Andhra Bank Personal Loan Eligibility

Age of the Applicant

18 to 70 years

Eligible Salary

25,000 per month and above

Work Experience for Salaried

3 years and above

Maximum tenure


Minimum CIBIL Score


Eligibility with Co-applicant

Up to 3 earning family members may be added to get higher loan eligibility

check your eligibility


About Andhra Bank

Andhra Bank can proudly state that it has connections with the Indian independence struggle. Its founder, a famous freedom fighter, Dr. Bhogaraju Pattabhi Sitaramayya, was a multi-faceted genius who helped the bank with his financial expertise.

Andhra Bank is a significant player in the Indian banking industry, as it offers a complete range of banking services that include loans and deposits. The bank places great emphasis on delivering excellent customer service by adopting a perfect balance of technology and human resources.

The bank has more than 2900 branches situated all over India, with more than 50% of them in the rural and semi-urban areas. Andhra Bank has a significant presence in the states of Telangana, Andhra Pradesh, Orissa, and Tamilnad.

The Central Government has merged Andhra Bank and Corporation Bank into Union Bank of India w.e.f. April 01, 2020. The bank with thus attaining the status of the fifth-largest bank in the country.

About Andhra Bank Personal Loan

Andhra Bank offers various kinds of loans, such as home loans, education loans, vehicle loans, Personal Loans, and so on. As far as Personal Loans are concerned, Andhra Bank provides them with as well as without collateral.

The Personal Loans from Andhra Bank come with the following features and benefits:

  • Loans available without any collateral with a specific ceiling
  • If the requirements are higher, Personal Loans are also available with collateral
  • No questions asked policy, where the bank does not ask for the reason when applying for a loan
  • Competitive rates of interest that are at par with the nationalised banks in India
  • Simplified application procedure with the minimum of documentation
  • Relaxed eligibility norms to enable an extensive clientele to apply for the Personal Loan
  • Flexible repayment tenures
  • No penalty on prepayments

Andhra Bank Personal Loan without Collateral - At a Glance

The features of Andhra Bank Personal Loans without collateral are:

Loan Product Ideal for Maximum Loan Rate of Interest Maximum Tenure

Consumer Loan

Purchasing of consumer durables or other household items

75% of the cost of the articles, depending on the income criteria.

12.50% to 13.75%

60 months

Clean Loans

Personal requirements

No maximum limit, depending on the repayment capacity.

11.10% to 12.60%

60 months

Apart from these loans without collateral, Andhra Bank has specific loan products with collateral.

Andhra Bank Personal Loan with Collateral - At a Glance

The features of Andhra Bank Personal Loans with collateral are:

Loan Product Ideal for Maximum Loan Rate of Interest Maximum Tenure

Gold Loans for non-agricultural purposes

Personal requirements

75% of the market value of the gold


One year

Property Term Loan/Overdraft

Personal and business requirements

No maximum limit with a ceiling of 50% on the value of the property

10.15% to 10.65%

15 years

Reverse Mortgage

Supplementary income for the senior citizens

The monthly payment should not exceed 50,000


15 years

Loans Against Rent Receivables

Personal and business requirements

10 Crores

9.80% to 12.50%

10 years

Loan Against NSC, KVP, LIC Policies

Personal requirements

75% of the value of the security

13.05% to 13.30%

60 months

Andhra Bank Personal Loan - How to Apply

Andhra Bank has an extensive network of more than 2900 branches in India. Therefore, a branch of Andhra Bank would be available in almost all the towns, especially in the southern states where the bank has a dominant presence. Customers can approach the respective branch office and apply for the Personal Loan. The bank has simplified eligibility norms that allow a wide range of people to apply. Alternatively, you can also apply online

Andhra Bank Personal Loan Eligibility

Andhra Bank has 7 different Personal Loan products, each of which has distinct eligibility criteria:

Consumer Loans
  • Salaried individuals
  • Pensioners drawing a pension from Andhra Bank branches
  • Other self-employed individuals
  • Other individuals having repayment capacity
Clean Loans
  • Salaried individuals and self-employed persons with sufficient repaying capacity
  • Pensioners drawing pension through Andhra Bank
  • LIC agents
Gold Loans for Non-agricultural Purposes
  • Existing customers of the bank and other individuals who have been appropriately identified as per the KYC and AML guidelines.
Property Term Loan/Overdraft
  • Both resident Indians and non-resident Indians are eligible
  • Age group - 21 to 65 years
  • Individuals and non-individuals are eligible
  • Individuals - Salaried persons, pensioners, self-employed individuals, agriculturists, and others, who are income tax assessess for a minimum of 2 years
  • Non-individuals - Partnership firms, limited companies, and LLPs, who make cash profits for the last 2 years.
  • Non-resident Indians holding a regular job are eligible. However, they do not qualify for the overdraft facility.
Reverse Mortgage
  • Individuals, singly or jointly with a spouse
  • The age of the primary applicant should be a minimum of 60 years
  • The age of the spouse should be at least 55 years of age
  • The property on offer should be self-occupied, self-acquired/inherited
  • The residual age of the property should be a minimum of 20 years
  • Only residential properties are eligible for finance under this product
Loans Against Rent Receivables
  • Individuals and non-individuals are eligible
  • The property should be unencumbered residential or commercial property let out to Government departments, embassies, private and public sector entities, consulate offices, and multinational undertakings
Loans Against NSCs, KVP, and LIC policies
  • All types of individuals in possession of the securities like LIC policies, NSCs, and KVPs

Andhra Bank Personal Loans - Details

Following are the details of Andhra Bank Personal Loans:

Consumer Loans


To purchase consumer durables and other household articles

Quantum of the loan

  • Salaried person - 10 months' GMI
  • Non-salaried person - 40% of gross annual income
  • Pensioners - 4 months' pension

With a maximum of 75% of the cost of the article, whichever is less

Rate of interest

  • Up to 36 months - RLLR + 4.40% = 12.50%
  • Loans > 36 months and <= 60 months - RLLR + 5.40% + 0.25% = 13.75%

Repayment tenure

Maximum of 60 months


Hypothecation of the articles purchased with the bank loan


Spouse, parent, or any third party

Additional security

  • Assignment of LIC policies with surrender value equal to the loan amount
  • Pledge of NSCs and so on.

Documents required

  • KYC documents
  • Income documents like salary slips, IT assessment orders, property statement.
  • Quotation for the articles to be purchased
Clean Loans


Meet any personal requirements

Quantum of finance

  • The net take-home pay of salaried individuals should not be less than 40% of the gross salary.
  • Non-salaried persons - 2 years average annual income
  • Pensioners - 8 times the monthly pension with a maximum of 5 Lakhs
  • LIC agents - IT assesses - 2 times average annual income with a maximum of 2 Lakhs.
  • LIC agents - non-IT assesses - 50% of the average renewal commission with a maximum of 2 Lakhs.

Rate of interest

Salaried customers and pensioners

  • Up to 36 months - RLLR + 3.00% - 11.10%
  • Above 36 months and up to 60 months - RLLR + 3.25% = 11.35%


  • Up to 36 months - RLLR + 3.50 = 11.60%
  • Above 36 months and up to 60 months - RLLR + 4.50% = 12.60%


  • Pensioners - the family pensioner
  • Others - Any third-party guarantor acceptable to the bank
  • LIC agents - Spouse or another family member

Repayment tenure

Maximum 60 months

Gold Loans for Non-agricultural purposes


  • Consumption purposes
  • Meet personal emergencies
  • Not allowed for business or speculative purposes

Quantum of loan

2,560 per gram with a maximum of 75% the market value of the gold

Rate of interest

RLLR + 2% = 10.10%


1 year

Property Term Loan or Overdraft


Meet business or personal requirements

Quantum of Loan

Minimum - 2 Lakhs

Maximum - No limit


50% of the realisable market value of the property

Rate of interest

Overdraft - RLLR + 2.55 = 10.65%

Term Loan

  • Up to 36 months - RLLR + 2.05% = 10.15%
  • Above 36 months and <= 60 months - RLLR + 2.05% + 0.25% = 10.40%
  • Above 60 months - RLLR + 2.05% + 0.50% = 10.65%


  • Overdraft - Maximum 10 years with reducing drawing power by 10% of the limit every year.
  • Term Loan - Maximum of 180 months


Equitable mortgage of property

Reverse Mortgage - AB Anand Jeevan


A supplementary source of income for senior citizens who own self-acquired property.

Quantum of the loan

  • The monthly payments should not exceed 50,000
  • Lump-sum payment allowed for medical treatment purposes - Maximum of 15 lakhs

Rate of interest

RLLR + 1.95% = 10.05%

Repayment tenure

Maximum of 15 years


Equitable mortgage of the property

Loan against Rent Receivables


Business and personal requirements

Quantum of loan

The maximum quantum of loan is 10 Crores

Rate of Interest


Bank Landlords



Up to 36 months

RLLR + 1.70% = 9.80%

RLLR + 1.20% to 2.70% = 9.30% to 10.80%


Above 36 months to 60 months

RLLR + 1.70% + 0.25% = 10.05%

RLLR + 1.20% to 2.70% + 0.25% = 9.55% to 11.05%


Above 60 months

RLLR + 1.70% + 0.50% = 10.30%

RLLR + 1.20% to 2.70% + 0.50% = 9.80% to 11.30%

Repayment tenure

Unexpired period of the lease subject to a maximum of 120 months


  • Assignment of rent receivables
  • Equitable mortgage of property
Loan against NSCs, KVPs, and LIC policies


Meet any kind of emergency

Quantum of loan

75% of the value of the security offered (face value plus accrued interest)

Rate of interest

  • Up to 36 months - RLLR + 4.95 = 13.05%
  • Above 36 months <= 60 months = RLLR + 4.95% + 0.25% = 13.30%


25% of the value of the security

Type of loan facility

Term Loan


Maximum of 60 months

Andhra Bank Personal Loan - How to Calculate the Maximum Eligibility?

Consumer Loans

The maximum eligibility of the consumer loan is 75% of the cost of the articles to be purchased out of the bank loan, subject to:

  • 10 months gross salary for the salaried class
  • 40% of the gross annual income in the case of non-salaried customers
  • 4 months pension in the case of pensioners

Loan or OD against property

The maximum amount of loan is 50% of the realisable market value of the property, subject to:

  • Salaried class - 60 times GMI
  • Other Individuals - 5 times the average gross annual income
  • Non-individuals - 3 times the average yearly total income

Andhra Bank Personal Loans Eligibility - FAQs

What is the maximum amount that a borrower can avail on a Personal Loan from Andhra Bank?

The maximum amount of loan on a clean loan depends on the income and the repaying capacity of the borrower. There is no maximum limit, as such. The only criterion is that the borrower should satisfy the net take-home pay norms.

What documents should the applicant submit when applying for the Personal Loan?

The applicant should provide the self-attested copies of the following documents:

  • Proof of identity - One document out of passport, PAN card, Aadhar card, driving licence and voter's ID card.
  • Proof of address - One document out of passport, Aadhar card, driving licence, voter's ID card, ration card, or any latest utility bill.
  • Statement of account where the salary is credited
  • A minimum of three months' payslips
  • IT returns or assessment order for a minimum of 2 years

Should the person maintaining an account with Andhra Bank submit KYC documents?

Generally, existing customers don't need to submit KYC documents. However, if there are changes such as a residential address, it is essential to submit these documents.

What documents can a pensioner provide as proof of income?

The pension should provide the following papers to prove his/her income:

  • Copy of the pension payment order
  • Statement of the bank account where the pension is credited

Are joint accounts allowed in Personal Loans?

Usually, banks do not allow joint borrowers in Personal Loan accounts. However, they can do so under the following circumstances:

  • Consumer loans - Co-applicant can be the spouse or parent
  • Pensioner Personal Loan - The family pensioner can be the co-applicant or the guarantor
  • Mortgage loan - The co-owners of the property should be co-applicants
  • Reverse mortgage - The spouse should be the co-applicant if the age is more than 55 years

How do you determine the loan eligibility in a Reverse Mortgage facility?

The prime eligibility criterion in the Reverse Mortgage facility is the age of the borrower. The primary borrower should be at least 60 years old. The spouse can join as the co-borrower if he/she is more than 55 years of age.

The property value plays a significant role in deciding the quantum of the loan. Usually, banks do not finance more than 75% of the loan amount. The maximum quantum of the loan in the case of a Reverse Mortgage includes the amount of interest payable to the borrower over the entire tenure.

The maximum monthly payout to the borrower should not exceed 50,000. However, the borrower is eligible to get a lump sum payment up to 15 Lakhs to cater to medical emergencies.

How does the bank recover the loan in a Reverse Mortgage loan?

The Reverse Mortgage loan is payable at the end of the term or on the death of the last surviving borrower. If the borrower is alive on the date of maturity, the bank can extend the maturity if the value of the property allows for the same.

The legal heirs of the borrowers get the first opportunity to adjust the loan and reclaim the property. In case of their inability, the bank can bring the property for sale to recover the loan. The balance remaining after the adjustment of the loan is paid to the legal heirs.

What purposes qualify for the Personal Loan?

The borrower can apply for any personal purpose. Personal Loans are available to cater to all emergencies, including medical, marriage expenses, educational expenses, and so on. The borrower should not use the loan amount for speculative purposes.

What events qualify as speculative purposes?

Investing in shares to gain profit quickly is a speculative purpose. Similarly, investing in bullion is speculative. Similarly, gambling and indulging in similar activities count as risky expenses.

How will be the bank determine the end-use of funds?

The bank cannot determine the end-use of clean loans. However, the borrower has to declare that he/she will not use the loan amount for speculative purposes.

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