Andhra Bank
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Fair Practice Code
  The Fair Practices code applies to the following areas

  •  Application for loans and their processing.
  • Loan appraisal and terms/ conditions
  • Disbursement of loans including changes in terms and conditions.
  • Post disbursement supervision.
  • Other general Provisions.
  Applications for loans and their processing

  • All Loan application forms in respect of all categories of loans irrespective of the amount of loan sought by the borrower would include information about the fees/charges, if any, payable for processing, the amount of such fees refundable in the case of non-acceptance of application, prepayment options including additional charges/interest payable for such prepayment is made available in the application.
  • Standardized application forms for priority sector loans up to Rs.2.00 lacs, depending on the segment to which the borrower belongs, will be made available to the applicants on a request at free of cost, along with the schedule of fees and charges etc.
  • Receipt of completed application forms will be duly acknowledged mentioning therein the time frame within which loan applications will be disposed off.
  • The applicant would be intimated on additional details/ documents if any, required within a reasonable period of time.
  • The Bank  should convery in writing, the main reason/reasons which, in the opinion of the bank after due consideration, have led to rejection of the loan application within stipulated time frame, to all categories of loans irrespective of any threshold limits, including credit card applications
  Loan appraisal and terms/conditions

  • Loan application submitted by the borrower will be processed as per bank's policy guidelines. Margin and security stipulation is not taken as substitute for due diligence on credit worthiness of the borrower.
  • The sanction of credit limit along with the terms and conditions thereof will be conveyed in writing and borrower's acceptance of  such terms and conditions will be obtained in writing.
  • The terms and conditions and other caveats governing credit facilities as have been agreed upon by the bank and borrower would be reduced in writing duly certified by the authorized official of the bank. A Copy of loan documents, along with a copy of all relevant enclosures quoted in the loan agreement will be made available to the loan applicant.
  • The loan agreement stipulate, as far as possible, that credit facilities are solely at the discretion of the Bank, approval or disallowance of facilities, such as, drawings beyond the sanctioned limits, not honouring cheques issued for the purpose other than specifically agreed to in the credit sanction and disallowing drawing on a Borrowal account on its classification as a non-performing asset or on account of non-compliance with terms of sanction.  The bank does not have an obligation to meet further requirements of the borrowers on account of growth in business etc., without proper review of credit requirements.
  • In case of lending under consortium arrangement, the participating banks would evolve the timeframe to complete appraisal of the proposal and the decision on financing or other wise shall be communicated within a reasonable time.
  Time frame fixed for decision on credit proposals

Proposals under Branch Powers Shall not be more than one week
Proposal falling under the powers of Zonal Office Shall be given within two weeks
Proposals falling under the powers of Head Office Decision shall be given within 30 days from the receipt of the proposal at the branch for the accounts falling under the powers of Chairman & Managing Director and below. For the accounts falling under the powers of Management Committee, decision shall be given within 45 days.

  Time norms for disposal of Applications: Priority Sector Advances

Loans upto Rs.25,000 Fortnight
Loans above Rs.25,000 8-9 weeks
Upto Rs.25,000 2 weeks
Upto Rs.5 lac 4 weeks

  Disbursement of loans including changes in terms and conditions

  • Timely Disbursement of loans sanctioned would be ensured on total compliance of terms and conditions including execution of loan documents governing such sanction.
  • Any change in the terms and conditions, including interest rate and service charges etc., will be informed to the borrowers.
  • Changes in interest rates   and  charges  are to be  effected only prospectively.
  Post Disbursement supervision

  1. Post disbursement supervision, particularly in respect of loans upto Rs.2 lacs, would be constructive with a view to taking care of any genuine difficulties that the borrower may be facing.
  2. Before taking a decision to recall/accelerate payment or performance under the agreement or seeking additional securities the Bank would give reasonable notice to the borrower.
  3. All securities pertaining to the loan would be released on receipt of full and final payment of the loans subject to any legitimate right or lien for any other claim that the Bank may have against the borrowers. If such lien or right of set off is to be exercised, borrowers would be given due and proper notice with requisite details.

  • The Bank would restrain from interference in the affairs of the borrower except for what is provided in the terms and conditions of loan sanction documents (unless new information, not earlier disclosed by the borrower, has come to the notice of the Bank as lender).
  • Bank will not discriminate on the grounds of gender, caste or religion in its lending policy and activity.  However, this does not preclude branches from participating in credit linked schemes framed for weaker sections of the society.
  • There would not be any undue harassment by persistently bothering the borrowers at odd hours, use of muscle powers for recovery of loans.
  • In case of request for transfer of borrowal accounts, either from the borrower or from a Bank/Financial Institution, the Bank's consent or otherwise shall be conveyed within 21 days from the date of receipt of request.

In case of any complaint/grievance, the applicant/borrowers will have to inform in writing the concerned branch. The Branch Officials shall immediately take up the matter for redressal.
  Grtevances Redressal Mechanism

All disputes arising out of the decisions of branches/Controlling Offices in relation to 'Credit' shall be heard and disposed off at least at the next higher level. Therefore, the following 'Grievances Redressal Mechanism' is put in place.

Decision Level

Redressal Level
Branch Zonal Office (Second Level Official)
Zonal Office (Second Level Official) Zonal Office first level Official
Zonal Office (1st Level Official AGM/DGM) H.O.
Zonal Office (1st Level Official-- GM) GM (CR) AT H.O. Executive Director
Executive Director CMD


Management Committee (MC)