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Allahabad Bank Business Loan

Allahabad Bank was founded in the year 1865 by a group of prominent Europeans. In 1920, the bank came under the P&O Banking Corporation and was nationalized in 1969. The head office currently is at Calcutta due to business considerations. The bank thrives on a strong customer base that has been created over the years by incorporating the best in banking technology and by constantly restructuring the bank by reorganizing the structure and the talent employed to provide various services to customers.

The mission of the bank is to ensure that customers have constant access to all their banking services by providing technological solutions like net banking and mobile banking and more. Be it your loan account or any personal account, you will always have the advantage of being able to access your statements and make transactions on the go. The bank also prides itself on providing the best in terms of customer service by utilizing their human resources in the best way possible and also innovating products and services. If you are looking for a bank that stays updated with the trends in the banking industry and ensures a customer centric relationship, then Allahabad Bank is the perfect option for you.

Allahabad Bank Business Loan

Whether you are looking at expanding your business or sustaining current operations, you can bank on the various business loan options provided by Allahabad Bank. From loans to professionals to MSME loans, you can find a variety of schemes that are initiated by Allahabad bank and also aided by the government.

These loan plans provide you with working capital and term loans that are completely need based and also ideal for the sector of business that you are seeking funding for. Be it an established organization or a new firm, there are perfect loan plans that you can get through Allahabad Bank.

Features and Benefits of Allahabad Bank Business Loans

Allahabad Bank provides a wide range of some of the most innovative products that are loaded with features and benefits as mentioned below:

  • Need based funding: Allahabad Bank provides business loans as per the requirements of the project to ensure that you are able to get the right funding when you need it. These loans are provided in the form of both term loans and working capital that you can make use of for expansion of business, purchase of equipment and even managing overheads in the business.
  • No collaterals required: One of the biggest benefits provided by these loans is that they do not require applicants to provide any collateral against the loan. They have schemes that are covered by credit guarantee that ensures that no collateral or third party guarantee is required.
  • Low interest rates: These business loans are extremely affordable with low interest rates that are based on risk based lending and also MCLR rates. With SME loans, you can get interest rates that are as low as 1 Year MCLR which is currently 8.60%.
  • Flexible repayment period: Borrowers can get up to 10 years as repayment period based on the type of loan that they apply for. This gives them the option of reducing the EMI towards the loan if necessary so that they can avail loans without any added burden each month.
  • Special subsidies available: Subsidies are provided for women entrepreneurs as well as special category applicants, giving them easier repayment options and loan plans that are extremely affordable as well.
  • Simple processing: Once you have completed the documentation, loans are processed fast and made available to you right when you require them.

Types of Allahabad Bank Business Loans

Allahabad Bank provides funding for Micro, Small and Medium Enterprises, Individuals as well as corporates. The different kinds of loans available with Allahabad Bank are as follows:

MSME Loans

Loans are offered to Micro, Small and Medium enterprises by Allahabad Bank to ensure better business operations and to facilitate the setup of more entrepreneurial units. In order to finance these industries, Allahabad Bank has introduced several schemes as mentioned below:

Name of the Loan

Features and Benefits

AllBank Rent

The loan is provided against the lease rentals, service charges and commissions that guarantee a minimum income.

You can get a minimum of 1 Lakh and a maximum loan of 200 Crores on these loans.

The building must not be more than 25 years old.

The loan must be repaid within the expiry of the lease period, subject to a maximum of 120 months.

The interest rate is MCLR+4.00% for loans up to 5 Crores. For higher amounts, the interest rate is as per the risk based pricing policy.

All Bank Udyami Plus

A loan quantum of up to 25 Crores is available.

You can get a standby limit of 20% of the assessed loan limit as well.

They can also get a capital line of credit up to 20% of the credit or 10 Lakhs, whichever amount is lower.

25% concession is provided on processing fees, mortgage charges and documentation charges.

The rate of interest is 25 bps lower than the actual rate as per the risk based pricing and is linked to MCLR.

All Bank Udyog

A quantum of between 10 Lakhs and 5 Crores is provided.

Primary security is as follows:

o For working capital- Hypothecation of assets.

o Term loan- Mortgage of fixed assets like land or building.

Collateral security is provided as liquid security that is accepted by the bank or with mortgage of land or building, if not covered by CGTSME.

Collateral coverage is 75% for existing clients and 100% for fresh loans.

The interest rate is as per the collateral based pricing.

All Bank Vypaar

It is provided as working capital and for purchase of equipment or expansion of the business.

You can get finance between 10 Lakhs and 5 Crores.

For new customers collateral coverage of 100% is a must and for existing customers collateral coverage required is 75%.

If the loan is not covered under CGTSME, the collateral can also be reduced to 60% for clients with a good record or to 85% for fresh applications with a good track record.

You get repayment tenure of up to 7 years with these loans.

All Bank Contractor Finance

The loan is provided for the purchase of any new equipment or machinery like excavators, dumpers, pay loaders, road rollers, crushers, etc.

The maximum quantum of loan available is 5 Crores.

You can get a term loan and a working capital facility.

Collateral to be provided is as follows:

o Class A contractors: 60%

o Class B Contractors: 80%

o Other contractors: 100%

The interest rate is MCLR Based and is as per the risk based pricing.

All Bank Doctor

The loan is provided for the construction or purchase of poly clinics, nursing homes, pathological labs, to set up clinics and to purchase equipment and vehicles.

Both working capital and term loan facilities are available.

The quantum is based on the project cost

The interest rate is based on the MSME Rate Card which ranges from 1 year MCLR to 1 year MCLR+4.50%

Security of 65% is required if the loan is not covered under CGTSME.

Mudra Loans

This is a government aided scheme which provides loans of up to 10 Lakhs for any income generating micro-enterprise.

The loans is categorized as:

o Sishu: Loans above 50,000

o Kishor: Loans between 50,000 and 5 Lakhs

o Tarun: Loans between 5 Lakhs and 10 Lakhs

No margin required for loans up to 25,000.

For loans above 25,000, margin of between 10% and 25%.

The interest rate is between MCLR and MCLR+2.00% based on the activity.

0.50% subsidy is provided to women entrepreneurs.

No processing fees are applied for loans up to 5 Lakhs.

Corporate Finance

Allahabad Bank provides great finance options to corporates and MNCs. Here are the finance options available to corporates.

Type of Facility

Features and Benefits

Cash Management

This facility is provided to give corporates a credit facility to improve profitability and also manage cash flow better.

There are various CMS products offered to provide efficient flow of cash in any business to ensure that they are able to work more productively.

You can get high value and reliable solutions

Gold Card Scheme

This loan is provided to any exporters in the small and medium sectors who have an account that is classified as standard by Allahabad Bank.

The risk rating should be between AB1 and AB4.

You can get packing credit facility as INR and as Foreign Currency.

Term loans are provided in foreign currency in certain special cases.

The in principle limit provided is valid of 3 years.

You get a standby limit of 20% of the assessed limit.

The performance will be reviewed annually and benefits are passed on as per these records.

The rate of interest varies as per the circularized guidelines.

This gold card is provided for a period of 3 years.

Terms and Conditions

There are certain terms and conditions applicable to each loan plan that customers should be aware of before applying for a loan. The terms and conditions are as follows:

  • For all loans provided to MSME sectors, the activities under service and manufacturing sectors are categorized as per the Office of the Development Commissioner, Ministry of Micro Small and Medium Enterprises.
  • The bank is obliged to provide all the correct information pertaining to these business loans in English, Hindi and any other regional language that is applicable.
  • In order to provide timely financial support, the bank shall also extend credit facilities to term loans.
  • Added work capital will be provided to meet all the emergent needs of certain MSM units.
  • A mid-term review will be made on all the working capital limits to make changes as per the patterns in different MSME sectors and the sales in the previous years.
  • In case of changes in the loan terms such as the interest rate, the bank will inform the applicant by means of online notifications or mail. If these terms are not convenient or beneficial to the applicant, he or she has the option of closing the account or transferring the account within 60 days of receiving the notice.
  • Loan application forms will be made available to the customers at no added costs along with detailed checklist of all the documents required.
  • In case any added information is required for the completion of the assessment of the application after it has been submitted, the bank will contact the customer within 7 days.
  • Processing fees will be charged as per the tariffs mentioned on the official website. In case of MSME loans, there will be no processing charges for loans up to 5 Lakhs.
  • Prepayment charges are not applicable for MSME loans provided on floating interest rates. In case of fixed interest rates, prepayment charges are not applicable for loans up to 25 Lakhs.
  • In case of any delay in repayment, the customer will be notified through online channels or by personal visits.
  • For any recovery a standard and approved policy for collection of dues and security repossession will be used.
  • After complete repayment of all dues, the security provided will be released immediately or within a period of 15 days.

Documents Required for Allahabad Bank Business Loans

In order to avail any business loan with Allahabad Bank, customers must provide the necessary KYC Documents, which includes a valid Photo ID, Address Proof and Age Proof.

For business loans, signature proof from your current bank is also required. Proof of business must be furnished in the form of proof of business address, partnership deed, MSME registration etc.

For existing businesses, asset and liability statement along with last 3 years balance sheet, IT returns and sales tax returns must be provided as proof of income. For upcoming businesses, a detailed project report with projections up to the term of the loan, details of all vendors and business associations, strengths and weaknesses against competitors and other necessary details must be furnished.

Why Apply For Allahabad Bank Business Loans through MyMoneyMantra

MyMoneyMantra has been consistently providing solutions for varied financial needs of customers. They provide instant access to a variety of financing institutions under one portal to make it easier for customers to choose the loan plan that they need.

The benefits of applying for loans through MyMoneyMantra are:

  • Get a customized loan plan based on details like your income, employment status, loan amount required, and city of residence.
  • Loan application process is simplified and faster loan turnaround is guaranteed with systems that function 24x7.
  • You can seek assistance from over 2500 relationship managers across the country to get any information about loans that you may require.
  • MyMoneyMantra has successfully financed the requirements of over 40 million customers across the country.
  • They are easily accessible from any part of the country as they have a presence in more than 500 cities all over India.
  • For the most innovative products and services, MMM has been honored with more than 100 banking awards.
  • They provide customers with easy financial tools such as eligibility calculators and EMI calculators that help them make an informed decision when applying for any loan.
  • From documentation, submission of application to disbursement of loan, MMM provides continuous support to all customers.
  • You have a single point of contact for over 90 banks and NBFCs, allowing you to compare various deals and products before choosing one that is best suited to your needs.

How to Apply For a Loan through MyMoneyMantra?

Follow these simple steps to apply for a business loan through MyMoneyMantra:

  • Log in to the official MMM website.
  • Under products, choose business loans.
  • You will have to provide details like your name, age, gender, income, and city of residence to get plans that are customized to suit your needs.
  • Once you choose a plan, submit an online request.
  • You will be contacted by representatives of MMM who will help you with all processes from documentation to disbursement of the loan.

Eligibility for Allahabad Bank Business Loans

Name of the Loan

Eligibility Criteria

All Bank Rent

These loans are provided to owners of any property who have given the space out on rent to any reputed company, software companies, MNCs, Banks, or any other commercial purpose.

The building must not be more than 25 years old.

All Bank Udyami Plus

This loan is provided to any borrower with an account that is classified as ?Standard? for at least 3 years in a row without any adverse transactions or conduct of the account.

The risk rating should be between AB-1 and AB-4.

All Bank Udyog

This loan is provided to any SME business in the manufacturing sector that has had an average turnover of 50 Crores over the last 3 years.

GST registration is mandatory for these loans.

All Bank Vypaar

This is a special loan that is meant for trade advances or all small industries that are managed as a proprietorship, private Ltd and partnerships.

All Bank Contractor Finance

This loan is provided for any LLP/ Partnership/ Proprietorship entity which is public or private.

The company should have a positive net profit and net worth for at least 2 years as per the audited balance sheet.

All Bank Doctor

The applicant should be a medical graduate from any field.

Mudra Loans

This is a government-aided scheme which provides loans any income generating micro-enterprise.

The entrepreneurs must not be any defaulters with other banks.

The loan is provided to any entrepreneur engaged in any non-farming activities.

How to Calculate EMI for Allahabad Bank Business Loan?

You have two options to calculate the EMI on your Allahabad Bank Business Loan:

Using Formula

The formula [P x R x (1+R)^N]/[(1+R)^N-1] is used by all banks to calculate EMIs on loans. Here P is the loan quantum, R is the rate of interest, and N is the term of the loan.

EMI Calculator

EMI Calculators are online tools that provide the exact EMI upon providing details like the loan amount, rate of interest, and the term of the loan. This is a reliable and accurate option that is available online for free.

What to Check After Calculating EMI?

Once the EMI has been calculated, it is very important to make all possible deductions form your income that are mandatory each month. This will tell you if the EMI fits into your monthly budget or not. You can set the repayment term or choose a loan plan accordingly.

Allahabad Bank Business Loan - Processing Fees and Other Charges

Service

Charges

Processing fees

All Bank Rent

For Loans up to 25 Lakhs: 1.06% of loan amount subject to a minimum of 2,670

Above 25 Lakhs to 150 Lakhs: 0.60% of loan amount subject to minimum of 28,000

Above 28000- 0.27%, subject to a minimum of 80100.

SME Loans

No Processing Fees up to 5 lakhs

0.50% of loan amount for amounts higher than 5 Lakhs

Pre-Payment Charges

1.98% of outstanding amount for loans besides MSME loans.

For MSME Loans no processing charges are applicable on loans up to 25 Lakhs on fixed interest rate and any loan provided on floating interest rate.

Documentation Charges

Up To 50,000

NIL

50,000 to 2 Lakhs

890

2 Lakhs to 5 Lakhs

2,670

5 Lakhs to 20 Lakhs

6,230

20 Lakhs to 1 Crore

13,350

Above 1 crore

22,250

Other Products Offered by Allahabad Bank

Home Plus

Housing Loan

AllBankSuvidha

AllBankVahan

Mobike Loan

AllBankVidya

House and Furnishing Loan

Housing Appliance Finance Scheme

Commercial Vehicle Finance Scheme

Trade Loan

AB Fleet Finance Scheme

Mortgage Loan

Rent Loan

GyanDeepika Scheme

AllBankSaral

Loan Against KVP/NSC

Reverse Mortgage Scheme

Skill Loan Scheme

Agricultural Loans

Artisan Credit Card

Weavers Credit Card

LaghuUdhyami Credit Card

General Credit Card

AllBank HealthCare

Allahabad Bank Business Loans - Customer Care

The customer care numbers for Allahabad Bank are:

  • Toll Free Number- 18005722000
  • Principal Grievance Redressal Officer: 033-22104713/ 033-22106323

FAQs

    1. What are the rates of interest offered on MSME loans?

You can get between MCLR to MCLR+ 4.50% on all MSME loans. The rate of interest offered is as per the risk based lending policy of Allahabad Bank.

    2. How can I get a loan without third party guarantee or collaterals?

Special loan schemes that are covered by CGTSME credit guarantee are available for businesses. These loans do not require any collateral security or third party guarantee.

    3. Can I make prepayments on my loans?

Yes prepayment can be made on all business loans. Term loans are subject to prepayment charges of up to 1.98% of the outstanding loan amount. With MSME loans, you do not have any prepayment charges on loans up to 25 Lakhs in case of fixed interest rates and loans of any amount in case of floating interest rates.

    4. What is CGTSME?

CGTSME is a Credit Guarantee Scheme for Small and Medium Enterprises. This is a cover or a form of insurance that is provided by as credit guarantee for certain loan plans. Customers have to pay an Annual Guarantee Fee of up to 1% of the loan amount. This cover is available for both manufacturing and service sectors.

    5. What is the maximum repayment period available?

You can get up to 10 years to repay your business loans as per the plan chosen.

    6. How is a business classified as MSME?

Businesses are categorized as Micro, Small and Medium Enterprises as per the MSMED Act of 2006. The guidelines for manufacturing and service sectors are provided in this act to identify these businesses.

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