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    Allahabad Bank Trade Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    13.55% Fixed
    1.22% (min. ₹1228) One time fee
    50,000 - 7.5L
    1-5 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Eligibility Criteria
    Personal Loan BYTES FROM OUR KITCHEN

    A loan product from Allahabad Bank that meets the business needs of Indians running businesses. All business have cash-flow requirements every now and then, and sometimes require large cash infusions to purchase assets, machinery, inventory, etc. This is a loan product that caters to all their needs, at an attractive rate of interest and easy loan terms.

    Purpose of the Allahabad Bank Trade Loan

    The purpose of the Allahabad Bank Trade Loan is as follows:

    • To meet working capital requirements of businesses.
    • To acquire business assets.
    • To purchase business premises, like godowns, office space, etc.
    • The construction or acquisition of abovementioned premises.
    • To purchase furniture, fixtures, lighting, etc. for the business concern.
    • To renovate the existing business.
    • To purchase upgraded machinery, computers, etc.

    Eligibility criteria for the Allahabad Bank Trade Loan

    In order to avail this loan, one must meet the following criteria:

    • Traders, individuals, companies, co-operative societies, and firms that conduct the trade of goods and services (which are neither restricted to deemed unlawful by any governing authority in India).
    • Business concerns and agencies providing services like photocopying, laundry and dry cleaning, petrol / LPG licensing, service centres for automobiles, telephone call booths, etc.
    • Traders and business concerns that have valid licenses and registration certificates as required under local laws and from appropriate authorities.
    • Applicants must be engaged in the business for which they need the loan for a minimum of 1 year before the date of application – and they must have properly filed Income Tax reports for the same.
    • Income Tax Return and a Statement of Financial Results (or Financials) must be certified by a Chartered Accountancy firm, and these must be deemed acceptable by the sanctioning authority.
    • The business concern should be a profit-making venture, having declared profits and with a clear plan as to how future profits will be made.

    What are the types of Financing available?

    Allahabad Bank’s Trade Loan offers financing through the following types of loans:

    • Term Loan.
    • Clean Term Loan.
    • Working Capital.
    • LC / Guarantee.

    What is the maximum amount of loan that can be availed?

    Loans and credit facilities can be sanctioned up to a limit of Rs.5,00,00,000 (Rs.5.00 crore).

    Interest rate on Allahabad Bank Trade Loan

    The interest rates, as applicable, are illustrated in the below table:

    Interest rate on Allahabad Bank Trade Loan for traders falling under the “Micro & Small Enterprise” category[Base Rate = 9.70%]
    Loan amount Micro Enterprise Small Enterprise
    Up to Rs.50,000. 9.70% (9.70% + 0.50%) = 10.20%
    Rs.50,001 to Rs.2,00,000 (9.70% + 0.50%) = 10.20% (9.70% + 1.00%) = 10.70%
    Rs.2,00,001 to Rs.10,00,000 (9.70% + 1.00%) = 10.70% (9.70% + 1.50%) = 11.20%
    For loan amounts above Rs.10,00,000, the rate of interest is linked to the “risk rating” of the borrower.
    Risk rating Micro Enterprise Small Enterprise
    AB 1 (9.70% + 1.50%) = 11.20% (9.70% + 2.00%) = 11.70%
    AB 2 (9.70% + 1.50%) = 11.20% (9.70% + 2.00%) = 11.70%
    AB 3 (9.70% + 1.50%) = 11.20% (9.70% + 2.00%) = 11.70%
    AB 4 (9.70% + 2.00%) = 11.70% (9.70% + 2.50%) = 12.20%
    AB 5 (9.70% + 2.50%) = 12.20% (9.70% + 3.00%) = 12.70%
    AB 6 (9.70% + 3.50%) = 13.20% (9.70% + 4.50%) = 14.20%
    AB 7 (9.70% + 3.50%) = 13.20% (9.70% + 4.50%) = 14.20%
    Interest rate on Allahabad Bank Trade Loan for traders not falling under the “Micro & Small Enterprises” category[Base Rate = 9.70%]
    Risk rating Interest rate
    AB 1 (9.70% + 3.50%) = 13.20%
    AB 2 (9.70% + 3.50%) = 13.20%
    AB 3 (9.70% + 3.50%) = 13.20%
    AB 4 (9.70% + 3.50%) = 13.20%
    AB 5 (9.70% + 5.00%) = 14.70%
    AB 6 (9.70% + 5.00%) = 14.70%
    AB 7 (9.70% + 6.00%) = 15.70%

    Documents required for a Trade Loan from Allahabad Bank

    You’ll require the following documents to avail the Allahabad Bank Trade Loan:

    • Proof of Identity: This can be your PAN Card, Passport, Driver’s License, etc. – any certified document that mentions your name along with a photograph.
    • Proof of Address: This can be your phone bill, electricity bill, Passport, Driver’s License, etc. – any certified document that confirms your identity and place of residence.
    • Proof of Income: Profit and loss account of the business.
    • Income Tax Returns.
    • Registration certificate of business.
    • Business License.
    • Statement of Financials: authorized and certified by a Chartered Accountancy firm.

    Terms for the Allahabad Trade Loan

    • Security and collateral:
      • In case the loan is being used to acquire or construct a business premises on an ownership basis, the property in question should be mortgaged to Allahabad Bank (as per the bank’s manual of mortgages).
      • For existing units:
        • National Stock Certificates (NSC’s)
        • Life Insurance Policies on the Surrender Value (LIC policies)
        • Other tangible securities with a realizable value equal to at least 75% of the total exposure.
      • For new units:
        • National Stock Certificates (NSC’s)
        • Life Insurance Policies on the Surrender Value (LIC policies)
        • Other tangible securities with a realizable value equal to 100% of the total exposure.
      • Guarantee:
        • The personal guarantee of all the partners, in the case of a Partnership Firm.
        • Personal guarantee of the promoter directors, in the case of a Private Limited Company.
        • Personal guarantee of at least one promoter director, and directors having a major financial stake in the business, in the case of a Public Limited Company.
    • Margin:
      • 20% cash for Letter of Credit/ Bank Guarantee.
      • 25% on stocks.
      • 25% on term loan sanctioned for the purpose of acquisition of equipment, tools, furniture & fixture, computer hardware, etc.
      • 30% on receivables (up to 90 days).
      • 50% on term loans that are sanctioned for the purpose of acquiring or constructing business premises and / or go-downs.
    • Processing charges of Rs.228, per Rs.1,00,000 sanctioned is applicable. This is subject to a minimum of Rs.2029, and a maximum of Rs.22,828.
    • Prepayment penalty of 2.28% of the outstanding balance applies only in the case of takeover.
    • Documentation charges apply as per the following table:
    • Credit Limit Documentation Charges
      Up to Rs.50,000 No charge
      Rs.50,000 to Rs.2,00,000 Rs.1,015
      Rs.2,00,000 to Rs.5,00,000 Rs.3,044
      Rs.5,00,000 to Rs.20,00,000 Rs.7,102
      Rs.20,00,000 to Rs.1,00,00,000 Rs.15,219
      Rs.1,00,00,000 and above Rs.20,292
    • Mortgage Charges apply as per the following table:
    • Credit Limit Mortgage Charges
      Up to Rs.50,000 No charge
      Rs.50,000 to Rs.2,00,000 Rs.1,015
      Rs.2,00,000 to Rs.5,00,000 Rs.3,044
      Rs.5,00,000 to Rs.20,00,000 Rs.7,102
      Rs.20,00,000 to Rs.1,00,00,000 Rs.15,219
      Rs.1,00,00,000 and above Rs.25,365
    • Inspection and Supervision Charges apply as per the following table:
    • Credit Limit Charges
      Up to Rs.2,00,000 No charge
      Rs.2,00,000 to Rs.10,00,000 Rs.507 / Qtr for all centres.
      Rs.10,00,000 to Rs.1,00,00,000 Rs.1,522 / Qtr for all centres.
      Rs.1,00,00,000 to Rs.5,00,00,000 Rs.4,058 / Qtr for all centres.
      Above Rs.5,00,00,000 Rs.8,264 / Qtr for all centers.

    How do I apply for this loan?

    To apply for this loan, you can simply walk into an Allahabad bank branch and get the process started. Don’t forget to take your documents with you. Depending on your application, the bank may ask for additional documentation.

    Can I apply for the Allahabad Bank Trade Loan online?

    No, this loan cannot be applied for online, however you can log on to the BankBazaar website and get your loan application process started.

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