Allahabad Bank, founded in 1865, is one of the oldest banks in India with a rich tradition and has modernised its services within a short period of time to emerge as a major banking service provider.
Allahabad Bank has merged with Indian bank in 2019 and the amalgamation has made the Indian Bank-Allahabad Bank combine the 7th largest bank in India.
Allahabad Bank provides all modern banking and financial services across institutions, Corporate, MSME (Micro small and medium scale Enterprises) and the general public. Amongst its retail, business and commercial loans, its retail sector consisting of mostly Home loans are very popular.
|Type of loan|
|Allahabad Bank Aashiana Scheme||Loan amount||Upto Rs 5 Crores|
|Loan Tenure||30 years maximum|
|Interest rate||8.30 -8.40%|
|Processing fee||0.24% – 0.40% of loan amount|
|Housing finance scheme for NRIs (nonresident Indians) /PIOs (Persons of Indian Origin)||Loan amount||Rs 5 lakhs – Rs 5 Crores|
|Loan Tenure||Maximum 10 years|
|Interest Rate||8.65% – 8.80%|
|Processing Fee||0.24% of loan amount|
|Housing loans for high net worth (HNI) individuals||Loan amount||Up to Rs 25 crores|
|Loan tenure||Maximum 30 years|
|Interest rate||8.25% – 8.35%|
|Processing Fee||None. Waived|
|Housing Finance Scheme for Furnishing||Loan amount||Up to Rs 5 lakhs|
|Loan Tenure||Maximum 10 years|
|Processing fee||0.53% of the loan amount|
|Housing Finance scheme for Pensioners||Loan amount||Up to Rs 5 lakhs|
|Loan Tenure||15 years|
|Interest Rate||8.25% – 8.35%|
|Processing Fee||None. Waived.|
The interest rate on Home loans of any bank is directly proportional to the amount of risk perceived by the bank; the lower the risk of the bank losing the loan it has disbursed, the higher the interest. Hence, applicants are advised to minimise all potential risk factors to Allahabad Bank and thereby earn the lowest interest in the range
Allahabad Bank is an old traditional bank which has also modernised itself with time but is now merged with Indian bank. Allahabad Bank has a wide diverse range of financial activities out of which loans and particularly home loans are very popular.
The home loans of Allahabad bank are available for people from all walks of life and from different income groups. The interest rates are competitive and vary for different kinds of loans and is the highest for the Allahabad home loan for furnishing.
Applicants need to plan their finances and decide on the type of property and the total cost and then decide on the loan amount. The use of the online EMI calculator of Allahabad Bank will help them to plan out the most suitable EMI.
Applicants need to take care of the factors that drive Interest rates up and take care to keep CIBIl credit rating scores high, apply at a younger age and select a prime location for property to attract the lowest interest.
Change in the repo rate by the Reserve Bank of India will get reflected if the applicant has chosen the floating interest rate. Allahabad Bank will continue with the same EMI but the interest component will reduce in the total loan balance. This may be reflected in the reduction of the last few EMI’s. Allahabad Bank will provide a half yearly or yearly statement where the benefit of the lowered interest will be reflected in the overall loan balance.
The rent potential of a property can be added to increase the total income in order to get a higher loan amount but there is no rebate on interest for this. The borrower can change over the balance portion of the Allahabad Bank home loan to a rent loan but this would not be beneficial in the long run. The borrower is suggested to save the rent on the property and plough it back into the loan amount as a part prepayment.
This will not be allowed as the NRI will not be able to show proof of income within the country. But the NRI can team up with a resident Indian relative and make that person the applicant while remaining as the co applicant. The applicant can show his or her income proof in India and apply for the loan.
This is not a problem as Allahabad Bank will exist even with Indian Bank being the parent bank. Home loan applicants will not be affected even with a full merger as they will be protected by the loan agreement signed with Allahabad Bank. Even if the loans are merged into Indian Bank, borrowers will benefit as Indian Bank has a lower interest rate than Allahabad Bank.