Andhra Bank Mudra Loan

Please Note: Union Bank of India is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

 

Andhra Bank offers Mudra loans to individuals and Micro, Small and Medium Enterprises (MSMEs) which are engaged in service, trade or manufacturing sectors. The Andhra Bank Mudra Loan scheme was specifically designed to offer financial aid to small businesses. The maximum loan amount offered is Rs. 10 lakh which can be used for business-related activities, such as meeting capital requirements, managing cash flow, buying equipment/machinery, purchasing goods, hiring staff, paying salaries, etc.

Andhra Bank Mudra Loan – Dec 2022
Maximum Loan Amount	Rs. 10.00 Lakh
Interest Rate	8.20% p.a. onwards
Tenure	3 years to a max. of 5 Years

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Andhra Bank Mudra Loan – Interest Rates & Processing Charges

Andhra Bank Mudra Loan Interest rates and processing charges are:

Category	Shishu	Kishore	Tarun
Rate of Interest	8.20% p.a. onwards	10.25% p.a. onwards
Processing Charge	Waived	50% concession on applicable fees

*0.25% TP for loan period above 36 months and up to 60 months & 0.50% TP for loan period above 60 months

Also Know – What is the interest rate for a Mudra loan? Compare Rates from All Banks & NBFCs

Eligibile Entities

Entities who are in the Non-Corporate Small Business segment (NCSB) can avail this loan. NCSB comprises of Proprietors or Partnership firms. Below mentioned are the entities that are eligible to avail Mudra loan from Andhra Bank:

• Individuals and MSMEs
• Retailers, Traders and Manufacturers
• Small manufacturing units
• Service sector units
• Shopkeepers
• Fruit/vegetable vendors
• Truck operators
• Food-service units
• Machine operators
• Small industries
• Artisans
• Food processors and so on

These business segments could be operational in rural or urban area.

Andhra Bank Mudra Loan – Categories

Mudra loan is classified into three categories based on the amount of loan offered. The three categories and the maximum loan amount that can be attained under them are:

Mudra Loan Scheme	Amount
Shishu	Up to Rs. 50,000
Kishore	Between Rs. 50,000 & Rs. 5.00 Lakh
Tarun	Between Rs. 5.00 Lakh & 10.00 Lakh

• Shishu

Under Shishu scheme of Andhra Bank Mudra Loan applicants can avail up to Rs. 50,000. This amount is beneficial to customers who are just setting up their business. The interest rate charged by Andhra bank is its MCLR which is 8.20% p.a. onwards for Shishu loan scheme.

• Kishore

Kishore scheme is for those customers who require a loan amount over Rs. 50,000 but less than Rs. 5.00 lakh. It is a good option for businesses that are already established and want to expand it. The money can be used to hire more people, install machinery and so on.

• Tarun

Tarun lends the maximum amount of loan money under Mudra scheme. The scheme allows customers under NCSB category to avail a loan up to Rs. 10.00 Lakh. This allows the customer to expand their business rapidly, purchase additional equipment, or meet the demands of growing business.

Andhra Bank Mudra Loan – Tenure

Andhra Bank Mudra loan needs to be repaid within 3 years. However, banks can extend the loan tenure based on an annual review for up to 5 years. The bank will decide the loan tenure on the basis of the amount sought and the cash flow of the business.

Features and Benefits

Andhra Bank Mudra Loan comes with many features and benefits, some of them are:

• Interest rate is 8.20% p.a. onwards
• Collateral-free loans
• Repayment tenure is up to 5 years
• Maximum loan amount offered is Rs. 10 Lakh
• Processing fee is waived for Shishu scheme mudra loan
• 50% concession is provided on applicable processing charges for Tarun and Kishore scheme

Also Read: How to get an MSME Loan?

Documents Required for Loan Application

The documents required to apply for Andhra Bank Mudra Loan are:

• Mudra loan application form with Passport sized Photographs
• Identity, Age, Address and Income Proofs
• Business Address and Vintage Proofs
• Last 1 year ITR and last 12 months’ bank statement
• Quotation of machinery or items that need to be purchased
• Proof of SC/ST, OBC if applicable

Aside from this the following KYC, Know Your Customer, documents are also required:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill (not more than 3 months old), etc.
Income Proof	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.

FAQs

Q. Who can apply for Andhra Bank Mudra Loan?

Ans. Indian citizens who are in MSME (Micro Small Medium Enterprises) can apply for this loan. Moreover, individuals, proprietary concerns, partnership firms, private ltd. companies, public companies, or any other legal form can apply for Andhra Bank Mudra Loan.

Q. What is the maximum amount that one can apply for under Andhra Bank Mudra Loan scheme?

Ans. The maximum loan amount is Rs. 10.00 Lakh under the Tarun scheme of Andhra Bank Mudra Loan scheme.

Q. For the working capital limit can one get the Mudra Card?

Ans. Yes, customers can avail Mudra Card, a debit card under the Rupay Platform. This will greatly benefit customers who seek Andhra Bank Mudra Loan for working capital needs.