Andhra Bank
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Toll Free Number : 1800 425 1515

 
AB Power Tools (Shakti)
(A scheme to provide adequate financial assistance to the needy artisans and self employed persons to acquire modern power tools)
 
  Objective


To provide Term loans for purchase of Power Tools and need based working capital to the following:

  • Carpenters and Wood Workers
  • Electrician for Servicing & repairs
  • Plumbers for sanitary servicing & repairs
  • Auto-Mechanics for servicing & repairs
 
 Eligibility


All artisans and self employed persons who are engaged in the field of Carpentry & wood works, servicing & repairs of automobiles, electrical and sanitary servicing

  • Preference will be given to the successful trainees who have undergone training in the prescribed disciplines at AB Rural Development institutes; Andhra Bank sponsored EDPs conducted by Industry associations.
  • Clusters of artisans/ self employed persons who have joined to form Self Help Groups.
  • Beneficiaries identified under Central and State Government self employment schemes.
 
   Nature and quantum of loan


Financial assistance is by way of Composite loan. Maximum loan amount is Rs.1 lakh or as per the actual requirement

 
  Margin

10%
 
 
  Security


Hypothecation of Tool Kits/Stock in Trade

 
  Collateral Security & Third party Guarantee


Not required

 
  Repayment

Repayable in 3-5 years in appropriate EMI with 6 months repayment holiday.
 
  Rate of interest*


9.50%

 
  Guarantee


The loans are covered under CGTMSE Scheme. Guarantee fee of 1.00% and Annual Service fees of 0.50% has to be borne by the borrower

 
  Quantum 


20% of the existing fund based limit

 
  Margin


Same as existing margins to present working capital limits

 
  Co-obligation/ Guarantee


Continuation of existing Co-obligation/Guarantee

 
  Security


Primary: Stocks and receivables
Collateral: Continuation of existing collateral securities

 
  Repayment


One year with a provision of moratorium of six months, during which only interest will have to be serviced