If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Allahabad Bank Used Car Loan is Rated as "Blown Away!" by 8 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service



    Allahabad Bank Used Car Loan

    Allahabad Bank Used Car Loans

    This illustrious banking financial services institution was founded in the year 1865 by a group of Europeans at Allahabad in the state of Uttar Pradesh and is the oldest joint stock bank in India. Currently headquartered in Kolkata, Allahabad bank has over 2,840 branches across the length and breadth of the country. A prominent offering in its retail credit products portfolio is extension of car loan for pre-owned units.

    With nominal rates, terms & charges, financing the procurement of pre-owned car from Allahabad bank can be the ideal choice. Compared to similar products in the market, you’re likely to save more with this bank. The banks disburses loans towards used cars that are not older than 3 years from the date of registration.

    Features and Benefits of Allahabad Bank Used Car Loan

    Maximum Loan Amount

    The bank belongs to a league which offer maximum funding for used cars. The maximum loan amount under this scheme is upto 85% of the agreed purchase price or 60% of the valuation of the vehicle, whichever is lower. This feature is one of the best in class.

    Low Interest Rates

    Generally, the rate of interest for used car loans is substantially higher than the rates for new cars. However, Allahabad bank seems to stay away from differentiating between new and used cars. At 10.95% (Base rate + 0.75%), interest rate for used car loan is one of the lowest in the market.

    Premium Repayment Tenure

    A firm testimony of Allahabad bank’s effort to provide the best terms is the enduring repayment tenure. Loan availed on used cars can be repaid in up to 60 months (or residual life of the vehicle), which is a whopping 5 years.

    Pleasing Charges & Fees

    Allahabad bank charges a processing fee of just 1.20% of the total loan amount towards paperwork and handling. The bank does not penalise customer for prepayment of loan amount if paid off in full. In case of a takeover from another bank, the prepayment penalty is 2.25% of the outstanding balance.

    Security Clause

    Until full repayment of borrowed amount and interest charges, the vehicle will be hypothecated to Allahabad bank. After successful closure of the car loan account, full ownership rights will be transferred to the borrower.

    Allahabad Bank Used Car Loan Eligibility Criteria

    • For the salaried class, employees on permanent rolls of the company with a min.experience of two years, drawing a monthly gross income of Rs 25,000 and above are eligible.
    • Self employed businessmen and professionals filing ITR on a regular basis are welcome to apply. Income threshold will be determined on case to case basis.
    • Agriculturalists and farmers with minimum of 5 acres of irrigated land. Retired individuals drawing a monthly pension of Rs.15,000 and above can also apply for a used car loan.

    Allahabad Bank Used Car Loan Interest Rates

    Allahabad Bank offers a specialised car loan to people who wish to purchase a used car. Termed “Dream Car”, this loan attracts interest based on MCLR (for new customers) and Base/Prime Lending Rate (for existing customers).

    Allahabad Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

    The RBI recently promulgated a change in the interest pattern followed by banks, making it mandatory for them to use the MCLR based platform for new borrowers. MCLR takes factors like current economic conditions, repo rate, cash reserve ratio and operating costs into account to calculate the final interest chargeable. MCLR for the month of May are highlighted in the table below.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.30%
    1 month 9.35%
    3 months 9.40%
    6 months 9.50%
    1 year 9.60%

    Used car loan interest rates – July 2018

    The MCLR based interest charged by Allahabad Bank on its Dream Car Loan depends on the tenure of a loan. The current interest is MCLR + 0.75% per annum, making it a competitive offering in the market.

    Allahabad Bank Base and Prime Lending Rates (For existing borrowers)

    Existing customers of Allahabad Bank’s Dream Car Loan can choose to shift to the MCLR based system or continue paying interest as per the base rate. The table below highlights the base and prime lending rates applicable for such customers.

    Base Rate 9.70% per annum, effective 05/10/2015
    Prime Lending Rate 13.95% per annum, effective 05/10/2015

    Allahabad Bank interest rate for used cars (Based on Base Rate)

    The interest charged on a Dream Car Loan depends on the base rate, with Allahabad Bank having the autonomy to modify the interest based on the tenure and relationship of a borrower with the bank.

    Note: Interest rates mentioned above are applicable as of jan, 2018. These rates are subject to change without prior intimation and borrowers should check current applicable rates at the time of application.

    EMI Calculation for Allahabad Bank Used Car Loan

    It is highly recommended that you do a good amount of homework with a view to choose the best terms which include a conducive repayment tenure.Allahabad Bank Used Car Loan calculator comes to your rescue. This tool not only helps to ascertain monthly EMIs, but also provides a detailed breakup of various monetary costs involved and also helps you to get an all round view.

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    Allahabad Bank Used Car Loan Reviews

    • Allahabad Bank Car Loan
      "One of the better banks"
      0.5 3.5/5 "Pretty good"
      I have got the car loan with the Allahabad bank and the response is good one too. Its very well known to me and I got the loan approval in a day of time. Everything is better one for me with them as such. There are not much interaction with them.
      Was this review helpful? 5
      , bangalore
      Reviewed on Jun 14, 2018
    • Allahabad Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      It has been a good experience i had with this car loan where i was happy with the loan amount and the services which they had provided me. It has taken very short time for getting the loan, and the process has been very good. The rate of interest has been good with them where compared with the market it was low.
      Was this review helpful? 3
      , ahmedabad
      Reviewed on May 25, 2018
    • Allahabad Bank Car Loan
      "Good to avail"
      0.5 4.0/5 "Great!"
      I took the car loan from Allahabad bank on 2014, they have sanctioned 90% of loan from ex showroom price. I have purchased Hyundai Eon, they helped to complete the process on time and also they gave me part payment, balance transfer and foreclosure option.
      Was this review helpful? 1
      , gurgaon
      Reviewed on Sep 21, 2017
    • Allahabad Bank Car Loan
      "Very Good service"
      0.5 5.0/5 "Blown Away!"
      When I applied for a car loan with Allahabad bank, it was very easy and smooth process and the documentation process was also very easy. The rate of interest is nominal with Allahabad, when compared to others. Totally, it is a very good service provided by the above mentioned bank.
      Was this review helpful? 4
      , ahmedabad
      Reviewed on May 04, 2017
    • Allahabad Bank Car Loan
      "Best "
      0.5 5.0/5 "Blown Away!"
      I have got the car loan with Allahabad bank and the interest rate is floating based, also all nationalized banks are providing interest rate on same manner. Within a week of time , the loan amount got disbursed. Customer service is fine with the Allahabad bank.
      Was this review helpful? 2
      , mumbai
      Reviewed on Feb 18, 2017
    • Allahabad Bank Car Loan
      0.5 5.0/5 "Blown Away!"
      The service is Allahaba bank is good. Within one day they processed the car loan with the interest rate of 8.50% because being the employee of the bank . There was no processing fee. They approved the 85% of the loan for the public and 90% loan for the employee but i availed 65% of the loan.
      Was this review helpful? 4
      , mumbai
      Reviewed on Mar 10, 2016
    • Allahabad Bank Car Loan
      "Easily processed"
      0.5 5.0/5 "Blown Away!"
      I had availed a Car Loan from Allahabad Bank in January 2014. the tenure period of the loan was 1 year. They charged an interest rate of 10.15% which I feel was higher than other banks. But the processing was completely hassle free. I just visited the branch and since I a good connect with the manager they processed my loan within 2-3 hours.
      Was this review helpful? 6
      , gurgaon
      Reviewed on Sep 19, 2015
    • Allahabad Bank Car Loan
      "Good "
      0.5 4.0/5 "Great!"
      The service provided by Allahabad Bank was really good and they have offered a car loan within a day which is really god.The process was really easy to get the loan.The interest rate offered was around 9.75% which is a average rate. I will surely recommend this bank for the loan process.
      Was this review helpful? 2
      , muzaffarpur
      Reviewed on Jul 13, 2015
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