Allahabad Bank

ALLAHABAD BANK LOAN AGAINST PROPERTY

Apply Allahabad Bank  Loan Against Property

About Allahabad Bank

Allahabad Bank, with its head office in Kolkata, is one of the oldest joint-stock banks in the country and was established in the year 1865. It is operating across the country through 3245 branches. The bank provides an array of financial products to its customers and one of the most convenient loans to avail is the Loan Against Property. Provided at a very competitive rate of interest, the loan can be availed against either residential properties or commercial properties. You will get a higher amount for a lower EMI owing to the long-term repayment facility of the loan. Allahabad provides loan against the future rent receivables of the leased property that is offered as collateral security.

Types and Features of Allahabad Bank Loan Against Property

The Loan Against Property Scheme of Allahabad Bank is of the following two types:

  • All Bank Mortgage Loan
  • All Bank Rent Loan

Below are some key features of each type of loan:

All Bank Mortgage Loan

Purpose

  • For business and personal requirements
  • Loans granted to business entities should be used for business purposes only
  • The loan should not be used for speculative purposes

Quantum

  • The minimum amount is 10 Lakhs and the maximum amount is 5 Crores
  • For salaried individuals, the maximum amount will be 36 times the net monthly salary
  • For non-salaried other than agriculturists, 3 times net cash accruals
  • For agriculturists, 3 times net annual income
  • The margin stipulated is 50% of the market value of the property

Interest

For the rate of interest details contact the nearest branch of the bank

Security

  • Equitable Mortgage (EMT) of the property against which the loan is granted
  • Personal guarantee of proprietor/Partners/Directors/Office bearers/Authorised Signatory if the loan is granted to proprietorship/Partnership firm/Company/Society.

Repayment

  • Maximum repayment period is 10 years for term loan
  • Limit for overdraft accounts will be reviewed annually
  • Borrower's net monthly income or take home salary should not be less than 40% of their Gross Monthly Income/Salary after all existing and new deductions/EMI.

Processing Fees

  • Up to 25 Lakhs: 1.06% of loan amount, minimum 2,670
  • Above 25 Lakhs to 150 Lakhs: 0.60% of loan amount, minimum 28,000
  • Above 150 Lakhs: 0.27% of loan amount, minimum 80,100

Prepayment Charges

1.98% of the outstanding loan amount, only if the prepayment is done through a balance transfer.

All Bank Rent

Purpose

  • For business and personal requirements
  • Loans granted to business entities should be used for business purposes only
  • The loan should not be used for speculative purposes

Quantum

  • The minimum amount is 1 Lakh and the maximum amount is 2 Crores, depending on the requirement of the borrower or the assessed eligible amount, whichever is lower.
  • The margin stipulated is 10%

Interest

For the rate of interest details contact the nearest branch of the bank

Security

  • Primary security by way of assignment of future rent receivables, agency commission, etc.
  • Collateral security by way of equitable mortgage of the property that is leased out and with a market value of 125% of the loan amount.
  • If the EMT of the leased-out property is not possible for any valid reason, EMT of an alternate property with a market value of 150% of the loan amount or NSC/Fixed Deposit at the bank with a face value equivalent to 100% of the loan amount.
  • A combination of EMT of the property with a market value of 125% of the loan amount and assignment of NSC/FD at the bank is also permitted.
  • In cases where the property is leased-out to factories with a temporary structure, the EMT of land is accepted, provided the land is not agricultural land and is not acquired out of a Partition Deed. The property should be located in prominent residential/commercial areas and should have a marketable value.

Repayment

The loan should be repaid in a maximum of 10 years or within the unexpired period of the lease, whichever is earlier.

Processing Fees

  • Up to 25 Lakhs: 1.06% of loan amount, minimum 2,670
  • Above 25 Lakhs to 150 Lakhs: 0.60% of loan amount, minimum 28,000
  • Above 150 Lakhs: 0.27% of loan amount, minimum 80,100

Prepayment Charges

1.98% of the outstanding loan amount, only if the prepayment is done through a balance transfer.

Allahabad Bank Loan Against Property - Interest Rate, Processing Fees, and Other Charges

Following are the interest rates, processing fees, and other charges associated with Allahabad Bank Loan Against Property:

Type of Charge Description

Rate of interest

The rate of interest for Allahabad Bank Loan Against Property starts at 11% p.a., depending on the credit rating of the borrower. For information about the updated rate of interest, contact the nearest branch.

Processing charge

  • Up to 25 Lakhs: 1.06% of loan amount, minimum 2,670
  • Above 25 Lakhs to 150 Lakhs: 0.60% of loan amount, minimum 28,000
  • Above 150 Lakhs: 0.27% of loan amount, minimum 80,100

Prepayment charges

1.98% of the outstanding loan amount. Charges are collected only in the case of prepayment done by a balance transfer.

Documentation charges/ Mortgage charges

  • No charges for a loan up to 50,000
  • For a loan above 50,000 and up to 2 Lakhs, the charge collected is 890.
  • For a loan above 2 Lakhs and up to 5 Lakhs, the charge collected is 2,670.
  • For a loan above 5 Lakhs and up to 20 Lakhs, the charge collected is 6,230
  • For a loan above 20 Lakhs and up to 1 Crore, the charge collected is 13,350.
  • For a loan above 1 Crore, the documentation charge collected is 17,800 and the mortgage charge collected is 22,250.

Inspection charges

  • No charges for a loan up to 2 Lakhs
  • For a loan above 2 Lakhs and up to 10 Lakhs, the charges collected are 445 per quarter for all centres.
  • For a loan above 10 Lakhs and up to 1 Crore, the charges collected are 1,335 per quarter for all centres.
  • For a loan above 1 Crore and up to 5 Crores, the charges collected are 3,560 per quarter for all centres.
  • For a loan above 5 Crores, the charges collected are 7,675 per quarter for all centres.

Benefits of Availing Allahabad Bank Loan Against Property

The benefits of availing Allahabad Bank Loan Against Property are:

  • Flexible repayment tenure, which enables higher loan amount with an affordable EMI
  • Hassle-free loan process with simple and easy documentation
  • Mortgage of both residential/commercial properties accepted
  • No hidden charges
  • Affordable rate of interest

Eligibility Criteria for Allahabad Bank Loan Against Property

To be eligible for Allahabad Loan Against Property, you should comply with the following conditions:

  • The applicant should be between 21 years to 65 years at the time of applying for the loan
  • The loan should be cleared before the applicant attains the age of 70
  • For Proprietorship/Partnership Firms and Companies a business vintage of 3 years is mandatory. The firm/Company should be profit earning for the past 2 years.
  • The minimum income required for individuals is 8 Lakhs per annum. For salaried individuals employed with Government Organisations/PSUs/MNCs/Educational Institutions with Government Aid or State/Central Universities, the minimum salary criterion is relaxed to 5 Lakhs per annum. Being Tax Assessee and filing the returns continuously for a minimum period of 2 years is also mandatory along with the minimum annual income.
  • The loan can be availed jointly and the income of the joint borrower will be considered for computing the eligible amount.
  • The joint borrowers need not be the co-owner of the property, but should be legal heirs of the property and nominee for PF. The spouse having a future interest in the property can also be a joint borrower. For the income of the joint borrower to be considered, the joint borrower should be an IT assessee with a minimum annual income of 8 Lakhs or 5 Lakhs if employed with Government Organisation/ PSUs/ MNCs/ Educational Institutions with Government Aid or Central/State Universities.
  • Personal income of the proprietor/partner in the case of proprietorship/partnership firm respectively and the personal income of the Directors in the case of Companies can be considered for arriving at the eligible amount provided the source of income is different and is 8 Lakhs per annum.
  • The loan can be given only against non-agricultural properties
  • The property should be unencumbered and should be free from legal issues and should be situated in a popular residential and commercial centre.
  • The property should not have been developed for real estate purposes
  • If the title deed of the property is a partition deed, then such property cannot be considered
  • In the case of All Rent, the property leased out to Government Organisations/PSUs/MNCs and to Allahabad Bank is eligible for the loan. The borrower should have assured income vide future rent receivables.
  • The debt to income ratio stipulated is 40% of the gross monthly income

Documents Required for Allahabad Bank Loan Against Property

The following documents have to be submitted to avail Allahabad Bank Loan Against Property:

Type of Document

Salaried

Self-Employed

Proof of Address

Driving Licence, Aadhar Card, Voter's ID, Utility Bills

Proof of Identity

Passport, PAN Card, Driving Licence, Aadhar Card, Voter's ID Card

Proof of Income

  • Salary slips for the last 6 months.
  • ITR and Form 16 for the last 2 years
  • Bank statement of salary account for the last 6 months
  • Financial statements like Balance Sheet and P & L Account for the last 3 years certified by Auditor.
  • ITR with income computation for the last 3 years.
  • Bank Account statement for the last 12 months.
  • Proof of the existence of business.

Photograph

Two passport size photographs

Application

Relevant application form for Loan Against Property

Property Documents

Documents relating to the title of the property depending on the type of property mortgaged.

Why Apply for Allahabad Bank Loan Against Property through MyMoneyMantra?

If you are already dealing with the bank and are conversant with the loan procedure, then you can approach the bank directly for applying for the loan. If you have not decided on the loan provider and would want to do thorough market research before deciding on the institution that is giving the best deal, it is ideal to apply for the loan through MyMoneyMantra.

You can do the market research at the comfort of your home or workplace by logging in to the website of MyMoneyMantra where you will find the comparative data on a single screen on the home page. You can then try different variations applying different interest rates as displayed on the screen and arrive at the EMI and the eligible loan amount using the EMI Calculator available on our website. Once you have set your mind on the EMI and decided on the loan provider offering the best deal, you can proceed for the loan application and go through the whole process with the end to end guidance by the team of MyMoneyMantra.

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

Before making a decision on the loan, it is better to know the EMI for the loan amount that you intend to borrow. You can try different combinations to arrive at the EMI that agrees with the residual amount available out of the monthly income to source the proposed EMI. You will be applying for the exact eligible amount and so the time taken to assess the loan amount is spared and the loan processing will be faster.

With all the advantages, it is recommended to use an EMI Calculator that is convenient and user-friendly. The Loan Against Property EMI Calculator fits the description.

To use of MyMoneyMantra EMI Calculator, you will have to go through the steps given below:

  • Log in to the website of MyMoneyMantra
  • You will find the Financial Tools tab on the home page
  • Under the Financial Tools tab, you can choose the appropriate EMI Calculator
  • Provide the loan amount, loan tenure, and rate of interest
  • The EMI will be calculated in a jiffy
  • Also, there will be a list of best quotes displayed on the screen
  • You can try various combinations using the data available under the best quotes
  • Choose the EMI that suits you the best for a loan amount that is required
  • Finalize on the loan provider who gives the best deal suiting your requirements
  • Proceed with the filling of the loan application
  • The team of MyMoneyMantra will collect the loan application along with the relevant documents and will handover the same to the loan provider for processing.
  • They will be assisting you through the documentation and in understanding the terms and conditions in the loan agreements.
  • After the execution of the loan documents, they will coordinate with the loan provider for quick disbursement of the loan.

Why Use a Loan Against Property EMI Calculator?

Choosing a suitable deal means calculating the EMI with different combinations. Doing multiple manual calculations by applying complicated formula is not only tedious but you will not be assured of accurate value. With the EMI Calculator, all you have to do is provide the input and the value is given instantly. You will be assured of 100% accuracy and can rely on the value arrived and decide accordingly.

You can also get an idea of the interest that you will have paid by the end of the tenure. If you have chosen a longer tenure to accommodate the EMI, you will understand with the amortization table that you will be paying more than the value you have borrowed as interest. This will prompt you to make pre-payments whenever you get a hike in salary or you get a lumpsum amount as incentive, etc. By doing so, you can reduce the tenure and save on the interest cost.

Other Products Offers by Allahabad Bank

Apart from Loan Against Property, Allahabad Bank also offers:

  • Savings and Current Accounts
  • Deposits
  • Loans: Home Plus, Housing Loan, AllBank Suvidha, AllBank Vahan, Mobike Loan, AllBank Vidya, Housing & Furnishing Loan, Trade Loan, AB Fleet Finance Scheme, Gyan Deepika Scheme, AllBank Saral, Overdraft Facility in SB Account, Loan Against NSC/KVP, Reverse Mortgage Scheme, Skill Loan Scheme, AllBank Doctor Plus, Agriculture Loan, Small Business Loan, Traders Loan.
  • Debit Cards and Prepaid Gift Card
  • Insurance
  • Investment
  • Government Schemes
  • AllBank HealthCare
  • Financial Products and Services for NRIs
  • Digital Banking

Allahabad Bank Loan Against Property - Customer Care

For any information regarding Allahabad Bank Loan Against Property or other products of the bank, you can contact at their Toll-Free number 1800 57 22 000.

You can also email them at customercare@allahabadbank.in

Allahabad Bank Head Office: 2, N. S. Road, Kolkata -700 001

FAQs - Allahabad Bank Loan Against Property

What is the mode of assessment of the eligible amount for Allahabad Bank Loan Against Property?

The assessment is made as per the monthly income for salaried individuals. For self-employed individuals/professionals and businessmen, it is based on the cash accruals and for agriculturists, it is based on the annual income.

What are the minimum income criteria for Allahabad Bank Loan Against Property?

The minimum income required for salaried individuals is 8 Lakhs per annum with a condition that they should have IT Returns for a minimum of 2 years. There is a relaxation of minimum income to 5 Lakhs for salaried individuals who are employed with Government Organisations/MNCs/Educational Institutions with Government Aid/State/Central Universities.            

The same income criteria are applicable to joint borrowers whose income will be considered for assessing the eligible amount.

What is the rate of interest charged for Allahabad Bank Loan Against Property?

The rate of interest for All Bank Loan Against Property starts at 11% p.a., depending on the credit score of the borrower.

What are the types of securities that are acceptable for Allahabad Bank Loan Against Property?

For All Bank Mortgage Loan, the security will be by way of EMT of either residential or commercial property with a marketable value situated in residential/commercial area. Properties acquired by Partition Deed and agricultural land are not eligible. The property should not have been developed for real estate purposes.

Personal guarantee of proprietor/partner/Director/Office bearer/Authorised signatory should be available for the loan granted to the business entity as per the constitution of the business entity.

For All Bank Rent, the primary security will be the assignment of future rent receivables along with the Agency commission.

Collateral security of the leased-out property with a market value of 125% of the loan amount should be provided. If the EMT of the leased-out property is not possible, then EMT of an alternate property with a market value of 150% of the loan amount should be provided or NSCs/Fixed Deposit at the bank with a face value equivalent to 100% of the loan amount should be provided.

EMT of a plot is also accepted for property leased-out to factories with temporary structure provided the land is not used for agricultural purposes and is not acquired out of a partition deed.

A combination of EMT of the property with a value up to 125% of the loan amount and pledge of NSC/Fixed Deposit at the Bank is also possible.

What are the processing charges for Allahabad Bank Loan Against Property?

The processing fee may vary between 0.27% and 1.06% (with a minimum of 2,670), depending on the amount of loan required.

What are the documentation and mortgage charges for Allahabad Bank Loan Against Property?

Both documentation and mortgage charges are the same for loans up to 1 Crore

  • No charges will be collected for a loan up to 50,000
  • 890 for a loan above 50,000 and up to 2 Lakhs
  • 2,670 for a loan above 2 Lakhs and up to 5 Lakhs
  • 6,230 for a loan above 5 Lakhs and up to 20 Lakhs
  • 13,350 for a loan above 20 Lakhs and up to 1 Crore
  • Documentation charges will be 17,800 and mortgage charges will be 22,250 for a loan above 1 Crore.

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