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Andhra Bank Personal Loan Interest Rate

Current Andhra Bank Personal Loan Interest Rate

Last Updated 11th Feb 2021

Interest Rate 11.55% - 13.05%
Tenure Upto 60 months
Processing Fee Case to Case
Loan Amount ₹ 50,000 to ₹ 5 Lakh
Minimum Income ₹ 20,000
Age 21 to 55 years
Prepayment Charges Allowed after 0 EMI's, Nil prepayment charges
Foreclosure Charges Allowed at Nil prepayment charges
  • Current Andhra Bank personal loan interest rate starts at 11.55%.
  • Andhra Bank offers special personal loan rates for borrowers who are existing bank customers or working in a reputed company.

Andhra Bank has merged into Union Bank of India on April 1, 2020. The interest rates of Union Bank of India will now be applicable on Andhra Bank Personal Loan.

Apply for Personal Loan @ 10.40%* Get upto ₹ 1,000* Cashback

Interest Rates on Andhra Bank Personal Loan

Andhra Bank personal loan interest rates depend upon a number of factors such as borrower’s occupation, credit score, employment history, loan requirement, etc. Apart, the Andhra Bank personal loan rates differ across different types of borrowers such as salaried employees, self-employed, pensioners and women borrowers. Andhra Bank offers personal loan to salaried individuals at a minimum rate of 11.55%.

Interest Rates of Andhra Bank Personal Loan Schemes

One of the best ways to assess which personal loan scheme is best, is to assess the rate of interest offered in each scheme. The interest rate of each scheme varies depending upon various factors like, the repayment option, tenure, customer profile targeted by the scheme, etc.

Consumer Loans

  • Consumer Durable Loan can be taken on big purchases of household appliances and consumer durables.
Eligibility:
  • Salaried individuals can avail a loan amount up to 10 month gross salary.
  • For non-salaried professionals,the maximum limit for loan amount is 40% of gross annual income.
Description:
  • You can avail durable consumer loan for a maximum tenure of 60 months.

Andhra Bank loan for Govt Employees & Private Job Employee

While both salaried and self-employed professional can apply for a personal loan, salaried employees can avail Andhra Bank personal loan at a comparatively lower interest rate. This is because salaried applicants have stability in their jobs with a fixed source of income. However, the rates and eligibility criteria for Govt employees and Private Job employees may vary in Andhra Bank. The lowest personal loan rate for private employees is 11.55%.

Andhra Bank Personal Loan rate comparison with other banks

Even though Andhra Bank has some good personal loan schemes, you cannot be sure about the offerings from one bank unless you analyze multiple banks and their offerings.

Particulars Andhra Bank HDFC Bank SBI
Rate of Interest Starting from 11.55% Starting from 10.50% Starting from 9.60%
Loan Tenure 12 - 60 months 12 - 60 months 6 - 72 months
Minimum Age 21 years 21 years 21 years
Processing Fee Case to Case Upto 2.50% Min Rs. 1,999 1.00%
Maximum Loan Amount ₹ 5 Lakh ₹ 75 Lakh ₹ 15 Lakh
Prepayment charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2-4% Not allowed
Pre closure charges Allowed after 0 EMI's, Nil prepayment charges Allowed after 12 EMI's, 2 - 4% Allowed after 6 EMI's, 3%

Andhra Bank Personal Loan Balance Transfer Interest Rates

Andhra Bank personal loan balance transfer facility is ideal for existing personal loan customers, who feel that they are paying high interest to the lender. Through this facility, you can continue your existing personal loan with Andhra Bank at a lower rate of interest. Thus you can switch the lender without closing the loan. Currently Andhra Bank offers the lowest personal loan balance transfer rate of Nil.

Factors Affecting Andhra Bank Personal Loan Rates

When you apply for a personal loan from Andhra Bank, there are various factors which play their part to determine the rate of interest for your loan. Below are the factors which will affect your Andhra Bank personal loan rates:

  • Tenure: The interest rates on personal loans are not entirely dependent on the loan tenure, but it does play a part. Based on the policy of the bank, the interest rate can increase or decrease with respect to a shorter or longer time period.
  • Credit Score: Since a personal loan is an unsecured loan, your credit score carries a lot of weightage in determining the rate of interest on your loan. Thus, make sure you apply for the loan when your score is above 800. If you are applying with a score below 800, then you need to be prepared to accept a higher rate of interest.
  • Income: Income is also an essential factor in determining the rate of your loan. With the higher income, you are likely to get into a lower interest rate bracket and vice versa.
  • Loan Amount: The amount of credit you have applied for also affects the rate of interest. Based on your applied loan amount rate of interest can change beyond what is advertised based on specific categories.
  • Repayment Capacity: Banks can also offer you lower interest rates if you have a good repayment capacity.
  • Existing Relationship: Banks also provide some benefits to the existing customers, especially those who have a good track record with the bank.

How to Get Low Interest Rates on Andhra Bank Personal Loan?

You can get the lowest Andhra Bank personal loan rate, by ensuring the below-mentioned things:

  • Ensure that you are aware of the Andhra Bank personal loan eligibility and documentation requirements beforehand, so that you do not end up paying extra interest as a compensation for any shortcoming.
  • Ensure that you maintain a good credit score above 700, so that the lender is ensured of your repayment capability and credibility.Thus, does not charge a higher rate.
  • Ensure maintaining a low credit utilization ratio that highlights that the ratio of your credit availability to expenses is well maintained.
  • Lastly, ensure that you do not apply for a personal loan with multiple lenders apart from Andhra Bank so that you do not seem credit hungry.

Andhra Bank Personal Loan Charges

Andhra Bank applies various charges on personal loans such as processing fee, part payment charges and foreclosure charges. Processing fee applicable on Andhra Bank personal loan is Case to Case. Andhra Bank offers part payment facility on personal loan after 0 month at Nil prepayment charges charges. Andhra Bank offers foreclosure fee on personal loan to repay the entire amount after 0 month at Nil prepayment charges.

Interest Calculation Method for Andhra Bank Personal Loan

The interest for Andhra Bank Personal loan is calculated based on the following methods:

  • Flat rate method: As per the flat rate method calculator of Andhra Bank personal loan interest rate, the loan rate is estimated on the original loan amount throughout the original loan tenure. Thereby the principal amount for calculation remains the same. This method is also called the fixed method of Andhra Bank personal loan interest calculation.
  • Reducing rate method: As per the Andhra Bank personal loan reducing balance method the interest rate is calculated on the outstanding loan amount. Therefore, the principal component that is paid during the monthly EMI is not chargeable for interest calculation. In this case the outstanding balance and the interest reduces with time, and the interest is charged only on the remaining principal amount.

The functioning of the above-mentioned methods for Andhra Bank personal loan can be understood with the help of the following table:

ParametersFlat Rate Method Reducing Balance Method
Loan amount₹ 4,00,000₹ 4,00,000
Tenure36 months36 months
Rate of Interest12%12%
Total Interest payout₹ 1,44,000₹ 78,296
Monthly EMI₹ 15,111₹ 13,286
Savings₹ 65,704

Andhra Bank Personal Loan Interest Rates Calculation

Let’s say Mr. Maheshwari earns a monthly salary of ₹ 35,000 . His credit score is 810, and he avails the Andhra Bank personal loan of ₹ 4 Lakh for a tenure of 2 years. Given his excellent credit score, the interest rate charged on his loan is 11.55%. Thus, the monthly EMIs he would have to pay are listed in the table below:

Months EMIs Principal Paid Interest Paid Outstanding Balance
Mar 2021 ₹ 18,745 ₹ 14,895 ₹ 3,850 ₹ 3,85,104
Apr 2021 ₹ 18,745 ₹ 15,039 ₹ 3,707 ₹ 3,70,065
May 2021 ₹ 18,745 ₹ 15,184 ₹ 3,562 ₹ 3,54,882
Jun 2021 ₹ 18,745 ₹ 15,330 ₹ 3,416 ₹ 3,39,552
Jul 2021 ₹ 18,745 ₹ 15,477 ₹ 3,268 ₹ 3,24,075
Aug 2021 ₹ 18,745 ₹ 15,626 ₹ 3,119 ₹ 3,08,449
Sep 2021 ₹ 18,745 ₹ 15,777 ₹ 2,969 ₹ 2,92,672
Oct 2021 ₹ 18,745 ₹ 15,928 ₹ 2,817 ₹ 2,76,743
Nov 2021 ₹ 18,745 ₹ 16,082 ₹ 2,664 ₹ 2,60,662
Dec 2021 ₹ 18,745 ₹ 16,237 ₹ 2,509 ₹ 2,44,425
Jan 2022 ₹ 18,745 ₹ 16,393 ₹ 2,353 ₹ 2,28,032
Feb 2022 ₹ 18,745 ₹ 16,551 ₹ 2,195 ₹ 2,11,482
Mar 2022 ₹ 18,745 ₹ 16,710 ₹ 2,036 ₹ 1,94,772
Apr 2022 ₹ 18,745 ₹ 16,871 ₹ 1,875 ₹ 1,77,901
May 2022 ₹ 18,745 ₹ 17,033 ₹ 1,712 ₹ 1,60,868
Jun 2022 ₹ 18,745 ₹ 17,197 ₹ 1,548 ₹ 1,43,671
Jul 2022 ₹ 18,745 ₹ 17,363 ₹ 1,383 ₹ 1,26,308
Aug 2022 ₹ 18,745 ₹ 17,530 ₹ 1,216 ₹ 1,08,778
Sep 2022 ₹ 18,745 ₹ 17,698 ₹ 1,047 ₹ 91,080
Oct 2022 ₹ 18,745 ₹ 17,869 ₹ 877 ₹ 73,211
Nov 2022 ₹ 18,745 ₹ 18,041 ₹ 705 ₹ 55,170
Dec 2022 ₹ 18,745 ₹ 18,214 ₹ 531 ₹ 36,956
Jan 2023 ₹ 18,745 ₹ 18,390 ₹ 356 ₹ 18,566
Feb 2023 ₹ 18,745 ₹ 18,567 ₹ 179 ₹ 0

Check Other Banks Interest Rates

FAQs

What is the lowest personal loan rate in Andhra Bank?

The lowest personal rate offered by Andhra Bank on a personal loan is 11.55%.

What is the current Andhra Bank personal loan interest rate per annum?

Andhra Bank is the one of the leading personal loan lenders in India. Currently, it offers personal loans beginning from 11.55% per annum.

What is Andhra Bank personal loan interest rate for existing customers?

Andhra Bank offers pre approved loans to its existing customers with discounted rates and easier terms and conditions. Andhra Bank personal loan interest rate for existing customers begins from 11.55%.

What are the Andhra Bank personal loan interest rates for salary account holders?

The personal loan rates of Andhra Bank for salary account holders range from 11.55% to 13.05%.

Can I ask for a reduction in the Andhra Bank personal loan interest rate?

You can ask for a reduction in your Andhra Bank personal loan interest rate. However, it depends upon the policy of the bank, whether it allows negotiation or not. Good credit score, high income, and existing relationship with the bank are some of the points which can contribute to the talks going your way.

Is there any need for security or collateral while availing Personal loan from Andhra Bank?

No, there is no need for any collateral or security while availing a personal loan from Andhra Bank. A personal loan is an unsecured loan; thus, it does not require pledging of any asset as security to avail the loan.

How can I close my Personal Loan from Andhra Bank early?

If you want to prepay your entire personal loan from Andhra Bank, then you can do so by making a lump sum payment. However, you should also inquire about the prepayment and foreclosure charges based on the personal loan scheme availed by you, before making any decision.


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