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  • Allahabad Bank Home Loan for High Networth Individuals

    India is home to a growing economy, which has resulted in wealth generation across spectrums, raising the overall quality of life and giving birth to High-Net-Worth Individuals (HNIs). Individuals who have an investment capacity of Rs 2 crore and above are considered to be part of this bracket, and while we might think that they have sufficient funds to finance their dreams, there are times when they too need financial aid.

    Allahabad Bank offers a unique housing loan designed to cater to the monetary requirements of these individuals, providing high quantum loans to construct/purchase land to build a house. With the cost of real estate spiralling in the country, this is an ideal tool for members who wish to cash in on the boom, thereby enhancing their wealth.

    Features of Allahabad Bank Housing Loan for High-Net-Worth Individuals:

    Some of the keys features which distinguish Allahabad Bank’s Housing Loan for HNIs from other products are mentioned below.

    • High loan amount – Designed to cater to an elite class, loans ranging between Rs 5 and 25 crore can be availed through this plan, subject to certain conditions.
    • Multipurpose – A loan can be used to either build/construct a home, purchase a plot, renovate an existing property, buy a constructed flat, etc.
    • Flexible repayment – The loan can be repaid through flexible EMIs, with a 7 year repayment period offered by Allahabad Bank.
    • Competitive interest rates – Allahabad Bank charges a competitive interest rate on this loan, making repayment light on the pocket.
    • Processing fee – The processing fee charged on this loan is marginally on the higher side, ranging around 10% of the loan amount.
    • Margin – The margin ranges between 10 and 25% of the loan amount, depending on the amount being borrowed.
    • Security – Security in the form of property papers need to be pledged with the bank in order to avail this loan.

    Eligibility Criteria for Allahabad Bank Housing Loan for High-Net-Worth Individuals:

    HNIs who wish to avail this loan to build/buy a home need to satisfy a few basic eligibility criteria.

    Minimum Age 21 years
    Maximum Age 70 years
    Income Sufficient income to repay the loan, such that EMIs do not exceed 70% of gross income

    Interest Rate Charged By Allahabad Bank:

    Being a high quantum loan, Allahabad Bank doesn’t charge an extremely high rate of interest on it. The interest rate payable by a borrower depends on the Marginal Cost Based Lending Rate or MCLR, which is currently 9.6% per annum.

    An additional 0.5% is added to this MCLR, taking the final applicable interest rate to 10.10% per annum.

    Note: Interest rates mentioned above are as of May 2016 and are subject to change at the sole discretion of Allahabad Bank. Applicants should check interest rates prevailing at the time of application.

    Documents required to avail Allahabad Bank Housing Loan for High-Net-Worth Individuals:

    The following documents need to be submitted by HNIs in order to avail a housing loan.

    • Mortgage papers of the property
    • Valid ID/address proof (PAN card, DL, Passport, etc.)
    • Copy of income proof


    1. Is this loan available only to a certain section of the population?

      This loan caters to the needs of a particular section of the population, offering financial aid to those from the high income category. This being said, individuals who meet the criteria of the bank can avail a housing loan even if they do not belong to the HNI category per se.

    2. Can a joint loan be taken under this scheme?

      Yes, a joint loan can be taken, subject to both borrowers meeting the eligibility criteria established by the bank.

    3. Can different income sources be clubbed to calculate the loan amount an individual is eligible for?

      Yes, borrowers can club the income of their immediate family members, i.e., parents, and children to calculate the amount they are eligible for.

    4. Is there a moratorium period under this loan scheme?

      Yes, a moratorium period ranging between 3 months and 18 months is applicable, subject to the use of a loan (whether to construct a house or purchase a readymade flat).

    5. Within how many years should the loan be repaid?

      Borrowers have a maximum of 7 years within which they are expected to repay the loan completely.


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