Andhra Bank offers vehicle purchase scheme for women

Andhra Bank has launched a new scheme for the purchase of two or four wheelers exclusively for women called 'AB Vanitha Vahan'.

Speaking at the launch, T S Narayanasami, chairman and managing director of Andhra Bank, said: "The AB Vanitha Vahan scheme offers finance for any salaried, professional and self-employed women having income proof document by the way of income tax or income tax assessment orders."

To avail a four-wheeler loan under the scheme, the gross annual income should not be less than Rs 1 lakh and for a two-wheeler the gross annual income should not be less than Rs 60,000.

According to Narayanasami, for new vehicles 90 per cent of the on-road price that includes invoice, life tax, registration charges, insurance and accessories, if any worth up to a maximum amount of Rs 5,000 or three years gross income -- which ever is lower, will be financed.

The rate of interest on four-wheelers up to 36 months has been reduced from 9.25 per cent to 8.75 per cent and for above 36 months, the rate of interest has been reduced from 9.5 per cent to 9 per cent.

Similarly, the rate of interest up to 36 months on two-wheelers has been reduced from 9.5 per cent to 9 per cent and to 9.5 per cent from 10 per cent for above 36 months.

Another feature that the bank has offered in the scheme is a 0.5 per cent concession in the rate of interest for prompt repayment at the time of closure of the loan account.

"The bank will also offer insurance of loan liability besides extending life insurance for the borrower under the Jeevan Abhaya scheme," he said.

Andhra Bank for the period ending December 31, 2004, financed 10,000 vehicles with a loan portfolio of Rs 61 crore. According to Narayanasami, before the end of the current financial year, the bank expects to disburse Rs 100 crore of fresh loans.

The bank's credit to the women borrowers under various programmes is at Rs 1,043 crore constituting 7.08 per cent of the net bank credit, against the RBI norm of five per cent.