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Allahabad Bank Home Loan Interest Rates

Home Loan Bank Information

Bank Name
Interest
Tenure
Processing Fees
Kotak Mahindra Bank
6.55%
1 - 20
YEARS
Rs 20000
+ GST
HDFC
6.7%
1 - 30
YEARS
Rs 3000
+ GST
Bajaj Housing Finance
6.8%
1 - 20
YEARS
0.3 %
+ GST
LIC Housing Finance
6.9%
0 - 30
YEARS
Rs 10000
+ GST
See More Offers

Allahabad Bank Home Loan Interest Rates

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.

Interest, loan amount and tenure of Allahabad Bank Home loans

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
Interest Rate 11.25%
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.

 

Tips to minimise Interest rates on Allahabad Bank home loans

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

  • Increasing the CIBIL credit rating- Allahabad prefers its home loan applicants to have a CIBIL score of 750 and above. This can be done by closing all existing loans, paying of dues and debts that may show up in the CIBIL score.
  • Choosing a good location for the property- Allahabad Bank prefer locations of property that are prime and with excellent prospects of short term appreciation in value. This would include property in prime residential areas with very good resale prospects. Allahabad Bank would need to be able to sell of the property easily in case of a loan default.
  • Starting young- It is best to start with a high tenure loan from a very young age, around the 20s. This assures a lower interest rate. There is also an option of preclosing a part of the loan and reducing the EMI burden.
  • Necessity of income proof- Income proof may be a problem with business persons, self-employed and people with agricultural income. It is better to present income tax returns as proof of income. Allahabad Bank may raise interest rates in the absence for proper income proof.
  • Perfect Documentation- There is always a large number of documents that need to be prepared. Applicants need to prepare an exhaustive checklist of the documents required by Allahabad bank and ensure all documents are present and that they are in order. Allahabad Bank officials may hold up or reject a loan in case any of the documents are not in order. An example is the encumbrance certificate which shows if there is any liability or litigation over a 15 to 20 year period. Any litigation can cause the loan to be held up and even if Allahabad Bank agrees, the interest rate may be raised.
  • Use the same bank- It is better to do business with a bank one is familiar with and where loan applicants are known. This, along with a good record of an applicant in the bank can help get a lower interest on the loan.

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.

FAQs

How will Allahabad Bank lower the interest on an ongoing home loan after a drop in the Repo rate by the Reserve bank of India?

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.

Can the interest rate be reduced by adding the rent of a property for which an Allahabad Bank home has been taken?

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.

Can an NRI take a domestic home loan of Allahabad Bank for the lower interest rate?

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.

Can an applicant apply for an Allahabad Bank housing loan safely as it has merged with Indian Bank?

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.

 

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