Allahabad Bank Personal Loan
A personal loan is a kind of unsecured loan which can be used for any purpose that the borrower deems necessary. An unsecured loan is an umbrella term used for loans which do not require collateral. Banks, credit unions, and other financial institutions offer personal loans on an ongoing basis.
Documentation needed to apply for an Allahabad Bank Personal Loan
- 1. Photo ID and age proof
- 2. Signed application form with photograph
- 3. Residence proof
- 4. Last 6 months bank statement
- 5. Documentation for salaried applicants:
- Last 3 months salary – slips
- Form 16 or Income Tax Returns
- 6. Documentation for self-employed applicants:
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Allahabad Personal Loan Interest Rates
Updated on 13 Feb 2018
| Interest Rate | 13.00% |
| Processing Fees | 1.22% of loan Amount, Minimum Rs.1228 |
| Loan Tenure | 5 years |
| Pre-closure Charges | 2.25% of outstanding balance only in case of takeover |
| Guarantor Requirement | Guarantor Required |
About Allahabad Bank Personal Loan
Allahabad Bank was established on April 24, 1865, by a gathering of Europeans at Allahabad. It is the most established Joint Stock Bank in the Country. Their fundamental point was to guarantee that the clients of the bank are offered saving money administrations whenever and with access to best in class innovation and to give them a client-driven administration and to develop as a world-class supplier of monetary administrations by making effective utilization of their human asset and item advancement.
Allahabad Bank offers personal credits to employees of those associations whose pay rates are dispensed through their bank offices. This is called ‘New Saral Loan’. Allahabad Bank additionally offers individual credit for retired people and to specialists and restorative experts.
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.
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.
