Allahabad Bank Car Loan

Allahabad Bank, a renowned public sector bank in India, has a diverse range of loan products in its line-up. If you are looking forward to owning your dream car anytime soon, you may consider the car loan offered by Allahabad Bank. The bank offers car loans with flexible terms based on the requirements of its customers.

Compare Allahabad Bank car loans

Why Choose Allahabad Bank Car Loan?

With Allahabad Bank, you can enjoy flexible loan tenures and hassle-free EMI deals.

The loan scheme is available for all kinds of customers irrespective of their professions. Some of the notable benefits of choosing Allahabad Bank are listed as follows:

• The loan quantum offered by the bank is determined by the annual salary of the borrower. This way, borrowers can get a loan amount within their repayment capability.
• The bank offers financing for up to 85% of the on-road price of the vehicle. For used vehicles, the agreed purchase price or the vehicle’s market valuation is used as the factor for determining the loan quantum.
• The flexible tenure offered by the bank stretches up to 84 months. Customers can choose the tenure based on their repayment ability.

Fees and charges

The bank charges a prepayment penalty of 3% of the outstanding loan amount. Processing fee on a car loan is waived for employees of Allahabad Bank. The bank does not charge any documentation charges or inspection charges for car loans.

Eligibility for Allahabad Bank car loans

The car loan eligibility criteria may differ according to the type of employment of the applicant:

• A Salaried Person should have a minimum gross monthly income of Rs.25,000.
• An agriculturist must have a minimum of 5 acres of irrigated land holding.
• A businessman/professional and self-employed person must be an IT assessee. IT requirement can be waived if full collateral security is produced.
• Retired individuals drawing a monthly pension of Rs.15,000 and above can apply for car loans from Allahabad Bank.
• A firm or company must be in profit for the past 2 years and the net profit and cash generation should be sufficient to repay the car loan.
• The applicant must be a permanent employee and the car loan should be repaid minimum 3 months before his or her date of retirement.
• Non-salaried persons/retired individuals can repay the loan before reaching 70 years of age.
• Firms and companies must be in existence for minimum 2 years.

Documents Needed to Apply for an Allahabad Car Loan

• Photo ID and age proof
• Signed application form with photograph
• Residence proof
• Last 6 months bank statement
• Documentation for salaried applicants:
• Last 3 months’ salary – slips
• Form 16 or Income Tax Returns
• 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
• Overview of Allahabad bank car loan

FAQs

1. How can I remove the hypothecation on my vehicle after the repayment of loans?

   After the full payment of all car loan EMI dues, the car loan is considered to be closed. Once the payment is complete, you need to get the following things:

   • No-objection certificate from the lender
   • No-objection certificate from the insurer
   • Form 35 duly filled

   All these documents must be submitted to the Regional Transport Office (RTO) to remove the hypothecation on your vehicle.

2. What is the processing time for car loans in Allahabad Bank?

   The bank promises quick processing time for people subscribing to car loans. You can get your approval within a day or two. The loan amount will be disbursed within a week in most cases.

3. Do I need a guarantor to get a car loan from Allahabad Bank?

   For loans under Rs.20 lakh, there is no need for a guarantor to obtain a car loan from Allahabad Bank. The value of the vehicle acts as security against the loan amount. If a non-earning spouse is taking the loan, his/her earning spouse must act as the co-borrower with the bank. However, if the loan amount is more than Rs.20 lakh, one person must act as a guarantor for the loan. Moreover, collateral security must be provided as per the bank norms.

4. How can I apply for a car loan with Allahabad Bank?

   Allahabad Bank offers multiple ways for customers to apply for a car loan. You may visit the official website of the bank at https://www.allahabadbank.in and apply for a car loan. You may also visit the branch office and apply for a loan.

5. Is it possible to sell my car before completing the loan payment?

   No. Ownership transfer is done only after you complete the EMI payments and receive the no-objection certificate from the lender. Till you finish your loan payment, the vehicle will be hypothecated to the lender. Hence, it is not possible to sell your vehicle during the loan tenure.