Andhra Bank

Years

Apply Andhra Bank Business Loan

About Andhra Bank

Andhra Bank was established in the year 1923 by famous freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya. The logo of the bank is an infinity symbol, which represents the mission of the bank to go to any lengths needed in order to help the customer when in any financial need. Andhra Bank works towards providing a complete spectrum of banking services to make financial assistance simpler for customer and to maximize the value provided to all its stakeholders.

The mission of the bank is to ensure that customers get top notch service through state-of-the-art banking technology and facilities and the best in terms of human resources.

About Andhra Bank Business Loans

Every business constantly requires consistent cash flow in order to keep up the operations. In some cases, delays in receivables or the necessity of additional funds to expand a business requires some external financial assistance.

Andhra Bank provides some of the best Business Loan schemes to customers from different backgrounds. From the most attractive SME schemes to corporate financing, you can get the whole gamet with these loans provided by Andhra Bank. Special subsidies for women and selected special groups are also provided in order to help them pursue their entrepreneurial dreams.

The Business Loans provided by Andhra Bank are affordable and most importantly, fast in terms of their processing time. This helps businesses receive a term loan or cash credit when they are in need. The transparent processing of the loan and easy application makes it one of the most reliable sources to obtain financing for your business.

Features and Benefits of Andhra Bank Business Loans

Andhra Bank strives to provide the best possible products to enhance the value that they provide to their customers. Even their Business Loans are loaded with beneficial features for customers from all business backgrounds as mentioned below:

  • Easy funding to Micro, Small and Medium Enterprises: Andhra Bank provides special schemes and loan plans that are aided by the Government of India to make financing easily available to even SME businesses in the service and manufacturing sectors.
  • Simple application process: The bank will provide you with a detailed checklist to ensure that you are able to complete documentation and necessary formalities correctly. That way, you can reduce chances of any discrepancies in processing in order to avoid any chances of delays in the turnaround time of the loan.
  • Term loan and working capital provided: Term loans for a fixed tenure are provided for setting up or expanding any business. You also have the option of obtaining cash credit or working capital in order to carry out all your business operations smoothly without any financial restrictions.
  • Affordable loans: These loans are provided against MCLR and Base Rates making them some of the most affordable options available to you. The interest rates are also negotiable based on the industry and the background of the applicant.
  • No collateral required: There are special schemes available that are covered by credit guarantees. This means that the applicant can get a loan even without any collateral or guarantor for the loan.
  • Easy repayment terms: You can get up to 10 years to repay the loan. This reduces the burden of the monthly installment that you have to pay against the loan.

Types of Andhra Bank Business Loans

Andhra Bank provides a variety of different loans to enable customers from varied business backgrounds to apply for the loan and avail the benefits. The different types of Business Loans provided are:

Women Empowerment Loans

To help encourage women who wish to set up business and entrepreneurial units, Andhra Bank offers various loans and schemes. The different women empowerment loans provided are:

Name of the Loan

Features and Benefits

Pattabhi Sitraramayya Self Help Business Group Scheme

  • These loans are provided to help make women self-reliant through training activities.
  • The purpose of this loan is to facilitate any income generating activity under agriculture and allied activities or any SME activities.
  • Term loan of 90% of the proposed term investment is available.
  • Working capital of 90% of recurring expenses incurred in the project.
  • A margin of 10% of the project cost to be provided.
  • The rate of interest for cash credit is MCLR+3.50%.
  • The rate of interest for term loan is MCLR+3.50+0.50%.
  • The term loan is repayable in 60-72 months.
  • Cash credit is subject to annual review.
  • Primary security is obtained by hypothecation of assets.
  • No collateral security is required
  • Group Guarantee by all members of the Self Help Business Group must be provided.

AB Mahila Jyothi

  • This loan is provided to finance Self Help Groups involved in Managed Sustainable Agriculture in rural sections of Andhra Pradesh.
  • Rate of interest applicable as per the activity of the SHG.
  • Repayment in 3 dosages. The first and second dosage is repayable in 60 months and second dosage onwards in 96 installments.
  • Hypothecation of standing crops and other assets created from the loan.
  • Collateral security is not required for loans up to 5 Lakhs
  • Collateral not required for any SHG with a good repayment record for up to 10 Lakhs.

MSME loans

In order to support entrepreneurs in Micro, Small and Medium Enterprises, Andhra Bank provides great financing options with low interest rates and even collateral-free credit options. The loans offered to these enterprises are as follows:

Name of the Loan

Features and Benefits

PSB Loans

  • PSB Loans is an online facility that allows in-principal sanctions of MSME loans up to 5 Crores in just 59 minutes.
  • The loan is available in public sector banks
  • After receiving the approval letter, the loan is disbursed within 7- 8 working days.
  • Loans are covered by CGTSME Scheme
  • The rate of interest begins from 8% onwards

MSME-Mitra

  • This is a finance option for any outstanding GST receivables.
  • It is available to any MSME that receives regular fund based working capital from Andhra Bank.
  • 20% of existing working capital or 80% of the input tax credit due, whichever amount is lower, is provided as quantum of loan.
  • The loan should be repaid in a single bullet payment within 8 months.
  • No prepayment charges are applicable
  • Collateral is not required

MSME-Restructuring

  • This loan is provided to restructure any stressed MSME with a maximum exposure of 25 Crores.
  • The loan is provided without any downsizing of assets.

SIDBI-TEQUP Subsidy Scheme

  • This scheme focuses on encouraging MSME Sectors to use energy efficient processes and also improve product quality of MSME sectors.
  • Finance up to the extent of 75% of actual expenditure is provided based on the event or activity.
  • This loan cannot be used for any purchase of assets.
  • Unutilized funds will be refunded

AB Doctor Plus

  • Loan is provided to qualified medical practitioners and doctors to set up clinics, diagnostic labs, purchase of medical software or equipment and purchase of vehicles for nursing homes or hospitals,
  • You can get up to 25 Lakhs in the form of tem loans or Overdraft.
  • 25% margin is required for furnishing or equipment.
  • Working capital of 75% of revenue expenditure of the previous year is provided.
  • No collateral or third party guarantee is needed
  • Post dated checks for the first 6 months to be furnished.
  • The rate of interest is BR+3.25%
  • Repayment period of 84 months available for term loan.
  • Working capital is subject to annual review

Composite Loan Scheme

  • Loans are provided for equipment finance and working capital to artisans, village and cotton industries and micro enterprises.
  • The maximum loan amount provided is 1 Crore.
  • Margin is not required for loan up to 25,000
  • For loans between 25,000 and 25 Lakhs margin of 15% or 25% to be provided.
  • For loans above 25 Lakhs, margin to be provided as per the guidelines of the bank.
  • Primary security is to be provided as per the hypothecation of assets created by the loan.
  • Guarantee is not required for loans up to 10 Lakhs.
  • Repayment tenure of 3 to 10 years with a moratorium of 12 to 18 months is available.

Term Finance

  • Term finance is provided to set up or expand units to fund plant and machinery, land, building and other fixed assets.
  • The fixed assets are provided as primary security.
  • Collateral or guarantee is not required for loans up to 10 Lakhs.
  • Repayment tenure to 3 to 7 years is available
  • The maximum loan amount is 20 Lakhs 

Open Cash Credit

  • Open cash credit of up to 75%-80% in case of stocks and 30% in case of book debts and receivables is provided as working capital.
  • The primary security is provided in the form of receivables and stocks.
  • No collateral security is needed up to 10 Lakhs.
  • Collateral security in the form of fixed assets like land and machinery to be provided for loans above 10 Lakhs.
  • Suitable third party guarantee is needed in case of loans above 10 lakhs.
  • The limit is subject to annual review 

Prime Minister Employment Generation Programme

  • This is a credit linked subsidy scheme for MSME sectors.
  • The idea is to help generate income by setting up micro enterprises and self -employment ventures.
  • The maximum project cost in manufacturing sector is 25 Lakhs and 10 Lakhs in case of service sector.
  • 90% funding is provided in case of general sector and 95% in case of special segments.
  • The rate of subsidy is 15% in urban areas and 25% in rural areas in case of general category.
  • The rate of subsidy is 25% in urban areas and 35% in rural areas for special categories.
  • The repayment tenure is 3 to 7 years

National Equity Finds Scheme

  • Loans are provided to new or existing units under the tiny or small scale sectors or service units.
  • The project cost will not exceed 50 Lakhs including margin and working capital in case of new units and 25 Lakhs in case of existing units.
  • A margin of 10% is mandatory
  • The debt to equity ratio must be 65:35 or 1.857:1
  • The repayment term provided is 7 years excluding moratorium period as decided by the bank.
  • No security is required for these loans

AB Power Tools

  • These term loans are provided to artisans and self-employed individuals in the field of servicing or repair of automobiles, sanitary servicing, carpentry and wood work and electrical servicing.
  • Preference is given to self help groups and individuals who have undergone training under AB Rural Development Institutes.
  • Maximum loan of 1 Lakh is provided as composite loan.
  • Margin of 10% is necessary
  • Security is provided in the form of hypothecation of stocks and tool kits.
  • No collateral or third party guarantee is required.
  • Repayment tenure of 3-5 years with 6 month repayment period is available.
  • Rate of interest is 9.5%.
  • All loans are covered under the CGTSME Scheme.

Technology Upgradation Fund Scheme

  • This loan is provided by the Ministry of Textiles for various sectors of the textile industry to purchase and set up machinery.
  • There is no ceiling on the quantum of loan provided and is completely based on project cost.
  • margin of 15-25% of the project cost should be provided.
  • 1st charge on all fixed assets along with personal guarantee and pledge of promoters holding shares to be provided as security.
  • Repayment period of 7 years along with a moratorium of 1 year is available.

Corporate Finance

Andhra bank also provides financing to MNCs and corporates to improve operations and help them manage operational costs. Here are the different corporate finance options available.

Working Capital Finance

Working Capital Finance

  • This is provided to firms or individuals to run everyday business operations or to purchase any stocks or raw materials. The loan is provided as Open Cash credit or Secured Overdraft.
  • In case of secured overdraft, any immovable property can be used to provide the loan against.

Export import Finance

  • Packing credit facility or pre-shipment facility available.
  • Packing credit may be sanctioned in Foreign currency.
  • Post Shipment credit available
  • Gold card scheme is provided to exporters with a good track record.

Working Capital Demand Loans

  • This loan is provided to borrowers with a working capital based facility that exceeds 10 Crores per year.
  • Funds to the extent of 80% of working capital limit can be provided.

Bill Finance

  • Bill finance is issued in order to help corporates and non-corporates reduce any mismatch in cash flow.
  • Post sale credit is provided against confirmed order, usanceof bills, purchase of cheques and negotiation of documents.

Term Finance

Project Finance and Infrastructure Finance

  • This loan is provided to new projects as well as for expansion of existing projects.
  • It is provided to companies that are engaged in developing, maintaining or operating any infrastructure facility.

Term Loans

  • Term loans are provided to meet capital expenditure or to acquire any fixed assets.
  • Short term loans are provided with repayment tenure of 1 year.
  • Medium term loans are provided with repayment tenure of 1 to 3 years.
  • Long term loans are provided with repayment tenure of more than 3 years.

Other Advances

Bridge Loans

  • These loans are provide against any expected funds such as NCDs, FDOs and ECBs.
  • The loan is offered for a period of 1 year

Advances against Shares and Deposits

  • Loans are provided against debentures, shares, Bank deposits or PSU bonds.
  • The Rate of Interest and Margin are subject to change from time to time.

Advances against rent receivable

  • The loan is provided to any owners of real estate offered to shopping malls or office premises against the rent that is generated.
  • There is no cap on the quantum of the loan.
  • The loan should be repaid within the expiration of the lease period subject to a maximum of 120 months.

Property Over Draft or Property Term Loan

  • This is an OD or term loan provided against property.
  • The minimum loan amount is 5 Lakhs
  • The maximum loan amount permissible for LLPs, Limited Companies and Partnership firms is based on the cash profit of the last two financial years.
  • Margin for OD facility is 50% of realizable market value.
  • Security provided should be any non-agricultural property.

Terms and Conditions of Andhra Bank Business Loans

  • All loan details shall be provided clearly in Hindi, English and regional languages
  • Regular account details shall be provided for all loan accounts
  • If there is any change in the rate of interest or terms of the loan, the borrower will be notified using e-mails, letters or SMS.
  • The changes shall be intimated to the customers within 30 days. In case the changes are not beneficial to the customer, he or she can choose to transfer the loan or close the loan account within 60 days of receiving the notification.
  • All information provided, personal or business details are kept confidential by Andhra Bank
  • The loan details, sanctioned or rejected, will be shared with Credit Information Companies
  • Customers can avail the standard application forms without any additional cost
  • Andhra Bank will provide customers with a detailed checklist of necessary documents to be submitted along with the loan application.
  • Any added information required to complete loan assessment will be requested within 7 days of submitting the application.
  • Processing fees are not applicable on loans below 5 Lakhs
  • No deposits are required for sanctioning the loan
  • A written letter with detailed reasons will be provided in case the loan is rejected
  • Prepayment charges are not applicable on fixed interest loans of up to 25 Lakhs and all loans on floating interest rates.
  • The securities provided to the bank will be released within 15 days of clearing all dues
  • The bank must be informed about any additional credit facility availed by the customer
  • If there are any delays in repayment, reminders will be sent online or through personal visits
  • An approved policy for collection of dues and security repossession will be enforced in case of pending dues and delays in payments.

Documents Required for Andhra Bank Business Loans

Proof of ID

Driver's License, Voters ID, Passport, Adhaar Card, PAN Card

Signature ID

Of all directors, partners and proprietors from the present bank

Proof of Residence

Utility bills, passport, Voter's ID, property tax receipts 

Proof of business address

Rental Agreement and other relevant documents

Proof of category and Minority

If applicable

Proof of income

3 years balance sheet and Sales and IT returns

Articles of Association

Memorandum, partnership deed etc.

Proof of assets

Asset and liability statement from the promoters and guarantors with IT returns

MSME registration

If necessary

Rental agreement with pollution control board clearance

If necessary

Business Related Documents

  • Profit and loss statement, projected balance sheet for two years.
  • Last 3 years balance sheet
  • Profile of business
  • Detailed project report with information on vendors, production, sales etc.
  • Photocopy of all sales deeds
  • Review of accounts including outstanding loans and working capital.
  • Legal opinion for any mortgaged property.

Why Apply for Andhra Bank Business Loan Through MyMoneyMantra?

MyMoneyMantra bridges the gap between customers and financial institutions and makes it easier for them to apply for loans and avail loans faster. There are various benefits of applying for your loans through MyMoneyMantra:

  • You have access to over 90 banks and NBFCs under a single portal, making it easier for you to compare different loan offers and deals to choose one that is suitable for you.
  • By providing details like your income, employment status and purpose of finance, you can get a customized quotation of different loan plans that will suit your requirements best.
  • MyMoneyMantra helps you with the complete loan application process from the time of choosing the right loan plan for yourself, the complete documentation process and also the disbursement of the loan.
  • You have the advantage of positive feedback from more than 40 million customers which is testimony to the excellent services and products offered by MyMoneyMantra.
  • MyMoneyMantra helps you get a faster loan turnaround time with a system that functions 24/ 7 improve the processing time of loans.
  • You have access to over 2500 relationship managers and finance professionals who can give you all the details required for your funding needs.
  • MyMoneyMantra has nationwide reach and has facilitated funding in over 500 cities across India.
  • The services provided by MMM have earned then over 100 banking awards

How to Apply for Loans through MyMoneyMantra?

In order to apply for a loan through MMM, all you have to do is follow these simple steps:

  • Log into their official website
  • Enter details such as your name, income, gender, city of residence, loan requirement, etc.
  • A customized quotation will be prepared for you
  • Once you have chosen the right Business Loan plan, you can submit a request online
  • A representative from MMM will get in touch with you and help you with all the procedures from documentation, submission of the application to disbursal of the loan.

Eligibility Criteria for Andhra Bank Business Loans

The Eligibility criteria for various Business Loans with Andhra Bank are as follows:

Name of the Loan

Eligibility Criteria

Pattabhi Sitaramayya Self Business Group Scheme

  • Self Help Groups that have had satisfactory transactions for at least 5 years.
  • They should have completed 3 years of credit rotations with a good track record.
  • They have to take up some income generating activity that is economically viable at the individual level or group level.

AB Mahila Jyothi Loans

  • The loan is provided to A rated SHG Groups involved in the following activities:
  • Crop production
  • Land development
  • Livestock/ Diary 
  • Working capital is provided to individuals with farms.
  • Loans are also available for debt swapping and consumption.

Other Loans

  • The applicant should be at least 18 years old.
  • Loan is provided to institutions under the Societies Registration Act, Charitable Trusts and Specified Institutions.
  • SHGs that do not have any government aided credit currently.
  • The applicant should have completed education up to Class 8 for loans over 10 Lakhs in manufacturing sector and over 5 Lakhs in the service sector.
  • New projects besides the ones in the negative list of village industries.

How to Calculate EMI on Andhra Bank Business Loans?

To make sure that the loan that you have applied for is affordable, you need to calculate the EMI beforehand. This allows you to plan and manage finances a lot better. There are a few options available to calculate your EMI:

Using Formula

Banks use a standard formula for EMI calculation which is[P x R x (1+R)^N]/[(1+R)^N-1]

Where P is the principal amount, R is the interest rate and N is the repayment tenure.

Using EMI Calculator

With websites like MyMoneyMantra and also the websites of most banks, you have an EMI calculator that uses the formula mentioned above to calculate EMI accurately. These tools are reliable and eliminate any chances of error. Of course, they are a lot easier to use as well.

What to Check After Calculating EMI?

After you have calculated the EMI on your loan, make sure that you check if you have the budget for it after subtracting all deductibles from your income. This helps you plan your finances better and also adjust the repayment tenure in order to make the EMI more affordable.

Andhra Bank Business Loan Charges and Fees

Service

Charges

Processing Fees

  • 400 for every lakh with a minimum amount of 1,000. 
  • For fund based advances with 100% cash margin
  • - 50% of applicable charges subject to a maximum of 10,000.
  • For non fund based loans with 100% cash margin
  • - 25% of charges subject to a maximum of 10,000
  • Processing fees not applicable for MSME loans up to 5 Lakhs.

Unit Inspection Charges

  • For exposure up to 5 Lakhs: 150 per quarter
  • > 5 Lakhs to 50 Lakhs: 500 per quarter.
  • > 50 Lakhs up to 2 Crores: 1,000 per quarter.
  • > 2 Crores up to 5 Crores: 2,500 per quarter
  • > 5 Crores: 4,000 per quarter

Mortgage Charges

  • For exposure up to 10 Lakhs: 5,000
  • > 10 Lakhs to 1 Crore: 10,000
  • > 1 Crore  up to 5 Crores: 20,000
  • > 5 Crores up to 25 Crores: 50,000
  • 25 Crores up to 50 Crores: 1,00,000
  • 50 Crores up to 100 Crores: 2,00,000
  • 100 Crores: 5,00,000

Other Products Offered by Andhra Bank

Housing Loans

Gold Loan

Vehicle Loan

Education Loan

Non Agricultural Gold Loan

Personal Loans

Property Term Loan

Reverse Mortgage Loan

Loans Against Rent Receivables

Demat Accounts

Mutual Funds

AB Health Plus

AB Bancassurance Non Life

AB Arogyadaan Scheme

NRI Loans

NRI Investments

Credit Cards

 

Andhra Bank Business Loan - Customer Care

For any enquiries about Andhra Bank Business Loans, call the toll free number 1800 425 1515.

You can also e-mail your queries to adchelpdesk@andhrabank.co.in         

FAQs

How is an MSME identified?

MSME means Micro, Small and Medium Enterprises that are identified as per the MSMED Act of 2006. These enterprises are classified under service and manufacturing enterprises.

What is the Ceiling for Collateral Free Loans in MSME Loans?

Loans up to 10 Lakhs are provided to small and micro industries without any third party guarantee or collateral. This is applicable even for PMEGP Loans.

What is the purpose of CGTSME?

For any loans that are provided to MSME sectors, besides loans provided in the North Easter Region, loans are covered by the Credit Guarantee Scheme. You need to pay a guarantee fee of 1% for credit facilities up to 5 Lakhs and 1.5% for credit facilities over 5 Lakhs.

What are composite loans?

Composite loans are ones that provide both term loans and working capital in a single window to small and medium enterprises. You can get limits up to 1 Crore with these loans.

Are there any subsidies available with Business Loans?

Subsidies are available with Business Loans that are provided under government aided schemes. The subsidies are extended to general categories and special categories and vary according to urban and rural sector projects.

What is the repayment period on working capitals or cash credit?

Working capital and cash credits are subject to annual review and can be extended accordingly.

Are there any prepayment charges?

For general term loans provided by Andhra Bank, there is a prepayment fee of 2% of the outstanding amount which is levied. However, for MSME loans, there are no prepayment charges for loans up to 25 Lakhs on fixed interest rates and all loans provided on floating interest rates.

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