Allahabad Bank Home Loan Eligibility

Allahabad Bank has merged with Indian Bank. Therefore, Allahbad Bank home loan is served by Indian Bank. To know about Allahabad Home Loan Eligibility Criteria, check Indian Bank Home loan details. The basic eligibility for Home Loan is assessed according to customer’s profile, income & employment type and property valuation & home loan requirement. You can also check Allahabad Home Loan Eligibility Calculator to instantly know about preapproved home loan amount and EMI for your profile.


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About Allahabad Bank

The Allahabad Bank is a state-owned bank which was established in 1865. It is one of the oldest banks in India and is a joint-stock bank. The bank was founded in Allahabad, however, currently, the bank has its headquarters in Kolkata.

Allahabad Bank Home Loan

Buying your own house is a dream that many citizens hold. With the soaring house rates, it can be difficult for the common man to afford a house upfront. Home Loans provide an easy solution for this. Home Loans allow the individual to borrow the amount of money required to purchase the property while paying back the money through easy monthly instalments. Allahabad Bank provides a lot of Home Loan schemes for different needs.

Allahabad Bank Home Loan Eligibility Criteria

Below are some eligibility criteria you will need to meet if you wish to avail a Home Loan in Allahabad Bank.

  • The borrower must be an Indian National or a Non Residential Indian (NRI)
  • The borrower must be either a self-employed individual or a salaried employee with regular income
  • Home Loan can be availed for purposes like purchase of property or plot, construction of house, renovation or extension of an existing house, and so on.
  • The borrower's age must be between 21-70 years (maximum age limit is the age by which the loan has to be repaid completely)

Features of Allahabad Bank Home Loan

Below are the key features of a Home Loan in Allahabad bank.

PurposePurchase of property, land, construction of new property etc.
Loan amountUp to 5 Crores
TenureUp to 30 years
Minimum age criteria21 years
Maximum age criteria70 years for self-employed individuals, until retirement for salaried employees.
Income eligibilityOnly regular income required and the amount should be enough to cover the monthly calculated EMI.
Interest rateStarts from 8.50%
Processing feeUp to 0.40% of loan amount
Pre-payment chargesNil

Documents Required for Allahabad Bank Home Loan

You will have to submit the relevant documents along with your Home Loan application in order to get your loan application cleared.

1. Duly filled application form with the relevant fields.

2. Identity and residential proof:

  • Aadhar Card
  • PAN Card
  • Voter ID Card
  • International passport
  • Telephone Bill
  • Electricity Bill

3. Proof of income:

  • 3 months of salary statement (for salaried employees).
  • Business existence certificate
  • 6 months of bank statement
  • 3 years of profit/loss statement
  • 3 years of Income Tax Returns (for self-employed individuals)

4. Other documents:

  • Processing fee cheque
  • 2 passport sized photographs

Note: This is not an exhaustive list of documents. Allahabad Bank can ask for documents as per their discretion.

Factors Affecting Allahabad Bank Home Loan Eligibility

Even if the applicant meets all the eligibility criteria mentioned above, the loan application can still be rejected based on some factors mentioned below:

  • Credit score:

Banks consider credit score as one of the most important aspects before providing loan to any borrower. A credit score determines how well you have been able to handle your finances and how stable your current status is. A CIBIL score of 650 or more is generally considered to be good.

  • Existing liabilities:

Before applying for a new loan, you should always ensure that you don't have existing loans. So, in case you already have existing loans, or huge debts to pay off, your loan application will be negatively impacted. If you have signed as a guarantor for a loan application, you are still held liable for that person's loan and hence, this can also impact your application. It is imperative that you make sure that you have no pending liabilities before you apply for a Home Loan.

  • Credit limit usage:

You should never exhaust your entire credit limit. The utilisation of the credit limit should be done wisely to ensure that you don't appear to be credit hungry. Similarly, unpaid credit card bills will rack up as a liability issue and reduce your credit score. This will negatively impact your Allahabad Bank Home Loan application. You need to ensure that your credit card usage is moderate and in control and make sure that you clear all pending bills.

  • Low remainder salary:

Even if you have considered that your salary is enough to cover the Home Loan EMI, there will be a strict emphasis on your dependencies. The number of people directly dependent on you will have an impact on your loan application as your overall disposable income goes down. You will have to ensure that you can showcase enough expendable income so that bank can have faith in your repayment capability.

  • Employer not approved:

Allahabad Bank has a list of employers that are pre-approved for being safe and secure. Your chances of getting the loan disbursed are high only if your employer falls into the list. If not, there is a chance that your loan will be rejected. Generally, government-based employers are always approved.

  • Issues related to property:

The property to be purchased is usually taken as mortgage against the Home Loan by Allahabad Bank. This is why the property will be thoroughly vetted by them. The bank will ask for all original documents related to the property and if they find any issues with it, the loan will likely be rejected. You need to make sure that the property does not fall under any dispute to make sure your loan application is not impacted.

  • Missed instalments:

If the applicant has previously missed any instalments or any sort of payment, it will come under the bank's scanner and you will have to explain it. A missed payment has a high impact on your credit score, which lowers your chances of getting your loan disbursed. Make sure that all your finances are reviewed thoroughly through a credit report.

Tips to Increase Allahabad Bank Home Loan Eligibility

Even if you meet all the eligibility criteria mentioned above, the final decision of the loan disbursal rests with the bank and it is possible that even after satisfying eligibilities, your loan has still been rejected. To avoid this, you can follow the below steps to make sure your application is as concrete as possible.

  • Get your finances clear:

It is very important to get a complete financial overview done for your current status. You have to map your liabilities and dependencies to make sure that you will be able to bear the burden of repayment over a long tenure. You will have to map out your actual expendable income which will be the bracket of EMI that you will be seeking. You can take either the help of a professional for this or can do it yourself.

  • Credit report:

When you submit Allahabad Bank Home Loan application under your name, all of your banking and financial history is going to be checked by the bank. You need to make sure that there is nothing in your credit report that can lead to a negative impact and there are no spendings or issues that cannot be explained. You can do this by getting a credit report of your financial history done yourself and thoroughly checking it for issues.

  • Apply jointly:

If you apply for a Home Loan with someone, your chances of getting your loan application accepted is much higher, especially if your co-applicant has a good credit score. The income of your co-applicant gets added to your total income and both of you become responsible for repayment. This divides the burden of repayment as well and also gives the bank some more confidence in your loan application.

  • Go for a longer tenure:

The higher your loan tenure, the lower the EMI as your total amount gets divided as per the number of months as tenure. Lower EMI means lower burden every month and more confidence for the bank in your repayment capability. High tenure also means a long repayment window, which also adds to the repayment confidence. That's why high tenures can be desirable for Home Loan.

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Allahabad Bank Home Loan Eligibility FAQs

Are charges applied for prepayment?


Home Loans are provided to encourage citizens to be able to purchase their own house. Considering the fact that Home Loans are high tenure loans, most banks allow the option of pre-payment at nil charges (in case of floating rate loans). In the case of fixed-rate loans, the penalty might be applied.

What types of Home Loans are available with Allahabad Bank?


Allahabad Bank offers the following types of Home Loans:

  • Allahabad Ashiana Scheme: It can be used to purchase a property, renovation of an existing property, construction of a house over a self-owned piece of land, and so on.
  • Housing finance scheme for NRI and PIO: The purpose of the loan is the same, but these are availed by NRIs and PIOs.
  • Housing Loans for High Net Worth Individuals: These are exclusively for individuals with a high income and lifestyle. The purpose can be the same as in the Ashiana scheme.

How do I start with the application process?


You can walk into any branch of Allahabad Bank and ask for an application form. Simply fill it up, hand over the documents and wait for the next step. One more way is to apply through your bank application online. The process remains the same. The easiest way is to apply online through MyMoneyMantra as we provide end-to-end loan application solutions.

Do I have to go to the bank to apply for the loan?


Loan applications these days are very simplified because of the many ways you can get support for. Going to the bank is not necessary anymore. You have online applications that will help you with the Home Loan process. The loan can even get disbursed without you having to leave the house at all.

What is the process of EMI payment?


There are 2 ways of making EMI payments:

  • ECS (Electronic Clearing Service): Through ECS, the amount of EMI is automatically deducted from your account every month at a specified date.
  • PDC (Post-dated Cheques): The borrower has to provide post-dated cheques for every EMI instalment.

The most preferred method is ECS as there is no need to do anything manually. The loan amount will be automatically deducted from your bank account. PDC can be an issue, particularly in case of floating rate loans where EMIs can change.

What is the LTV ratio of Home Loan provided by Allahabad Bank?


The loan amount depends on the income of the individual and the cost of the property. Generally, Allahabad Bank offers up to 90% of the property cost as a loan amount.

Do NRIs or PIOs get any tax benefits from Home Loans?


NRIs can get tax benefit on Home Loans only if they file their tax returns in India and become eligible for falling under the tax exemption Home Loan scheme.

What is down-payment?


While purchasing a property, 15-20% of the cost of the property has to be paid upfront, in one go. The rest of the amount is paid by the bank. This amount that is paid immediately to book the property is called down payment.