly, purchase additional equipment, or meet the demands of growing business.
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Andhra Bank Mudra Loan – Tenure
Andhra Bank Mudra loan needs to be repaid within 3 years. However, banks can extend the loan tenure based on annual review up to 5 Years. The bank will decide the loan tenure on the basis of the amount sought and cash flow of the business.
Features and Benefits
Andhra Bank Mudra Loan comes with many features and benefits, some of them are:
- Interest rate is 8.20% onwards
- Collateral-free loans
- Repayment tenure is up to 5 years
- Maximum loan amount offered is Rs. 10 Lakh
- Processing fee is waived for Shishu scheme mudra loan
- 50% concession is provided on applicable processing charges for Tarun and Kishore scheme
Also Read: How to get an MSME Loan?
How to Apply for Mudra Loan from Andhra Bank?
Customers can apply for Andhra Bank Mudra Loan in a few simple steps. The steps are mentioned below:
- Download the English common loan application / Hindi common loan application form
- Fill the form and submit it at the nearest Andhra Bank branch
Documents Required for Loan Application
The documents required to apply for Andhra Bank Mudra Loan are:
- Mudra loan application form with Passport sized Photographs
- Business Plan
- Identity, Age, Address and Income Proofs
- Business Address and Vintage Proofs
- Last 1 year ITR and last 12 months’ bank statement
- Quotation of machinery or items that need to be purchased
- Proof of SC/ST, OBC if applicable
Aside from this the following KYC, Know Your Customer, documents are also required:
|Identity Proof||Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.|
|Residence Proof||Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill (not more than 3 months old), etc.|
|Income Proof||Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.|
Andhra Bank Mudra Loan – FAQs
Q. Who can apply for Andhra Bank Mudra Loan?
Ans. Indian citizens who are in MSME (Micro Small Medium Enterprises) can apply for this loan. Moreover, individuals, proprietary concern, partnership firm, private ltd. company, public company, or any other legal form can apply for Andhra Bank Mudra Loan.
Q. What is the maximum amount that one can apply for under Andhra Bank Mudra Loan scheme?
Ans. The maximum loan amount is Rs. 10.00 Lakh under Tarun scheme of Andhra Bank Mudra Loan scheme.
Q. For working capital limit can one get the Mudra Card?
Ans. Yes, customers can avail Mudra Card, a debit card under Rupay Platform. This will greatly benefit customers who seek Andhra Bank Mudra Loan for working capital needs.