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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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.
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.
Below are some eligibility criteria you will need to meet if you wish to avail a Home Loan in Allahabad Bank.
Below are the key features of a Home Loan in Allahabad bank.
|Purpose||Purchase of property, land, construction of new property etc.|
|Loan amount||Up to 5 Crores|
|Tenure||Up to 30 years|
|Minimum age criteria||21 years|
|Maximum age criteria||70 years for self-employed individuals, until retirement for salaried employees.|
|Income eligibility||Only regular income required and the amount should be enough to cover the monthly calculated EMI.|
|Interest rate||Starts from 8.50%|
|Processing fee||Up to 0.40% of loan amount|
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:
3. Proof of income:
4. Other documents:
Note: This is not an exhaustive list of documents. Allahabad Bank can ask for documents as per their discretion.
Even if the applicant meets all the eligibility criteria mentioned above, the loan application can still be rejected based on some factors mentioned below:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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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.
Allahabad Bank offers the following types of Home Loans:
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.
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.
There are 2 ways of making EMI payments:
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.
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.
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.
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.