The New Saral Loan from Allahabad Bank provides the quick funding you need to meet emergency expenses, or make that long-awaited purchase of a vehicle, or an expensive consumer durable product.
Purpose of of the loan
- Purchase a vehicle.
- Purchase an expensive consumer durable / electronic product.
- Purchase any other tangible product of a high value, which can be validly hypothecated (placed as a collateral or guarantee) to the bank.
- Fund emergency expenses of a social / religious / domestic nature – so long as these expenses do not exceed 50% of the loan amount.
- The salary of the applicant must be routed and disbursed through any Allahabad Bank branch.
- The minimum monthly salary of the applicant must be at least Rs.20,000.
- The applicant must have been employed by the same organization for at least 2 years prior to applying for the loan.
- The Organization proposed for designation should have a minimum strength of 20 eligible employees.
- The applicant must be a minimum of 21 years old.
- The loan should be paid off at least 1 year before the applicant’s retirement from service at that particular company (or in general, if he / she reaches retirement age).
Features of Allahabad Bank New Saral Loan
- The loan carries a processing fee of 1.22% of the loan amount (subject to a minimum of Rs.609).
- No documentation charges.
- No Mortgage charges.
- No Inspection & Supervision charges.
- Prepayment penalty of 2.28% of the outstanding balance, only in the case of takeover.
- Repayment can be done in a maximum of 60 EMIs.
- The loan must be repaid 1 year before the borrower’s retirement from service.
Allahabad Bank requires a collateral in the form of:
- Hypothecation of articles being financed.
- Other items or existing articles owned by the applicant, whose value covers that of the loan.
- Spouse as a guarantor.
- Parents as a guarantor (in case of unmarried applicants).
- Up to 24 times of the gross monthly salary is available as a loan.
- Maximum loan amount that can be taken under the Allahabad Bank New Saral Loan is Rs.7,50,000.
- Minimum loan amount that can be taken under the Allahabad Bank New Saral Loan is Rs.50,000.
- The loan amount will be disbursed only after taking into account all the deductions (including EMIs) – to ensure that the net monthly take home salary of the applicant does not fall below 40% of the gross monthly salary.
- A margin of 10% is to be calculated, based on the total assets owned (or to be owned) by the applicant.
The interest rate on this loan is = Base Rate of interest + 4.00%, which is 9.70% + 4.00% = 13.70%.