Allahabad Bank offers a plethora of loans based on borrower’s needs and requirements. Allahabad Bank Property Loan is one of the loans available at the bank against an applicant’s property. The loan allows applicants to take this loan under the scheme against their property. Apart from individuals, even companies, societies or trusts are eligible to apply for this loan.
The Allahabad Bank Property Loan can be availed by:
- Individuals including employed, self-employed or professionals, singly as well as jointly can avail this loan.
- Agriculturist or companies or firms or trusts or societies that are registered under the Society Act, are also eligible.
- Loan is granted to societies and trusts only for activities that are considered as society or trust deeds.
- HUFs are not eligible for the loan.
Allahabad Bank Property loan Eligibility:
There are certain set of criteria set by Allahabad Bank that need to be met in order to be eligible for the property loan. The criteria can be categorized into three types of specific eligibility:
- If an applicant is an individual, the minimum age should be 21 years, while the maximum age should be 70 years when the loan gets sanctioned.
- If the loan is being applied for, by companies or trusts or societies, the organization should be a minimum of 5 years old, implying that they are eligible to take this loan 5 years after the formation or incorporation of their company. The company or organization cannot avail this loan at any point before the completion of 5 years.
- The minimum income of an individual to meet the eligibility criteria to avail a loan under this scheme is Rs.1.20 lakh.
- When one or more individuals are coming together to take a loan as joint borrowers, Allahabad Bank calculates the quantum of the loan based on the total annual income of the borrowers, by adding them all.
- In case a firm or a company wants to avail the property loan, the loan amount is finalised depending on the net cash generated by the organization, keeping back depreciation in mind as well. The repayment capacity of the firm is also considered in this process. The income is as per ITR of the previous financial year or the audited balance sheet.
- If income is from a different source, personal income of partners or proprietors is considered in case of firm, while personal income of directors is added in case of company.
Nature of the Property:
- The property in question should be in the name of the borrower.
- The property, whether residential or commercial, should be free from all liabilities and litigation.
- It should be situated at a good residential area or at a business centre.
- The property loan cannot be granted if the property is proposed for construction or development for sale purposes.
- The Allahabad Bank Property Loan cannot be availed against property of agricultural nature.
- The property loan cannot be availed for loan against an open loan unless the land is within a residential or commercial area, is easily identifiable, marketable and demarcated.
- The loan is not granted to borrowers against a partition deed.
Features of the Allahabad Bank Property Loan:
Allahabad Bank calculated an applicant’s repayment capacity from the net income or take home salary earned per month, considering all EMIs both old and new. The repayment capacity should not be below 40% of the applicant’s monthly gross income.
- Allahabad Bank provides the property loan worth a minimum of Rs.5 lakh and a maximum of Rs.200 lakh.
- If the loan applicant is a salaried individual, the maximum loan that can be granted against property loan is 36 times the borrower’ monthly income.
- If borrower is an agriculturist, the maximum loan amount that can be availed from the bank is three times the net yearly income. In such a case, the income is assessed on the produce’s value minus the standard cost of production (As set by NABARD or DLCC at regular intervals) depending on the agriculturist’s chosen cropping pattern.
- If applicant is not an agriculturist, loan amount of maximum of 3 times of net cash earned as per ITR of the previous fiscal year or audited balance sheet.
Allahabad Bank has a set of margin requirements that varies with different types of properties, they are:
- If the property loan is being taken against a residential or commercial property, then the margin is considered to be at 50% of the property’s value.
- If the property in question is an open land, the margin of the loan is at 60% of the property’s value.
Allahabad Bank Property Loan Interest Rate:
Allahabad Bank charges a rate of interest at MCLR plus 5.50%.
In case, property loan is being taken in the name of a company, trust, firm, society, either authorized signatory or personal guarantee of individual major partners, proprietor, directors, promoter or office bearer has to be obtained.
Loan applicants are required to provide something valuable or expensive as security against the loan from the bank. The security is considered as an assurance to the bank and in case borrower fails to make loan repayment on time, the bank is free to sell off the property given to the bank as security in order to regain the money. Also, borrower must mortgage the property against which loan is applied.
Loan repayment commences from a month after the loan amount is disbursed. The loan repayment should be done through EMIs, within a maximum of 108 months.
The bank charges the following processing fee based on the amount of loan taken:
|Up to 25 lakh
||1.20% of the loan (Rs.3000 maximum)
|Between 25 lakh to 150 lakh
||0.60% of the loan (Rs.30,000 maximum)
|Above 150 lakh
||0.30% of the loan (Rs.90,000 maximum)
Prepayment penalty is charged by Allahabad Bank and it is 2.25% of the remaining loan balance.
Allahabad Bank Property Loan Other Features:
- An applicant can check loan eligibility before applying for the Property Loan from Allahabad Bank by logging on the bank’s website.
- Loan EMI can also be calculated online as long as you provide the loan amount, tenure and rate of interest.
- Allahabad Bank allows applicants to check the status of the loan application online.
- What is the maximum loan amount I can avail under the Allahabad Bank Property Loan?
Allahabad Bank grants a maximum of Rs.200 lakh against the property loan.
- Will I have to pay a prepayment penalty if I make the loan prepayment before its tenure?
Yes, Allahabad Bank charges 2.25% of the outstanding loan amount as prepayment penalty charges.
- What is the minimum eligibility age criteria to apply for a property loan at Allahabad Bank?
The minimum eligible age is 21 years to apply for property loan.
- What is the maximum eligible age at the time of Allahabad Bank Property Loan sanction?
Borrower can be at the most 70 years of age at the time of loan sanction.
- My firm is a 4 year old organization and is looking to apply for a property loan from Allahabad Bank, is my firm eligible?
No, only when a firm completes 5 years after its formation can it apply for a property loan with the bank.