Andhra Bank Car Loan

The Andhra bank is giving a loan to buy a car to any individual earning a minimum gross income of Rs. 1 Lac. The bank charges 9.40% per annum interest for the loan facility and the loan tenure can range between 12-84 months. The Andhra bank provides car loan upto 85% of the on road price of car for salaried individuals and 80% of on road price for non-salaried, whereas the female applicants can borrow upto 90% of the on-road value of the car.


Andhra Bank is a good fit for you if?

If Your Annual Income is Above Rs. 1 Lac – The Andhra bank provides a car loan to Any individual having minimum gross income of Rs. 1 Lac per annum. Most of the banks have a high criteria for minimum income like Allahabad bank requiring a minimum of Rs. 3 Lacs per annum income to grant a car loan. So the offer of Andhra bank is a good fit for the individuals having lower level of incomes

If You're Looking for Flexible Installments – The Andhra bank is giving you a option of repaying the loan in quarterly, half-yearly and yearly installments depending on the income flow and occupational status of the borrower.

If You're a Women – Andhra bank runs an exclusive car loan scheme for the women borrowers as it provides a loan upto 90% of the on road price of car to any women having a minimum income of Rs. 1 Lac per annum irrespective of their occupation. It also weaves off the processing charges under this scheme for women borrowers.

Andhra Bank Car Loan at a glance

Annual Interest Rate

9.40%

Loan Term

Up to 84 months

Loan Amount

Upto 90% of On-road Price of Vehicle

Pre-Payment Charges

1% of the loan amount

Rs.1,000 to Rs.25,000

Andhra bank provides a car loan to the individuals having a monthly income of at least Rs. 1 lakh per annum. The margin money to be paid by the borrower is 15% in case of salaried individuals and 20% in the case of non-salaried, and only 10% in case of female borrowers. So the bank is providing finance upto 90% of the on road price of car.

The maximum EMI can not exceed 60% of the net salary for salaried individuals and can not exceed 70% of net income in case of non-salaried.

The loan tenure can be upto 84 months depending upon if you are a male or a female applicant, and the bank is providing an option to repay the loan in quarterly, half-yearly and yearly installments depending on the income flow and occupational status of the borrower.The bank charges 1% of the loan amount from a minimum of Rs.1,000 to a maximum of Rs.25,000 as processing fee.

Why Choose Andhra Bank?

Low Income Criteria – The Andhra bank is providing a car loan if your annual income is more then Rs. 1 Lac per annum. This minimum income criteria is quite low if compared with the peers in the industry. As many of the banks have a high criteria of minimum income like Allahabad bank at Rs.3 Lacs per annum and Corporation bank at 1.20 Lacs per annum.

Avail upto 90% Finance – The bank is providing finance upto 85% of the on road price of car depending upon if you are a salaried borrower or not, and upto 90% of the car value if you're a female applicant.

What to watch out for?

Higher Processing Charges – The Andhra bank charges 1% of the loan amount from a minimum of Rs.1,000 to a maximum of Rs.25,000 as processing fee. The peers in the market like Allahabad bank is charging 0.50% upto Rs. 8696 and Corporation bank is charging Nil for the processing of loan.

Guarantor Mandatory – The Andhra bank requires a guarantor mandatorily in order to avail the car loan from the bank.

Compare Andhra Bank Car Loans to Other Banks

Bank Name Andhra Bank Allahabad Bank Corporation Bank

Typical APR

9.40%

9%

8.95% - 10.10%

Loan Term

Upto 7 years

2-7 years

Upto 7 years

Maximum Lending Amount

Upto 90% of on road price

Upto 85% of on-road price

Upto Rs. 1 crore

Processing Fee

1% of loan amount

Rs.1,000 - Rs.25,000

0.50% of the loan amount

Max Rs. 8,696

1% of the loan amount

Min Rs. 1,000

Pre-Closure

1% of the outstanding amount

2.28% of outstanding amount

Nil

The Andhra bank is providing a finance upto 85% of the on road price of car for salaried individuals and 80% for the others. The Allahabad bank provides 90% of on-road price irrespective of the occupation of individual and the Corporation bank provides a finance upto Rs.1 crore. The Andhra bank also levies the condition of monthly EMI not to exceed 60% of the net salary for salaried and 70% of the net income for others.

The repayment tenure is up to 84 months which is similar according to industry peers. The processing of the Andhra bank is between Rs.1,000 to Rs.25,000 while the Allahabad bank is charging a maximum upto Rs. 8,696 and corporation bank is charging 1% of the loan amount.

Am I Eligible?

  • Applicant can be a resident indian or a non-resident indian.
  • Minimum age of the borrower should be at least 21 years at the time of loan application.
  • Maximum age of the borrower should not exceeds 60 years at the time of final repayment.
  • Applicant can be either an individual, a company or a partnership firm.
  • The maximum EMI can not exceed 60% of the net salary for salaried individuals and can not exceed 70% of net income in case of non-salaried.
  • In case of companies/firms, they should have an account with the bank.
  • Applicant must be having minimum gross income of Rs. 1 lac per annum.

Loan Offerings

Loan for 4 Wheelers

  • Andhra bank offers a car loan to any individual having an annual income of more than Rs. 1 Lac under the Loan for 4 wheelers scheme. The salaried individual can avail upto 85% of the on road price of car in the shape of loan; while the other can get upto 80%. Rate of interest charged by the bank under this scheme is 9.40% per annum.The bank charges 1% of the loan amount as processing fee maximum upto Rs. 25,000. The repayment tenure of loan is max. Upto 7 years and you can pay the loan back in the quarterly, half-yearly and yearly installments depending on the income flow and occupational status of the yours.

Loan for 4 Wheelers for Women Borrowers

  • Andhra bank runs an exclusive car loan scheme for the women borrowers as it provides a loan upto 90% of the on road price of car to any women having a minimum income of Rs. 1 Lac per annum irrespective of their occupation. It also weaves off the processing charges under this scheme for women borrowers. The loan tenure ranges between 12 to 72 months under this scheme.
  • The charges in the case of preclosure of loan are 1% of the outstanding amount. The rate of interest remains same @9.40% per annum as in the general 4 wheelers loan scheme.
  • Documents required for Salaried applicants:
    • KYC Documents
    • Income proof
      • Form 16 / letter from Employer
      • Last 6 months salary slip
      • Last one year ITR
    • 3 passport photographs
    • Valid driving license
    • Proforma invoice
    • Any other document which may be required from case to case.
  • Documents required for Self-Employed applicants:
    • KYC Documents
    • 3 passport photographs
    • Income proof
      • Last three years ITR
      • Profit and Loss statement and Balance sheet.
    • Valid driving license
    • Proforma invoice

Andhra Bank Car Loan Rate of Interest

Personal Loan Type Applicable Interest Rate

Loan for 4 Wheelers

9.40% per annum

Loan for 4 Wheelers for Women

9.40% per annum

How do I apply for Andhra Bank Car Loan?

At Paisa

    • Click on ''APPLY NOW'' button
    • Fill the necessary details such as
      • Desired Loan Amount
      • Purpose of your loan
      • Your monthly salary
      • Select whether you are salaried or self-employed
      • Your name, email-id, contact no etc.
    • Click on ''SUBMIT

At Andhra Bank Online Portal

  • You can apply for Andhra bank car loan online through their website by inputting some basic information along with your loan requirements.
    • To apply online for a Andhra bank car loan click here.
    • Select the " Apply now" button under the Apply online retail loan option.
    • Now select the "Retail loan" option and then you will be redirected to another page where you can select the "Vehicle loan" option.
    • Fulfill all the details like your monthly income, loan amount required, purpose and the contact details and press the "Submit application" button.

At the nearest Andhra Bank Branch

  • To locate a branch near you click here. Enter your location/city and you will find a list of the branches available near you.
    • You can visit the nearest Andhra bank branch with the necessary documents and can ask for an application form for car loan.
    • Attach all the necessary documents and re-check the application form for confirmation.
    • Submit the application form along with the documents to the Probationary Officer.

After I Apply?

Check Loan Status Online

  • You can check the status of your loan application online by following the steps given below.
    • To check the status of your loan application online, click here.
    • Click on the " Apply now" button under the Apply Online Retail Loan option.
    • Now click on the "Search" icon under check application heading.
    • Provide your application reference no. and the status of your loan application will be on your screen.

Check Loan Status Offline

  • Through Andhra Bank Customer Care
    • Dial 1800-425-1515 from your registered number.
    • Dial 1 for english, 2 for hindi, 3 for telugu.
    • After selection of language dial 1 for tele-banking services.
    • Now press 0 to talk to the customer care executive with whom you can query about your loan status.

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

1% of the loan amount

Rs.1,000 to Rs.25,000

Foreclosure Charges

1% of the outstanding amount

Part-Payment Charges

1% of the prepaid amount

FAQs

Can I pay the installments of loan quarterly?

Yes Andhra bank gives you an option of paying your loan back in quarterly/ monthly/ yearly installments depending on your income flow and occupational status.

What is the maximum amount that I can borrow?

The andhra bank allows a loan upto 90% of on road price of the car while the maximum EMI should not exceed the 60% of your net monthly income.

Do I need a guarantor for Car Loans?

A Third party guarantee is acceptable to the Bank as co-obligation for the loan.

Is there any exemption on service charges?

As per the current offer, no processing charges applicable on car loans till Dec 31st, 2018.

Do I need to provide any security or collateral to obtain a car loan from the Bank?

Hypothecation of vehicle purchased as security. Hypothecation charge is to be registered in Registration Certificate of the vehicle in favour of the bank and is exempted from registration of charge with ROC.

What are the costs associated with availing of a Car Loan?

The borrower needs to pay administrative charges at the end of every quarter.

Does Andhra bank have any tie-up arrangements with any company and what are the benefits of the same?

Yes, Andhra bank have tie up arrangements with Tata Motors and Maruti Suzuki for four wheelers. Free accessories will be offered exclusively to customers purchasing four wheelers with loans availed from our bank.