|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|
The city of Allahabad is the seventh most populous city in the state of Uttar Pradesh. The city is home to Allahabad district administrative quarters. With a total population of 1.1 million people living in the city and 1.21 million living in the metropolitan region, the city is ranked the world’s 130th fastest growing city in the world.
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.
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.
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.
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.
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.
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.
To help individuals meet various needs, Allahabad Bank offers different kinds of personal loans, namely New Saral Loan, Personal Loan to Pensioners and Personal Loan to Doctors. For all new customers, the bank will provide personal loans on the new MCLR based interest rate, while for all existing customers, the personal loans will continue to be available under the Base Rate based interest rate.
The Reserve Bank of India has recently announced a new interest rate system for all new loan borrowers. The new MCLR (marginal cost of funds based lending rate) came into effect from April 1st, 2016 and takes into consideration components like marginal cost of funds, tenor premium, operating costs and negative carry on account of cash reserve ratio (CRR). The following table denotes the MCLR set by the bank with effect from April 1, 2016.
|Tenor||MCLR (in percentage)|
|1 month MCLR||9.35%|
|3 months MCLR||9.40%|
|6 months MCLR||9.50%|
|1 year MCLR||9.60%|
Allahabad Bank will be offering new personal loans based on the new MCLR based interest rate system which came into effect as of April 1, 2016. Currently, the MCLR for one year has been fixed at 9.60% and the same will be applicable on all personal loans in addition to the bank’s mark-up rate.
|Loan||MCLR Based Interest Rate|
|New Saral Loan||MCLR + 4.00 % (a rebate of 0.50% will be provided if the equitable mortgage or liquid collateral of the building or land offered is equal to the amount of the loan)|
|Pensioner’s Personal Loan||MCLR + 3.00 %|
|Doctor’s Personal Loan||MCLR + 5.00 %|
For all its existing borrowers, Allahabad Bank will offer personal loans on the Base Rate system. The bank revised its Base Rate with effect from 5/10.2015. Base Rate is set by the RBI each year and is the minimum rate which the bank is allowed to charge its customers. The Prime Lending Rate is the average interest rate which is charged by banks on loan products. Following is the base rate (BR) and the Benchmark Prime Lending Rate (BPLR) for Allahabad Bank.
|Base Rate (w.e.f 5/10/2015)||Prime Lending Rate (w.e.f 5/10/20165)|
All existing customers of Allahabad Bank can avail personal loans on the Base Rate based interest system. The interest rate on the loans is subject to change with the change in base rate.
Note: The MCLR rates mentioned above are effective as of April 1, 2016. To know the currently applicable interest rates for personal loans, please contact the bank at the time of application. Interest rates for personal loans are subject to change, without prior notice, with change in MCLR / Base Rate.
Eligibility criteria for taking New Saral Loan:
Eligibility criteria for personal loan for pensioners:
Eligibility criteria for personal loan for doctors:
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 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.
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.
Allahabad Bank offers personal loans as high as Rs. 75,0000 for successful applicants depending on their financial record and repayment history.
Allahabad Bank offers personal loan with a tenure period ranging from 12 months to 60 months making it suitable for all loan seekers.
Yes you are, but there are a couple of eligibility criteria’s that you have to meet as a permanent confirmed employee to apply for a personal loan from Bank of Baroda. This includes:
The rate is generally 4.5% but for:
Yes, you can as long as you have proof of experience or service as any one of the following professionals listed here:
Yes, you are. But under the following circumstances:
The general minimum amount that can be borrowed is Rs. 20,000 from Bank of Baroda for personal finance.
The maximum amount that can be loaned is generally Rs.2 lakhs but is subject to conditions such as the profession of the individual. For instance: The max. Limit is Rs. 1 lakh for Civil Pensioners, whereas its Rs. 2 lakhs for Defence Pensioners and Rs. 5 lakhs for Earnest Money Deposit (EMD).
You can take a maximum of up to 36 months to repay your loan amount.
You have to pay 2% of the loan amount as penalty fee for missing a payment due date for their personal loan.
No, you can make prepayments without any extra charges towards the personal loan from this bank.
*This article is provided only for consumer information on an as is where is basis and BankBazaar does not claim or represent to be connected with Allahabad Bank Limited. For further information about any of the products mentioned above please contact Allahabad Bank.
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