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Car Loan

About Andhra Bank


Andhra Bank is a public sector bank of India established in the year 1923 and headquartered at Hyderabad. As on 30-09-2016, the Bank has a network of 2803 branches spread across India. Andhra Bank has 4 extension counters, 3636 ATMs and 38 satellite offices. The services and products offered by the bank mainly compromises businesses of Retail, MSME, NRI, Agricultural industries and Corporate. Under the Retail Business, the bank provides DMAT services deposits, insurance, cards, loans and mutual funds to the individual customers. Andhra bank offers, loan syndication, loan advances and project appraisals for its Corporate Business customers. For the business segment and NRI individual, the bank offers loans, investment services, remittance services, and Deposit schemes to all non-residents of the country.


Andhra Bank Car Loan


Andhra Bank is the renowned Public-Sector Bank in India, especially in the southern parts. With high number of customers present in the state of Telangana and Andhra Pradesh in the south of India, the bank offers a wide range of financial products and banking services for customers across various sectors such as MSME, NRI, Retail, Corporate and Agriculture.


Andhra Bank Car Loans are offered at attractive car loan interest rates and competitive terms, benefiting the customers. Financing options for both used as well as new cars are available with suitable tenure to choose from. With financing of up to 90%, Andhra car loans finance up to Rs.50 lacs to salaried as well as the non-salaried, helping easy procurement of a car of your choice and easy payment of the amount of your car finance plan.


Features of Andhra Bank Car Loan:
 

  • Andhra car loan can be availed for both new and second-hand cars
  • Andhra plans offered for women car loan borrowers
  • Repayment tenure of maximum 84 months is applicable on Andhra bank loan for a new car and 60 months for a second-hand car
  • Repayment terms can also be quarterly/half yearly/yearly installment with respect to the income flow and employment status of the borrower
  • Andhra Bank disburse car loans fast
  • Second hand car should not be more than 3 years old
  • EMI on new car loans should be more than Rs.1 lac for salaried individual.
  • 1% of the outstanding loan amount is charged as processing fee for Andhra bank car loan.

Eligibility requirements for Andhra Bank Car Loan

Almost anybody who fulfills the basic car loan eligibility criteria becomes capable of applying for the Andhra Bank Car loan in India. The basic requirements, to take up a car loan from Andhra Bank, are driven by the age, employment status and other demographical factors of the car loan subscriber along with their repayment capacity. Car loan provided by Andhra Bank target the following groups, who are eligible to take an Andhra car loan, include:
 

  • Salaried
  • Self-employed
  • Limited Companies, Firms, Societies and Trusts holding an Andhra bank account.
  • Corporate customers of the Bank

Andhra Car Loan amount eligibility:


Almost any bank would have a pre-set minimum income limit or car loan amount eligibility criteria for availing a loan from them. This is to ensure the repaying capability of the loan borrower. A salaried loan applicant should have a minimum gross monthly income of Rs. 1 lac per annum to avail an Andhra car loan and a non-salaried individual applying for a car loan must have a net profit of Rs. 60 k per annum for standard cars and Rs. 1 lac for premium and mid-sized cars.


Whereas, in case of Women applicant for an Andhra car finance plan, income should be the same amount, that is Rs. 1 lac per annum plus, 50% of the husband's salary will be taken for computing eligibility provided he is a co-obligate.


Other Criteria for Andhra Bank car loan:
 

Eligibility Criteria for Andhra Car Loan for Salaried Individuals:
 

  • The age of the applicant must be a minimum 21 years at the time of car loan application
  • The applicant must not be more than 58 years old at the time of loan maturity
  • The applicant must have an employment experience of at least 1 year in current company and minimum 2 years of employment in total

Eligibility Criteria for Andhra Car Loan for Self-employed individuals:
 

  • At the time of loan application, the minimum required age of the applicant is 21 years
  • Maximum age of the Applicant at the time of loan maturity must not exceed 65 years
  • The applicant must have an employment experience of at least 3 year in the current business

Eligibility for Andhra Car Loan for women borrowers:
 

  • The woman borrower must be permanently employed - salaried, professional or self-employed
  • The applicant should have a valid driving license in their name
  • Salary of the applicant is to be routed through Andhra Bank
  • A Letter of Undertaking must be submitted, from the employee, for recovery
  • Post-dated Cheques at the circumspection of the manager must be submitted to the bank, as a special case
  • In case of P&SE Woman, Post-dated cheques to be obtained by the bank.

Check your Car Loan Eligibility
 

Know Your Eligibility for A Car Loan at PaisaBazaar to get an idea about the eligibility criteria you need to satisfy prior to car loan application.

Quantum of Finance on Andhra Bank car loan

New Vehicle Loans:


Eligible amount is worked out based on the repayment capacity of an individual. The maximum permissible EMI shall not be more than 70% for Non salaried class applicants and 60% of net salary for salaried people.


For women subscribers, 90% on road price includes Life tax, Registration charges, Insurance and accessories worth Rs.5,000, invoice price, or 3 years gross salary whichever is lower.


Used Car Loans:


Andhra bank offers 60% of garage value or Rs.25,00,000 whichever is lower, condition is, the car should not be more than three years old to be eligible for a pre-owned car loan.


For Women borrowers of second-sale cars, the four wheelers must not be more than three years old to avail a used car loan. Thereafter, 60% of garage value or 3 years gross income whichever is lower is levied as the quantum of loan.

Interest Rates on Andhra Bank Car Loan

  • The present rate of interest for Andhra Car Loans is 10.10% (MCLR + 0.50%) for up to 36 months tenure. MCLR is 9.55

Interest rates on a car loan by Andhra Bank are levied as per the idea of Reducing Balance, which would reduce your interest burden substantially as the interest is applicable only on the outstanding principal amount. Existing Andhra Bank Home Loan customers qualify for a reduction of 0.25% on the Andhra Car Loan interest rates. Furthermore, Ex-employees of the bank and applicants from a certain categories or sector of the society can be eligible for Andhra Bank car loan discount as well.


Additional Charges on Andhra Car Loans
 

Fees & Charges

Processing fees

  • No processing fees

Late Payment Penalty

2% per month

Cheque swapping charges

NIL

Legal, Repossession & Incidental charges

NA

Loan cancellation

interest charges from date of car loan disbursal till refund of disbursement amount will be carried by the customer

Administrative charges

Minimum- Rs.50/- & maximum- Rs.150/-

Documents required for an Andhra Bank car loan

Car loan depends up on factors such as salary/ Income of the individual, price of the car model and employment profile of the individuals applying for a car loan. Apart from these factors, banks check the credit worthiness of the individuals. A car loan is an easy and simple process and needs minimum documents for Andhra car loan application. To get an instant approval, submitting the required documents are essential. Given below is the list of required documents for Andhra car loan:
 

  • Andhra car loan application form duly checked and signed
  • Photographed identity proof
  • Aadhaar card
  • Birth certificate
  • Class X school leaving certificate
  • Driving License
  • Pan Card
  • Passport
  • Voters ID card
  • Residence proof (Any one)
  • Bank statement
  • Credit card bill
  • Driving License
  • Electricity or water Bills
  • Passport
  • Property tax document
  • Ration card
  • Rent Agreement
  • Telephone bill
  • Voters ID card
  • bank statement
  • Additional documents for salaried individuals:
  • Last 3 months’ salary
  • Form 16 or IT Returns slips
  • Additional documents for self-employed individuals:
  • ITR returns and Income computation (last 3 years)
  • CA Certified or an Audited Balance Sheet and Profit & Loss Account (last 3 years)

Buying New Car versus a Used Car Loan

Benefits of a new car:
 

  1. Brand new cars come with a comprehensive manufacturer's warranty that generally, last for three years or 36,000 miles while some also go to 10 years or 100,000 miles and covers almost any eventuality.
  2. A new car is likely to have the latest safety, convenience and comfort and advanced features.
  3. You will be the first owner of a new car and therefore, there will be no surprises or doubts regarding mechanical problems or accidents in the past.

Benefits of a used car:
 

  1. Buying a pre-owned car costs significantly cheaper than a new car.
  2. The comprehensive costs and theft insurance amounts attached with a used car are likely to be less.
  3. The rate of depreciation of used cars is generally high in the first two years of new car ownership and will be lesser over time.
  4. A buyer will be able to get a luxury model of a used car for the same price as a new plain Jane version of another car.

Calculating the EMI

Establishing the amount of EMI before availing car loan not only helps in measuring your liabilities additionally, provides guidance for choosing the suitable terms that matches with your budget needs. The ‘Car Loan EMI Calculator’ under the head, ‘Finance Tools’ section of the Paisa Bazaar website will help you calculate your Andhra Bank car loan EMI.


To begin, you will need to keep all details such as the proposed tenure, loan amount, Rate of interest and the processing fee, handy. Use the Sliders to select the Loan Amount and the Tenure. Enter your Andhra Interest Rate and Processing Fee for Andhra bank car loan in the fields and then click “Calculate”. Just these steps, and within a few minutes, an elaborate detail table will be displayed on your screen containing the EMI amount. You can use other tools, such as the eligibility calculator, to understand the loan you are about to take up and make wise, informed decisions.

Car Loan on Paisa Bazaar

PaisaBazaar, a venture of Policybazaar.com compares all the popular loan schemes and lets you compare car loan offers and buy various financial products and services such as credit cards, loans, investment tools etc. You can also apply for an Andhra Car Loan online through Paisa Bazaar. This unbiased loan comparing online portal allows you to do savings on car loans by evaluating the best car loans in India according to your needs based on the important factors such as interest rate, loan amount, repayment options and eligibility criteria. You can select the best car loan offers with the lowest EMI as well as available deals on car loans on PaisaBazaar. It would help you in choosing the potential investors and suitable loan borrowers.

Bank Car Loan FAQs

1. What are the documents required with for Andhra Bank Car Loan application?


A. The documents required to be attached with a car loan application include:
 

  • Valid driving license if the vehicle will be self-driven.
  • Pro format Invoice.
  • Salary Slip
  • IT Returns
  • Assessment Order
  • Documents for KYC Compliance

2. What is the maximum loan amount for car loan to corporate clients and firms?


A. The maximum loan amount for a car loan in case of corporate clients and firms ranges between Rs.25 lac to Rs.50 lac depending upon the dealings with the Bank.


3. Can I avail finance for an old car?


A. Yes, you can avail finance for an old car. But, the car should not be more than 3 years old.


4. How much is the income requirement for a women car loan applicant?


A. The income of a women car loan applicant should be more than Rs. 1,00,000 /- p.a., and 50% of the husband's salary can be added for Andhra Car Loan eligibility, provided he is a co-obligant.


5. Does Andhra Bank provide installment options other than monthly payments as EMI?


A. Yes, the bank does provide other repayment options based on income of the borrower and occupation with terms set to Yearly, Half-yearly or Quarterly options.


6. What is the maximum loan amount offered for pre-owned car loans by Andhra Bank?


A. The maximum loan amount offered on used cars is Rs. 25,00,000 or 60% of the garage value, whichever is lower.


7. What are the for Andhra Bank Car Loan income requirements?


A. Individuals earning minimum Rs.1 lac per annum of minimum gross income are eligible for Appling for car loans offered by Andhra Bank. For business or corporate owners, Rs.25-Rs.50 lakhs income is required.


8. Does Andhra bank offer Pre-approved car loans?


A. No, Andhra bank does not have pre-approval facility on its car loans.


9. Does Andhra Bank avail any processing fees for its Car Loans?


A. Yes, Andhra Bank Car Loans levy processing fees when the loan is sanctioned, whereas, the administrative charges are collected by the bank at the end of every quarter.


10. Can I close my loan account ahead of my due date?


A. Yes, you can repay the loan. However, prepayment charges as applicable will be collected.


11. Where can I get my CIBIL Score?


A. CIBIL scores are credit ratings that are important for loan applications and approvals. You need to buy your score for Rs.500 from the CIBIL website. Scores above 750 have chances of faster loan approvals and better interest rates from any bank.


12. What make of vehicle can I purchase?


A. Finance by Andhra Bank is extended for all makes of cars, also including second hand vehicles which are not over three years old.


13. I am an existing home loan customer with Andhra Bank. Am I eligible for a concession on the Andhra bank car loan interest rate?


A. Yes, Housing loan customers of the bank are eligible for a concession of 0.25% on the existing car loan rate of interest.


14. How do I contact the customer service department of Andhra Bank?


A. You can call on 1800 425 1515 – toll free number of Andhra Bank, for general queries or questions.