Allahabad Bank Home Loan
Home Loan Bank Information
Table of Contents
- Features of Allahabad Bank Home Loans
- Allahabad Bank Home Loan Interest Rates
- Eligibility Criteria for Allahabad Bank Home Loan
- Allahabad Bank Home Loan Schemes
- How to Apply for Allahabad Bank Home Loan
- Document Checklist for Allahabad Bank Home Loan
Introduction
Founded in Allahabad in 1865, the Allahabad Bank is one of the nationalized banks in India with its headquarters in Kolkata. Having entered into its 150th year on 24th April 2014, Allahabad Bank is the oldest joint stock bank in India. The bank has over 2,500 branches across India. It provides a wide range of banking products and financial services to its customers. Allahabad Bank provides easy installments at a manageable interest rate and is considered to be one of the best in the market.
Allahabad Bank’s housing loan provides financial aids for various needs of its borrowers like constructing a house, purchase of a flat or house, renovation or extension of an already existing residential property, financial assistance for buying a second residence and for transferring an existing home loan from another financial provider.
Allahabad Bank caters to the needs of various sections of people through attractive interest rates and low processing fees. Floating and fixed type of interest rate are available according to the preference of the customers. The borrowers are free to prepay the home loan amount without any charges of penalty. Home loans from Allahabad Bank is one among the best options to construct or buy a dream house.
Features of Allahabad Bank Home Loans
- Attractive interest rates with fixed and floating type ( as per the borrower’s preference)
- Less paperwork
- Low processing fees
- No prepayment charges
- Transparent application process
- Easy home loan balance transfer from other banks
- Door step assistance provided by experts
- Flexible repayment options
Any applicant for home loans can either apply jointly or individually. All of the proposed owners of the respective property will have to become co-applicants.
Allahabad Bank Home Loan Interest Rates
Interest rates are as of 2019
| Rate of Interest | From 8.70 % |
|---|---|
| Charges for Processing | Up to 1 % of amount of loan |
| Tenure of Loan | Up to 30 yrs |
| Amount of Loan | Up to INR. 5 crores |
| Instrument or Cheque Swap Charges | INR. 500 per occurrence |
| Foreclosure or Prepayment Charges | NA for floating, and up to 2 % in the case of fixed rate |
Eligibility Criteria for Allahabad Bank Home Loan
- An individuals with a regular income is considered eligible.
- Hindu Undivided Families are not eligible. Allahabad Bank Home loan can be availed only by individuals.
- An employee who has availed home loan from his organization is eligible.
- The applicant must be a minimum of 21 years old.
- Maximum age:-
For Salaried Applicant: The maximum age for an employed applicant is that he should draw a fixed for every month. In addition, is mandatory for the borrower to repay the Home loan before retirement.
For Other Applicants: The maximum age limit is 70.
| Eligibility Criteria | Home Loan |
|---|---|
| Age | 21 yrs – 70 yrs |
| Dual Loan | Can be availed from bank or company |
| Eligible Income ( Minimum ) | Regular Source of Income |
| Eligible Loan Amount | Up to 5 Crs |
| Nationality | Indian |
Allahabad Bank Home Loan Schemes
The bank provides varied schemes suitable for its diverse range of customers. The various schemes are stated below:
| Home Loan Schemes | Interest Rate |
|---|---|
| ALL BANK AASHIANA SCHEME |
A concession of 0.05% for to Women and Salaried employees |
| HOUSING FINANCE SCHEME FOR PIO or NRI | |
|
PREMIUM HOUSING FINANCE SCHEME FOR HNIs (for Amount more than Rs.500 Lakhs) |
|
| Housing Loan Scheme ( in case of Pensioners) | |
| HOUSE FURNISHING SCHEME | 11.50 % |
| LOAN FOR MONEY FOR APPLICATION RAISED BY DEVELOPMENT AUTHORITY FOR ALLOTMENT OF FLAT or HOUSE or PLOT or by HOUSING BOARD |
12.50 % if interest is charged on a monthly basis and 12 % if interest is charged for a paid upfront of 6 months |
All Bank Aashiana Scheme
This loan can be availed for the following purposes:
- Construction of house on land pre – owned by the person.
- Purchasing a house or flat for residence.
- Reconstruction of pre-owned house.
- Purchase of an unfinished house / extension / renovation of an old house.
- The loan scheme provides facility to take over the housing loan that is already existing from other finance providers or banks.
- Finance for buying a 2ndresidential unit.
- Supplementary expenses due to an increase in income for repairs or alterations to the flat or house.
Housing Finance Scheme for PIO or NRI
This kind of loan is available to NRIs and PIOs holding an Indian passport.
Loan’s Purpose:
A borrower can avail this scheme for the following purposes:
- Construction of a house on a pre – owned land.
- Purchase of a house or flat.
- Extension, Renovation, or repair in a residential flat or house.
- Purchase of unfinished house, old or a resale property. This scheme can also be availed for extension or renovation or of the property.
- This scheme can be used for taking over an existing housing loans from another financial provider or banks.
- Purchase of a plot or to construct a house or flat.
Eligibility for NRIs and PIOs:
The NRI applicant should be employed under a fixed salary or must be self – employed with an income or must be running a business. In addition, the applicant must be staying overseas for a minimum of 1 year.
The NRI applicant must be 21 – 60 yrs. Hence, any applicant minimum of 21 years or more are considered eligible in addition to meeting the eligibility criteria. In the case of salaried borrowers, the maximum age is 60.
Remittances or Income:
Any one of the below stated conditions must be fulfilled by the applicant to be eligible for a home loan:
- The NRI must have a minimum remittance of INR.3 lakhs in the NRO or NRE or FCNR account during past 3 years.
- The NRI should have a minimum annual income that is equal to or more than INR.3 lakhs p.a.
Premium Housing Finance Scheme for High-net-worth Individuals (HNIs)
A HNI can avail loan under the scheme for the following reasons:
- Construction of a house on a pre – owned land.
- Purchase of a house or flat.
- Extension, Renovation, or repair in a residential flat or house.
- Purchase of unfinished house, old or a resale property. This scheme can also be availed for extension or renovation or of the property.
- This scheme can be used for taking over an existing housing loans from another financial provider or banks.
- Purchase of a plot or to construct a house or flat.
Loan amount that can be borrowed under this scheme:
A maximum amount of INR.5 Crores can be borrowed under this scheme
Salaried Borrowers: If the borrower is a salaried individual, he can avail an amount that is 60 times his monthly salary.
He or she can take home income as follows:
If a Home loan is borrowed for up to INR. 2 crores, the deducted salary amount, after all deductions must not be greater than 60 % of the monthly income. This is inclusive of the loan installments. After paying off the EMIs and other deductions, the borrower must not take back an income lesser than 60 % of the total monthly salary.
In cases where the loan amount is greater than INR. 2 crores the deducted salary amount, after all deductions must not be greater than 70 % of the monthly income. This is inclusive of the loan installments. After paying off the EMIs and other deductions, the borrower must not take back an income lesser than 70 % of the total monthly salary.
Other Applicants: A borrower can borrow a maximum amount that is 5 times the total annual income. This calculation should be based on the applicant’s IT returns.
Allahabad Bank Home Loan Margins
| Amount of loan borrowed | Amount of Margin |
|---|---|
| Upto INR. 30 lakhs | Up to 10 % of the total cost of the project |
| Greater than INR. 30 lacks upto INR. 75 lakhs | Up to 20 % of the total cost of the project |
| Greater than INR. 75 lakhs | Up to 25 % of the total cost of the project |
Allahabad Bank Home Loan Security
To avail a home loan from the Allahabad bank, a borrower has to submit a valuable asset as security. The security will be considered as an assurance from the perspective of the bank in cases where the borrower fails to pay his timely installments or EMIs. In such cases, the bank will have the security as an option so that it can sell the property to get its money back. If the loan is borrower by a salaried individual who has availed a loan from his organization, the borrower is supposed to give a second charge over the proposed property.
How to Apply for Allahabad Bank Home Loan
A home loan from Allahabad Bank can be applied either online or by visiting the nearest Allahabad Bank branch. The willing applicant can also download the application for home loan from the website of the Bank. After filling the necessary data, the in application form should be handed over to a representative of the bank.
EMI Payment Methods
Allahabad Bank home loan can be repaid in following ways:
Post – Dated Cheques (PDCs):
The borrower can submit the post – dated EMI cheques by any other Bank account in the nearest Loan Centre of Central Bank of India Bank. A new set of PDCs should be submitted on time. It is to be noted that Post Dated Cheques shall be collected only in non – ECS locations. It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
Standing Instruction (SI):
If the borrower is an existing account holder at the Central Bank of India Bank, Standing Instruction is the best mode of repayment. Your EMI shall be automatically debited at every monthly cycle’s end from the Central Bank of India account that is specified.
Electronic Clearing Service (ECS):
This mode can be utilized if the borrower has a non – Central Bank of India Bank account and would like his EMIs to be automatically debited by the end of every monthly cycle from the account.
Document Checklist for Allahabad Bank Home Loan
| For Salaried employees | For Self-Employed |
|---|---|
| Filled up loan application form | |
| Photograph ( 2 Passport Size ) | |
| Identity Proof – Driving License or Passport or PAN or Voter ID | |
| Residential Address Proof – Registered
Rent Agreement or Leave and License or Passport or Utility Bill (for 3 months) |
|
| Property Documents – Conveyance deed, Past title chain, Sales deed, Possession letter, Allotment letter, Copy of the construction’s or extension’s approved plan and Latest property tax receipt | |
| ITR of last 2 years | Business proof – service tax registration, VAT, incorporation details for companies, profit and loss account and balance sheets certified by a CA, address proof of business, copy of deed of partnership and proof of the existence and profile of business |
| Income Documents – payslip for 6 months, Form 16 for 2 years, bank statement for 6 months showing EMI debits and salary credit | |
Below stated are some important documents to be submitted while applying for a home loan with Allahabad Bank:
- Completed loan application
- 3 photographs (Passport size)
- Identify Proof (copies of Passport or Voters ID or IT PAN card or Driving licence )
- Proof of residence (photo copies of recent Telephone Bills or Electricity Bill)
- Statement of Bank Account or Pass Book for last six months
- Form 16 or IT returns for the last two financial years for salaried employees
- IT returns for the three years for self-employed professionals
- Property tax receipt
- Proof of business address for non-salaried individuals
- Personal assets and liabilities statement
Documents required in the case of a guarantor:
- Proof of Signature identification from the present banker
- 2 photographs (passport size)
- Personal Assets and Liabilities Statement
- Proof of residence
- Proof of identification
- Proof of business address