Andhra Bank Car Loans

Andhra Bank has an exhaustive list of products including credit cards, gold loans, home loans, auto loans, two-wheeler loans, personal loans, and education loans. Andhra Bank provides car loans for brand new cars and used cars at interest rates ranging from 9.45%-12.2% per annum.

The bank also offers a unique scheme for women borrowers, with varied features. The customers can choose to repay the loan on a monthly, half-yearly, quarterly, or yearly basis based on their income flow. The minimum gross annual income of an individual should be Rs.1 lakh to apply for a loan. If you can't afford to keep paying, you could even transfer the loan to someone else!

mymoneykarma provides you with all the information that you need about Andhra Bank car loans.

Features of Andhra Bank Car Loan

• Car loans are made available for both salaried and self-employed customers.

• Special rates are available for the Andhra Bank account holders.

• The loans are issued to individuals aged 21-65 years.

• The loan-to-value ratio is up to 85% of the on-road price.

• The maximum tenure of the car loan is seven years.

Types of Andhra Bank Car Loans

New Vehicle Loans

The amount of loan is determined based on the repayment capacity of an individual. The maximum permissible EMI shall not be more than 70% of the income for non-salaried class applicants and 60% of the net salary for salaried applicants.

Women subscribers can get 90%  of the on-road price, including tax, registration charges, insurance, and accessories worth Rs.5,000.

Used Car Loans

Andhra bank offers 60% of the garage value, but eligibility is granted on the condition that the car should not be more than three years old.

Interest Rates for Andhra Bank Car Loans

Andhra Bank has several interest rates on offer, ranging between 9.10% – 11.85% as per the category.

                                        New Car Loan                                Used Car Loan

Interest Rate                       9.10%                                                  11.85%

Loan Tenure                 Upto seven years                               Upto five years

Lowest EMI                 Rs. 1,614 per lakh                              Rs. 2,081 per lakh

Loan Amount         Upto 85% of on-road price             Upto 60% of the market value

Prepayment fee                    1%                                                          1%

Eligibility Criteria for Salaried Applicants

• The applicant must be at least 21 years old during the car loan application.

• The applicant must not be above 58 years old at the time of loan maturity.

• The applicant must have at least one year of employment experience with the current employer, and a minimum of 2 years of experience in total.

• The applicant must have a decent credit score

Eligibility Criteria for Self-Employed Individuals

• The minimum permissible age of the borrower to apply for a car loan is 21 years.

• The age of the applicant during loan maturity must not exceed 65 years.

• The applicant must have employment experience of at least three years in the current business.

• The applicant must have a decent credit score

  Eligibility Criteria	Eligibility Details (New Car Loan)
  Age of the applicant	21 yrs - 65 yrs
  Minimum Annual Income	Salaried: 1,00,000 Self Employed Professionals: 1,00,000  Self Employed Businessmen: 1,00,000
  Minimum Credit Score	700 or more
  Loan Period	7 yrs
  Loan to Value Ratio	85% of the on-road value

  Documents Required

  Car loans depends upon various factors, such as salary/income, price of the car model, and the employment profile of the applicant. Apart from these factors, the bank also checks the creditworthiness of the individual.
  To get instant approval from the bank, submitting the right documents is essential. Here is the list of documents that you may require for Andhra Bank car loans:

  • The duly signed application form

  • Any of the following identity proofs:

    • Aadhaar card

    • Birth certificate

    • Class X school leaving certificate

    • Driving license

    • Pan card

    • Passport

    • Voter ID card

  • Any of the following residence proofs:

    • Bank statement

    • Credit card bill

    • Driving license

    • Electricity or water bills

    • Passport

    • Property tax document

    • Ration card

    • Rent agreement

    • Telephone bill

    • Voter ID card

  Additional Documents for Salaried Employees

  • Salary slip for the last three months.

  • Form 16 or IT Returns slips.

  Other documents for self-employed individuals

  • ITR returns and income computation (last three years)

  • CA-certified audited balance sheet 

  • Profit & loss account statement (previous three years)

  Process of Applying for Andhra Bank Car Loans

  The customer can apply for a car loan either by visiting the bank directly, or online. Availing a loan via an online marketplace improves the chances of getting it at the best interest rates, low processing fees, and through special offers in the form of cash backs.
  Once the customer approaches the bank, the loan process will initiate checks on credit score, the property , and documentation. The bank will then give a decision on the loan amount based on the evaluation results.

  Car Loan EMI Calculator

  The Car Loan EMI calculator is a handy tool that determines the monthly EMIs payable to the bank every month. To calculate the EMI applicable on your loan amount, the customer needs to use the sliders to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R). 

  FAQs

• What credit score is needed for an Andhra car loan?

  Generally, Andhra Bank requires a minimum credit score of 700. If your credit score is less than 700, your loan application will most likely get rejected.

• Why has my Andhra Bank car loan application been rejected?

  For an Andhra Bank car loan to be approved, applicants need to meet all the eligibility criteria and upload the required updated documentation within the given time. The applicant should also have a decent credit score,  a good debt-to-income ratio, and no history of defaulted EMI payments in the past. 

• What is the minimum margin levied on car loan schemes in Andhra Bank?

  The minimum margin for each category of applicants is as follows:

  Salaried: 15%

  Non-salaried: 20%

  For pre-owned cars, the minimum margin applicable is 40%.