|Interest rate||MCLR + 4.0% = 13.00% p.a.||MCLR + 5.0% = 14.45% p.a.|
|Loan Amount||24 times of current Gross Monthly Salary Minimum: Rs.50,000 Maximum: Rs.7.5 lakh||Amount equivalent to annual income as per last Income Tax Returns or Rs.5 lakh, whichever lower|
|Loan Tenure||Maximum: 60 months.||Maximum: 60 months.|
|Lowest EMI||Rs.1,149.20 per month (calculated for the lowest amount taken for the longest tenure on offer at the lowest rate of interest).||NA|
|Processing Fee||1.22% of the loan amount, subject to a minimum of Rs.614.||1.22% of the loan amount, subject to a minimum of Rs.614.|
|Age||Minimum age: 21 years. Maximum age by which loan is to be repaid: 1 year before the official retirement age.||Maximum age: 65 years on the date loan is sanctioned.|
|Prepayment/Foreclosure Charges||2.28% of outstanding balance only in case of foreclosure.||2.28% of outstanding balance only in case of foreclosure.|
Allahabad Bank offers three personal schemes to customers, each designed to meet different requirements. The Bank offers a “New Saral Loan” which can be used to purchase durables, a personal loan for pensioners and a personal loan for doctors. Personal loans offered by Allahabad Bank come with flexible repayment options and competitive interest rates, ensuring borrowers are not burdened by them. Allahabad Bank follows a simple loan application process, ensuring that the needs of a customer are their top priority, making it a popular choice for personal loans.
Allahabad Bank Personal Loan Interest Rates
Allahabad Bank charges different interest rates for different personal loans. The Base rate at Allahabad Bank is 8.95% and is used to calculate the different interest rates. Interest rates for pensioners are among the lowest personal loan interest rates at the bank, at 12.95% per annum. An interest rate of 14.95% per annum is charged on the personal loan scheme offered to doctors and 13.95% per annum on the New Saral Loan. These are the interest rates as of 2015 and Allahabad bank can change them at its discretion.
How to calculate EMI on your Allahabad Bank Personal Loan
Calculating EMI payments are an important part of every loan application, as EMIs enable borrowers to plan their repayment. EMIs on Allahabad Bank Personal loans can be calculated without hassle, thanks to Bankbazaar. Borrowers just need to log on to the website and enter details about their loan, including amount, tenure, processing fees and interest rate. The website does the calculation and displays the result in a simple and easy to understand format.
A systematic breakdown of the entire loan repayment process is provided by an amortization tool, making it an extremely vital link in the process. It indicates the variation between principal and interest after every payment, depicting how much amount is left to be paid after a specific time period.
Example: Miss Rakhi avails a personal loan of Rs 1 lakh from Allahabad Bank at an annual interest rate of 13%. She opts for a repayment tenure of 4 years, which means the EMI comes up to Rs 2,683 per month. The table below highlights the loan repayment timeline which Miss Rakhi can consult in order to repay the loan.
Loan Amortization Table
|Year||Principal paid (Rs)||Interest paid (Rs)||Balance amount (Rs)|
Factors affecting your Allahabad Bank Personal Loan Interest Rates
There are multiple factors which can affect the interest rates you end up paying for a personal loan from Allahabad Bank, some of which are mentioned below.
- Loan tenure – The tenure of a personal loan has a bearing on the interest rates, with loans for a short tenure attracting a higher interest rate compared to loans for longer tenures.
- Relationship with Allahabad bank – Individuals having a good relationship with Allahabad Bank might be in a position to reduce their interest rates, owing to their past actions and personal standing. It is possible for banks to reduce interest rates for valued customers and for those who have displayed great commitment to their payments in the past.
- Employment details – The profession of an individual has a bearing on interest rates, as is visible in the rates charged by Allahabad Bank for different people. Pensioners have a lower interest rate as they are not actively employed and depend on their pension to make ends meet. Similarly the interest rates for doctors will vary compared to interest rates for borrowers from other professions.
- Age – Age can have a bearing on interest rates as youngsters (under 25 years) could be charged a higher interest rate compared to others, owing to their fast paced lifestyle.
Note: Interest rates charged by Allahabad Bank are at their sole discretion and are subject to change.
How CIBIL score affects Allahabad Bank Personal Loan Interest Rate
A CIBIL scores reflects the loan repayment capacity of an individual based on his/her financial past. Allahabad Bank uses this score to determine how creditworthy an applicant is and whether the loan could be repaid on time. A good CIBIL Score is an indicator of a good credit history, improving the chances of an applicant getting a loan approved at favourable interest rates. A borrower with a bad CIBIL score might be viewed as a risky prospect and banks could increase the interest rate to counter any future liability.
Key things to know about Allahabad Bank Personal Loan Interest Rates
- Interest rates charged by Allahabad Bank depend on the base rate in effect. Interest rates for different products are obtained by adding a certain percentage to the base rate, depending on different parameters. For example, the interest rate for pensioners is given by (Base Rate + 3%), giving the final value of 12.95%.
- The repo rate charged by RBI would have a bearing on interest rates at Allahabad Bank, with rates subject to change with any changes in repo rates.
- Allahabad Bank might ask for a collateral against certain personal loans, depending on the borrower and his/financial standing. Such collaterals might help reduce interest rates on certain occasions.