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    Allahabad Bank Property Loan

    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:

    Age Criteria:

    • 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.

    Income Criteria:

    • 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:

    Repayment Capacity:

    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.

    Loan Amount:

    • 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.

    Loan Margin:

    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%.

    Guarantee:

    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.

    Primary Security:

    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:

    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.

    Processing Fee:

    The bank charges the following processing fee based on the amount of loan taken:

    Loan Amount Processing Fee
    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.

    FAQs:

    1. 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.

    2. 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.

    3. 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.

    4. 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.

    5. 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.

    Allahabad Bank Property Loan Reviews

    • Allahabad Bank Home Loan
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan with Allahabad bank and the experience was good, the loan amount was for Rs 42 lacs with nominal interest rate when compared to others. Customer service was good and they responded on time. Tenure period for this loan is 20 years.
      Was this review helpful? 2
      , bangalore
      Reviewed on Nov 21, 2018
    • Allahabad Bank Home Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a very good experience i had with this Home loan, the loan amount also had been good and the interest rate with them has been nominal as well. There has been some processing fee which they had charged and there was no additional charges which they had made. Their customer support also had been good as well where they had been helpful at times.
      Was this review helpful? 4
      , kolkata
      Reviewed on Oct 05, 2018
    • Allahabad Bank Home Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      The overall experience i had with them had been very good, the whole process had been very good. It has taken only two weeks for the loan amount to get sanctioned and it has been very easy during the document submission and through the process it has been very convenient. The rate of interest which they have been provided had been low as compared with the market rate.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on May 25, 2018
    • Allahabad Bank Home Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken this loan almost three months back, the rate of interest which they have been providing was good. The service which they have been providing has been excellent, there has been no issues during the process. It has been very easy and smooth process. It took just ten days for me to get this loan.
      Was this review helpful? 1
      , mumbai
      Reviewed on May 22, 2018
    • Allahabad Bank Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a home loan from Allahabad bank and my experience was good, the loan amount was for Rs 16-17 lakhs with nominal interest rate when compared to other banks. Customer service was good and they collected documents on time. The tenure period for this loan is 23 years.
      Was this review helpful? 1
      , kolkata
      Reviewed on May 18, 2018
    • Allahabad Bank Home Loan
      "Good"
      0.5 2.0/5 "Expected more"
      My home loan was taken with ALLAHABAD bank which was taken 6 years back .The loan amount was 10 lakhs and the interest rate was high before , after pressurizing they have reduced to 8.65% which was disappointing . The customer service and responses was not satisfactory but the loan process was easy and hassle free.
      Was this review helpful? 1
      , chennai
      Reviewed on Dec 01, 2017
    • Allahabad Bank Home Loan
      "Home loan with ALLAHABAD BANK"
      0.5 4.0/5 "Great!"
      I have applied for a home loan application with ALLAHABAD BANK. The provided rate of interest was 8.5 percentage for 10 lakhs. ALLAHABAD BANK provides good service and response and without any delay the provide the loan for the customers.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Sep 30, 2017
    • Allahabad Bank Home Loan
      "GOOD SERVICE"
      0.5 3.0/5 "Satisfactory"
      The loan amount which ALLAHABAD BANK offered me was good. The customer services and representatives where very helpful. They contacted me and informed me the details. I was fine with the interest rate which was 8.5. Overall I can say it was good service.
      Was this review helpful? 2
      , kolkata
      Reviewed on Sep 23, 2017
    • Allahabad Bank Home Loan
      "Excellent interest rate"
      0.5 4.0/5 "Great!"
      I have taken a homeloan from ALLAHABAD bank and its been one and a half years. They gave me the amount what I applied for. I am paying it back with an interest rate 9.5% have to pay it for 117 months, and provided me with the pre closure option....
      Was this review helpful? 1
      , chennai
      Reviewed on Aug 22, 2017
    • Allahabad Bank Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The rate of interest offered by Allahabad for the housing loan is very good. Its very much beneficial for me .I am holding this housing loan from 2010. They were asking for all the necessary documents. There is no issue or hassle with them while submitting the documents The loan amount I have opted for 6.5 laks with ROI is 9.5% with nil processing fee.
      Was this review helpful? 2
      , kolkata
      Reviewed on May 05, 2017
    • Allahabad Bank Home Loan
      "Good home loan process"
      0.5 4.0/5 "Great!"
      Allahabad housing loan process is good, it is a public sector bank the service provided by them is very lengthy . They were in need of too many documents may be because of perfection I guess they were in need of more documents perhaps they ware trying to follow the guidelines set by RBI.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 17, 2017
    • Allahabad Bank Home Loan
      "Need to improve in online service"
      0.5 3.0/5 "Satisfactory"
      I have closed the housing loan with Allahabad Bank and the interest rate was floating based. Processing charges were nominal one and the loan amount got disbursed within thirty days of time. The money got disbursed on a single payment. I want them to improve the online services by the way so that it will be really helpful for customers.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jun 04, 2016
    • Allahabad Bank Home Loan
      "Very friendly staff and excellent service"
      0.5 5.0/5 "Blown Away!"
      I have a Home loan running with Allahabad Bank which I took recently. The documentation was very minimal and the processing was quite easy as the Branch manager was very helpful and friendly. I was offered an interest rate of 11.25% and the processing fee was waived off which was a nice gesture. The process took only about 12 hours.
      Was this review helpful? 1
      , ranchi
      Reviewed on Apr 07, 2016
    • Allahabad Bank Home Loan
      "Satisfactory..."
      0.5 5.0/5 "Blown Away!"
      ALLAHABAD BANK people were very cooperative. Just because of the interest rate I transferred my Home loan to SBI Bank. They use to provide every thing instantly. I was completed my 3 years loan but I never faced any issues with them. Their loan process and interaction with their customers every thing was good.
      Was this review helpful? 0
      , kolkata
      Reviewed on Feb 24, 2016
    • Allahabad Bank Home Loan
      "too fast...."
      0.5 5.0/5 "Blown Away!"
      In 13 working days the Allahabad bank has sanctioned the home loan and the amount is about 17lakhs. However when I asked for a credit card they did not process. Allahabad bank is certainly very fast in sanctioning the home loan. Customer service, response and their services are more than expected level. Interest rate is good. I visited the bank post 4pm and still they helped me to pay the due.
      Was this review helpful? 3
      , coimbatore
      Reviewed on Jan 04, 2016
    • Allahabad Bank Home Loan
      "Amazing "
      0.5 5.0/5 "Blown Away!"
      I got the home loan with allahabad bank and the experience was very awesome like within a couple of day the loan was disbursed which was the bigger amount . The staffs of the bank are good. Interest rate charged was 9.70% without any processing fee.
      Was this review helpful? 1
      , lucknow
      Reviewed on Dec 09, 2015
    • Allahabad Bank Home Loan
      "No satisfied..."
      0.5 2.0/5 "Expected more"
      It is a government bank and they are good in terms of interest rate. Allahabad bank is not good in customer service and in a paper works. The agents are not good. I was very frustrated at that time of process as every time they asked for new documents. They also asked papers from seller side to process the home loan.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Oct 20, 2015
    • Allahabad Bank Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The rate of interest offered by Allahabad for the housing loan is very good. Its very much beneficial for me .I am holding this housing loan from the month of June. They were asking for all the necessary documents. There is no issue or hassle with them while submitting the documents. Interest rate offered by them was floating rate processing is fine. Its a nationalized bank . I can check the part payment options on line.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 12, 2015
    • Allahabad Bank Home Loan
      "Has to follow CITI Bank"
      0.5 4.0/5 "Great!"
      I am holding this Allahabad housing loan for a period of 3 to 4 years. I am getting my certificate of interest on time. I am getting SMS for the payment on time. I am not happy with their service and it is not as good as CITI Bank. I would suggest Allahabad to follow CITI Bank.
      Was this review helpful? 1
      , kolkata
      Reviewed on Oct 07, 2015
    • Allahabad Bank Home Loan
      "Everything Went Well...."
      0.5 4.5/5 "Excellent!"
      Allahabad bank has given me a home at an interest rate of 9.4%. They did not ask me too much of documents. The very first day they gave me a checklist in which I mentioned about the papers which I had and alternatives were made for the one which I was not having. Within 10 days my loan got approved. Being a nationalized bank they have shown a good response.
      Was this review helpful? 2
      , bangalore
      Reviewed on Sep 25, 2015
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