Andhra Bank
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Toll Free Number : 1800 425 1515

 
Term Finance
 
  Purpose


For setting up new units/ Increasing the capacity of existing units/ Diversification/Modernization.

 
  Assessment of limit

Based on Technical viability and economic feasibility of the project to service the debt
 
  Components eligible for finance

Land, Building, Plant & machinery and other fixed assets with suitable margins. 
 
  Security

Primary: First charge on assets created out of Term loan.

Collateral: No collateral for credit limits upto Rs.10 lakhs in case of stand alone Term loan/Composite loan.

For credit limits above Rs.10 lakhs as per guidelines of the Bank
 
  Co-obligation/ Guarantee


No third party guarantee for credit limits upto Rs.10 lakhs in case of stand alone Term loan/Composite loan.

For credit limits above Rs.10 lakhs as per guidelines of the Bank
 
  Repayment


5-7 years excluding holiday period.

In case of schemes formulated by RBI/ Govt.of India the repayment schedule shall be as per the schemes formulated.
 
Standby Term Loan
 
  Purpose

For acquiring additional machinery like, Lathe machines, Generator, Balancing equipment,Vehicles etc
 
  Eligibility

“A” and above rated MSME borrowers satisfying the availability of long term funds for repayment of the loan
 
  Quantum  of finance

20% of the Fund based limits(Term loan & Working capital) subject to a cap of Rs.20 lakhs
 
  Security

Primary: Assets to be purchased out of the loan
Collateral: Existing collateral securities continue
 
  Co-obligation/ Guarantee

Existing Co-obligation/third party guarantee continue
 
  Validity

The sanction will be in force upto due date of regular working capital limits, where working capital limits are existing or For a period of one year from date of sanction in case of stand alone Term loan
 
  Repayment

Maximum 5 years repayable in Monthly/quarterly installments