Allahabad Bank Personal Loan

Allahabad Bank Personal Loan

Allahabad Bank was founded on April 24, 1865 by a group of Europeans at Allahabad. It is the oldest Joint Stock Bank in the Country. Their main aim was to ensure that the customers of the bank are offered banking services at any time and with access to state-of-the-art technology and to provide them a customer centric service and to emerge as a world-class provider of financial services by making efficient use of their human resource and product innovation.

Allahabad Bank offers personal loans to employees of those organisations whose salaries are disbursed through their bank branches. This is called ‘New Saral Loan’. Allahabad Bank also offers personal loan for pensioners and to doctors and medical practitioners.

Why choose Allahabad Bank Personal Loan?

Personal loan can be taken for meeting the unexpected expenses that might arise due to some unavoidable situations, or it could be to fund a dream wedding, or go on a vacation, or for studies, or to renovate your house. Allahabad Bank offers New Saral Loan to those whose salaries are disbursed through their bank branches.

Allahabad Bank also offers personal loans to pensioners whose monthly pensions are credited to the account maintained with them. Doctors and medical practitioners also get personal loan to meet the expenses of professional requirement.

Features of personal loan from Allahabad Bank

• New Saral Loan:
  Purpose: The New Saral Loan can be utilized for purchasing consumer durable items or two wheeler or any other tangible items and for meeting the domestic, social, religious or other exigency expenses. Though the utilization of the loan must not exceed more than 50% of the loan amount for meeting the domestic, social, religious or other exigency expenses.
  Loan amount: The amount given as loan is 24 times the present Gross Monthly Salary. The maximum limit of the loan is Rs.7.5 lakhs and the minimum loan limit is Rs.50,000. The loan amount is assessed in such a way that the net take home salary after all the deduction of the EMI of the loan is not below 40% of the monthly gross salary.
  Base rate of Interest: The base rate of interest currently is 9.95%.
  Margin: 10% is to be calculated in the basis of the total assets owned or to be purchased by the borrower.
  Repayment: The loan is to be paid in a maximum of 60 EMIs and should be repaid one year before the borrower’s retirement.
  Security: Collateral is the product that is being financed or is existing with the borrower that covers the full value of the loan amount. if the applicant is unmarried, then guarantee of parents is required.
• Personal Loan for Pensioners:
  Purpose: Pensioners are given a personal loan to meet the personal or domestic requirement but not for speculative purpose.
  Loan amount: An amount equal to the 10 month’s pension is given as loan subject to the maximum limit as follows: Pensioners up to the age of 65 years can get a maximum loan of Rs.2 lakhs. Pensioners above the age of 65 can get a loan up to Rs.1 lakh. The minimum loan amount is Rs.25,000. The loan instalment should not exceed 50% of the monthly pension.
  Base rate of Interest: The base rate of interest currently is 9.95%.
  Margin: There is no margin.
  Repayment: The repayment period is maximum of 48 months.
  Insurance: The pensioners get a Group Personal Accident Insurance policy of Rs.2 lakhs irrespective of the loan amount to cover the accidental death.
  Security: Personal guarantee needs to be given. Liquid security is also to be provided to cover the loan amount.
• Personal Loan to Doctors:
  Purpose: To meet any personal purpose including the purpose for meeting the expenses of professional requirements.
  Loan amount: The amount equal to the salary of Rs.5 lakhs, whichever is less. The annual income is accepted as per Income Tax Return submitted to the IT department.
  Base rate of interest: The base rate of interest is 9.95%.
  Margin: There is no margin.
  Repayment: the maximum repayment period is 60 months. The EMIs are to be paid by post-dated cheques.
  Security: No primary security is required, collateral is not mandatory.

Allahabad Bank Personal Loan interest rate

Allahabad Bank’s base rate of interest is 9.95%.

Allahabad Bank’s New Saral Loan’s interest rate is Base rate + 5%. The processing fee is 1.20% of the loan amount, the minimum fee is Rs.1,200. Prepayment penalty is 2.25% of the outstanding balance in case of takeover.

Personal loan to Pensioners interest rate is Base rate + 3%. There is no processing fee charged for personal loan to pensioners.

Interest rate for personal loan to Doctors is Base rate + 5% and the processing fee is 1.20% of the loan amount and the minimum processing fee is Rs.600. the prepayment penalty in case of a takeover is 2.25% of the outstanding balance.

Eligibility criteria for taking a personal loan from Allahabad Bank

Eligibility criteria for taking New Saral Loan:

• The minimum gross monthly salary of the borrower must be Rs.20,000 and he or she must be a permanent employee with a minimum of two years of service in the organisation.
• The organisation must have a strength of minimum 20 eligible employees.

Eligibility criteria for personal loan for pensioners:

• All the state government, central government, teachers must have their monthly pension credited to the account maintained with Allahabad Bank branch.

Eligibility criteria for personal loan for doctors:

• Individual doctors and medical practitioners can apply for the loan.
• The maximum age to apply is 65 years on the date of sanctioning the loan.

You will have to submit the following documents while applying for Allahabad Bank Personal Loan:

• Photo ID and age proof.
• Application form duly signed and attached with your photograph.
• Proof of residence
• Your last 6 months’ bank statement.
• If you are employed, 3 months’ salary slip or Form 16 or Income Tax Returns.
• If you are self-employed, last 3 years’ Income Tax Returns with computation of income and last 3 years CA Certified or audited Balance Sheet and Profit and Loss Account.

How to calculate EMI on Allahabad Bank Personal Loan?

It is important to plan out your finances after taking a loan as then you will also be paying a certain amount towards the EMI. BankBazaar offers you the EMI calculators, and you can choose the tenure that is best suitable for you where you can pay the EMI without having to compromise on the other financial requirements. The EMI calculator will tell you how much EMI you will be paying for a period you have chosen.

The longer the tenure is, the lower is the EMI amount. BankBazaar gives you a breakup of the loan, amortization, repayment details, interest and principal components etc. making it simple for you to understand.

Allahabad Bank Personal Loan FAQs

Am I eligible for Allahabad Bank personal loan?

Allahabad Bank offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for Allahabad Bank personal loan is Rs. 50,000 per month. If you fall into this group, you can definitely apply for a Allahabad Bank personal loan.

How do I repay Allahabad Bank Personal loan?

You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.

What is the maximum loan one can get from Allahabad Bank ?

Allahabad Bank offers personal loans as high as Rs. 75,0000 for successful applicants depending on their financial record and repayment history.

What is the tenure for Allahabad Bank personal loan?

Allahabad Bank offers personal loan with a tenure period ranging from 12 months to 60 months making it suitable for all loan seekers.

• Twitter
• Facebook
• Google
• Tumblr
• Pinterest