Nature of the Scheme

Cash loan to Individuals

Purpose

To meet any genuine credit requirement of the borrower for personal purpose.

Quantum of Finance

For Salaried Persons

Fresh Finance: 8 times gross salary subject to maximum of Rs. 1,00,000 /- (Salary should be routed through Andhra Bank)

Repeat Finance: 10 times gross monthly salary subject to maximum of Rs. 1,50,000/- (take home pay – 40%)

Take Home pay : After all deductions including the repayment instalment for the proposed loan shall not be less than 40% of gross salary.
For Non Salaried Persons : 2 times average annual proven income (Annual income as average of last three years income shown in IT returns/ assessment orders).
For Pensioners: 8 times of monthly pension. Cap for pensioners is Rs. 1,00,000/- . Maximum age 75 years.
For LIC Agents :

• For those who are income tax assesses: Two times of average renewal commission for the previous three years, subject to a maximum of Rs. 2,00,000/-
• For those who are not income tax assesses: 50% of average renewal commission basing on a statement of income for the previous three years, subject to a  maximum of Rs. 2,00,000/-
• Maximum age : 55 years

Margin

No Margin on clean loans

Repayment

60 months (EMI)

Take home pay

40% after the proposed installment in case of salaried persons.

Co-obligation

A good third party acceptable to the Bank

Security

Nil

Renewal Facility

Renewal facility can be allowed only after 1/3rd of the stipulated repayment period of loans is lapsed and the installments are regular and up to date.