Andhra Bank Business Loans

Are you stressed regarding investment for expanding your business? Do not worry, as business loans are always there for your aid. Propel your business to a new level with the help of Andhra Bank business loans. Andhra Bank offers tailor-made loans with competitive interest rates. It provides special loans to doctors for their immediate requirements, such as to set up their own clinic/nursing home, expand the premise, or buy medical equipment. Also, loans for small businesses are provided based on the requirements of the customers - as term loan, working capital finance, unsecured loans, etc.

Interest Rate and Other Charges

Interest Rate: 9.15% - 16%

Processing Fee: 1%-3% of the loan amount

Types of Andhra Bank Business Loans

Doctor Plus

This loan is to help set up a clinic, X-Ray/pathological/sonographic/any other diagnostic lab; to purchase medical equipment, medical software, or computers for hospital purposes; or for furnishing nursing homes (apart from construction), working capital requirements, or purchasing an ambulance for an existing nursing home.

Eligibility:

• Individuals, firms, limited liability firms, trusts and societies engaged in rendering professional medical services.

• A medical practitioner with a recognized graduate degree in any branch of medicine/surgery/physiotherapy/pathology/dental science/radiology/diagnostic imaging, etc., with a minimum of 2 years of practicing experience.

Features and Benefits:

• Nature of the loan: Term loan

• Maximum loan amount: Rs.20 lakhs 

• No collateral security

• Interest rates and other charges: 50% of the applicable processing charges/upfront fee.

• Repayment tenure of a maximum of 84 months and a holiday of 1 year for principal & interest. 

AB Professional Loan

Andhra Bank Professional Loan is specially designed for professionals to fulfill their business requirements.

Eligibility: 

• Practicing chartered accountants, engineers, architects, valuers, management/financial consultants, cost accountants, company secretaries, etc.

• Constitution: Individuals, companies or societies, firms, limited liability firms; engaged in rendering professional services.

• Should be an assessee under Income Tax at least for the last two years.

• Should be a registered member with their professional Association/Body/Board.

Features and Benefits:

• Nature of facility: Term loan, overdraft, or a combination of both (based on the purpose of credit).

• The maximum amount of the loan is Rs.10 lakhs

• Personal security of the borrower 

• Loan assessment:

  • Term Loan: 75% of the cost of the asset purchased.

  • Working capital limit: 75% of the revenue expenditure of the previous year based on the profit and loss account.

• Maximum 60 monthly installments with a maximum repayment holiday of 1 year for principal and interest.

Interest Rate and other charges:

Interest rate: 13.5%

Processing charges: 0.5% of the loan amount

Other charges: CGTMSE premium charges must be borne by the applicant

Additional facilities:

50% concession in remittance charges that are not exceeding Rs. 1 lakh each, for thrice in a month.

Working Capital Facility

Working Capital Finance

• To meet day-to-day business operations, purchase stocks, and to acquire raw materials.

• Provides Open Cash Credit (OCC) facility for working capital needs.

• Provides finances for receivables to provide liquidity to its customers.

• Secured Overdraft (SOD) is provided against the mortgage of urban and semi-urban immovable properties to meet the working capital requirements of restaurants, hotels, nursing homes, hospitals, etc.

• This facility is made available to traders, real estate builders, contractors, educational institutions, etc. wherein primary security identification is not possible. 

Export/Import Finance

Packing Credit/Pre-shipment Credit: Short-term working capital finance offered to exporters. This is for the purpose of obtaining, processing, manufacturing, and packing of goods.

PCFC: The main objective is to make credit available to exporters in foreign currency at internationally competitive interest rates.

Post Shipment Credit: It offers finance after shipment of goods/services, including purchase/discounting/negotiation of export bills, advance against duty drawback receivables from the Government, advance against bills for collection, etc.

Gold Card Scheme: Gold Card Status is accorded to creditworthy exporters, including those in small and medium sectors with a good track record, who can enjoy a simpler and more efficient credit delivery mechanism.

Working Capital Demand Loan

A working capital demand loan is offered to borrowers whose working capital fund-based facilities exceed Rs.10 crores per annum. It is generally based on the need of the borrowing entity and can be sanctioned to an extent of 80% of the total fund-based WC limits.

Bill Finance

Bill finance facility is offered to the bank’s corporate/non-corporate clients to reduce the mismatches in cash flow and facilitate the smooth running of the business. Besides fund-based bill finance, agency services for the collection of documentary bills/cheques will also be provided.

The fund-based bill finance facilities offer post-sale credit against bills as follows:

• Discounting of usance bills that are drawn under L/C or confirmed order.

• Purchase of bills that are drawn under L/C or confirmed order.

• Purchase of cheques.

• Negotiation of documents under L/C.

Term Finance

Project Finance and Infrastructure Finance

The bank offers project finance to set up new projects or to expand the capacity of existing projects. It offers fee-based technical consultancy services to projects in the course of time.

Keeping in view the pace of infrastructure projects, it provides finance to borrower companies engaged in: 

• Developing, operating, or maintaining infrastructure facilities in any of the following: 

  • a road, a toll road, a bridge, or a rail system

  • a port, inland waterway, airport, or inland port

  • an industrial park or special economic zone

  • a highway project including the activities that are an integral part of the highway project

  • Construction of educational institutions and hospitals. 

  • an irrigation project, water supply project, water treatment system, sanitation and sewerage system, or solid waste management system

  • generation or generation and distribution of power

  • telecommunication services-basic or cellular, including radio paging, domestic satellite service, broadband network, or a network of trunking, and internet services

  • transmission and distribution of power using a network of new transmission or distribution lines

  • Any other infrastructure facility of a similar nature

  • Construction related to projects that involve agro-processing and supply of inputs to agriculture

  • Construction to preserve and store processed agro-products and perishable goods like vegetables, fruits, and flowers.

Term Loans

Term loans are provided to meet capital expenditure needs for the acquisition of fixed assets/the expansion of existing activity/ swapping existing high-cost debt. It provides both funded and non-funded limits under term finance.

• The funded limit is to meet the cost of acquisition of assets, civil works, etc.

• The non-funded limit is to import/purchase machinery on deferred payment of taxes.

• The repayment period extends from 3 years to 15 years, including the gestation period.

Tenure of Term Loans:

• Short term loans: less than or equal to one year

• Medium term loans: more than one year and up to three years

• Long term loans: more than three years

Non-fund Based Advances

Bank Guarantee 

Bank Guarantee is issued for various purposes, based on the nature of the transaction between parties to the contract. Some of the guarantees are listed below :

• Guarantee for earnest money deposit

• Guarantee for advance payment

• Guarantee for bridge finance

• Guarantee for performance contracts

• Guarantee in foreign trade

• Retention Money guarantees

• Mobilization guarantee

• Bid-Bond guarantees

• Repayment guarantees

Letters of Credit

• LOC is offered to corporates, sole proprietary concerns, firms, and individuals who are eligible for the limits.

• Non-fund limits include inland letter of credit, foreign letter of credit, and standby letter of credit.

• Margin and other charges apply depending on the credit rating and creditworthiness of the constituent. 

Forward Contract Limit

Andhra Bank offers a forward contract limit to its clients for covering exchange rate risk arising from various foreign currency transactions. Forward contract is a mechanism through which the exchange rate is fixed in advance for the purchase or sale of foreign currency at a future date.

How to Apply for Andhra Bank Business Loan

Apply for Andhra Bank Business Loan Through a Branch

• Visit the nearest Andhra Bank.

• Request for the Business Loan application form or download it from the site.

• Inquire about the type of loan you want to opt.

• Fill in the form with the necessary details.

• Submit the form along with the required documents.

• After verification, your request will be processed and could be either approved or rejected.

Download Application Form

Application for Andhra Bank business loans can be downloaded here.

Documents Required for Andhra Bank Business Loans

Here is the list of the documents that are required to apply for Andhra Bank Business Loans.

• PAN Card of the individual/company/firm

• For identity proof:

  • PAN card

  • Aadhaar card

  • Voter's ID card

  • Passport

  • Driving license

• For address proof:

  • Voter ID card

  • Aadhaar card

  • Driving license

  • Passport

• Bank statement for the last 6 months.

• Latest ITR along with balance sheet, computation of income, and profit & loss account for the previous 2 years (CA Certified/Audited)

• Form 60 for all co-applicants/applicant/guarantor

• Proof of continuation (ITR/Establishment/Trade license/Sales Tax Certificate)

• Other documents 

  • Sole proprietorship declaration or certified copy of partnership deed

  • Board resolution (Original)

  • A certified true copy of Memorandum and Articles of Association (certified by the director)

EMI Calculator for Andhra Bank Business Loans

The Andhra Bank EMI calculator helps you to find out the EMI amount you need to pay every month. It is very important for you to know the amount of interest that you are going to pay for your loan and plan your expenses accordingly. 

Interest Rates Of Top Banks Offering Business Loans 

Bank	Interest Rate	Processing Fee
SBI	11.20% - 16.30%	2% to 3%
Axis Bank	15.50% - 24%	Up to 2%
HDFC	15.65% - 21.20%	Up to 2.5%
ICICI	12.90% - 16.65%	Up to 2%
Citibank	16% - 18.99%	Up to 2%
Yes Bank	16.25% - 19.99%	Up to 2%
PNB	12.65% - 16.65%	Up to 1.8%
IDBI	13%	1%
Kotak Bank	16% - 19.99%	Up to 2%
IndusInd	14%	Up to 2.5%
Andhra Bank	9.15% - 16%	1% to 3%
RBL	20% onwards	Up to 3%
Canara Bank	10.50% - 18%	Up to 1%
Bank of Baroda	14.10%	Up to 1%

FAQs

Do I get any benefit if I have an Andhra Bank current/savings account?

Yes. Andhra Bank offers special interest rate, and faster processing.

How can I calculate my Andhra Bank Business Loan EMI?

You can calculate your EMI using the  Andhra Bank business loan EMI calculator. Enter the loan amount, desired interest rate, and tenure.

What is the interest rate for Andhra Bank Business Loans?

The interest rate for Andhra Bank Business Loans is 9.15% - 16%.

What is the processing fee for Andhra Bank Business Loans?

The processing fee for Andhra Bank Business Loans is between 1%-3% of the loan amount.