Professionals occupy a premier place in service sector which is contributing a major share in GDP. To faucet this potential segment, Andhra Bank introduces a special scheme named “AB PROFESSIONAL LOAN” from 30.01.2012.

Practising Chartered Accountants, Architects, Engineers, Valuers, Management/ Financial Consultants, Company Secretaries, Cost Accountants etc.,

1. Constitution: Individuals, Firms, Limited Liability firms, Companies or Societies engaged in rendering professional services.
2. Should be an assessee under Income Tax atleast for the last two years.
3. Should be a registered member with their respective professional Association/ Board/ Body.

To establish/ renovate the office premises, Furnishing of office premises, Purchase of Tools, Equipments & Books, expenses relating to travel for professionals, working capital for carrying out day to day operations.

Term Loan, Overdraft or a combination of both depending upon the purpose of credit.

Maximum amount of finance under the scheme is Rs.10 lac.

Personal security of the borrower and Hypothecation of the article purchased with Bank finance

1. Hypothecation of existing movable assets and asset/s purchased out of loan and other current assets.
2. To be covered under CGTMSE compulsorily
3. Post dated cheques for initial 18 months.

1. Term Loan: 75% of the cost of asset purchased.
2. Working Capital limit: 75% of the revenue expenditure of the previous year as per Profit and Loss account.
3. Total exposure within 2 times of average annual income of preceding two years.

Base Rate + 3.25%=14% presently

0.50% of the loan amount.

CGTMSE premium to be borne by borrower.

Maximum 60 monthly instalments with a maximum repayment holiday of 1 year for principal and interest. For working capital limits in the nature of COD - 1 year – eligible for renewal subsequently.

50% concession in remittance charges in remittances not exceeding Rs. 1 lakh each for three times in a month.