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Allahabad Bank Home Loan Interest Rates 2020

Allahabad Bank Housing Loan Interest Rate

Last Updated 03rd Sep 2020

Current Allahabad Bank Home loan interest rates for Sep 2020 starts at 8.25% p.a. for a maximum tenure of 20 years. Processing fee on its housing loans is Upto 0.40%, Maximum ₹ 50,000.

Loan AmountAllahabad Bank Repo Rate Home Loan Rate
Upto ₹ 25 Lakh8.25%
₹ 25 Lakh - ₹ 75 Lakh8.25%
₹ 75 Lakh - ₹ 5 Cr8.35%
Above ₹ 5 Cr8.45%

Allahabad Bank has merged into Indian Bank on April 1, 2020. The interest rates of Indian Bank will now be applicable on Allahabad Bank Home Loan.

Allahabad Bank Home Loan Interest Rates

Allahabad Bank offers various products on home loan. Allahabad Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • Allahabad Bank Home Loan Interest Rate starts from 8.25%.
  • Allahabad Bank charges a processing fees of Upto 0.40%, Maximum ₹ 50,000.
  • Loan Tenure of Home Loan ranges from 5 years to 20 years.
  • Lowest EMI per lakh on home Loan from Allahabad Bank is ₹ 852 per lakh offered at the lowest interest rate of 8.25% at the longest loan tenure of 20 years.
  • Allahabad Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • Allahabad Bank has an average customer rating of 2.5/5.0 from customers who have taken a home loan from the bank.

Allahabad Bank Home Loan Rate

Current Allahabad Bank home loan interest rates are in the range of 8.25% to 8.85%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 8.25%. The table below gives the interest rates on various housing finance schemes of Allahabad Bank.

Allahabad Bank Home Loan Scheme Interest Rates
Allahabad Bank Repo Rate Home Loan 8.25% - 8.85%

Allahabad Bank Bank Home Loan Charges

Allahabad Bank Home Loan Processing Fee

Allahabad Bank home loan processing charges are upto 0.40% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges the maximum processing fees at ₹ 50,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to Allahabad Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

Allahabad Bank Home Loan Prepayment

Allahabad Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to Allahabad Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from Allahabad Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with Allahabad Bank.

Allahabad Bank Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Allahabad Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at Allahabad Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on Allahabad Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)8.25% to 8.85%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 20 years
  • Allahabad Bank Home Loan Interest Rate: 8.25% to 8.85%
  • Processing Fee payable to Allahabad Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.40%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 852 for a 20 years ₹ 1 Lakh loan at 8.25% (lowest rate, longest time period) to ₹ 2,069 for a 5 years ₹ 1 Lakh loan at 8.85% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 34,114 for 5 years loan to ₹ 1.14 Lakh for 20 years loan

Allahabad Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of Allahabad Bank.

FAQs

What is Allahabad Bank Home Loan interest rate?

Allahabad Bank Home Loan interest rate ranges between 8.25% to 8.85%.

Why should I opt for balance transfer to Allahabad Bank?

Allahabad Bank offers competitive Home Loan rates with the best EMI of ₹ 852 per lakh availed at a low-interest rate of 8.25% for a maximum tenure of 20 years. If you are paying an EMI more than ₹ 852 per lakh, you should consider the option for a loan transfer to Allahabad Bank from your existing bank. EMIs can be calculated through Allahabad Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from Allahabad Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on Allahabad Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on Allahabad Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will Allahabad Bank housing loan rate of interest change in the future?

  • Allahabad Bank offers RBI Repo Rate linked Home Loan which starts at 8.25%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called Allahabad Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 4.25% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the Allahabad Bank Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then Allahabad Bank Repo Rate linked Home Loan rate will cut from 8.25% to 8.1%.

What is the current Allahabad Bank Home Loan rate?

The current Allahabad Bank Home Loan rate starts from 8.25% with a processing fee of Upto 0.40%, Maximum ₹ 50,000

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Allahabad Bank Home Loan News - Sep 2020
  • 2020-04-01 : Allahabad Bank to merge with Indian Bank
    With effect from 1 April, Allahabad Bank will merge with Indian Bank, creating an entity with over 6,000 branches, 4,800 ATMs, 43,000 employees, 120 million customers and business mix of Rs 8 trillion. The integration offers the bank to provide retail loans like home and personal loan along with business loans.
  • 2020-02-12 : Allahabad Bank posted a Q3 net loss of Rs.1986 crores
    Allahabad Bank net loss jumped manifold to Rs. 1986 crores on the back of an increase in higher bad loans and provisioning. Total income during the quarter ending December rose to Rs. 4860 crores due to an increase in Home loans and Personal loans. Further, the provision for bad loans for the quarter increased to Rs.3,003 crores.
  • 2020-01-15 : Allahabad Bank cut its lending rate by 5 bps
    Allahabad Bank revised its MCLR in effect from 14 January 2020. The overnight and one-month MCLR is 7.80% and 7.85%. The lending rate of 3 months is 8.10% and for six months it is 8.15%. Further MCLR for the long tenor of one year is 8.30%. The revised rates will benefit home loan buyers.
  • 2019-09-19 : Allahabad Bank links loans and deposits with external benchmarks
    In order to fulfill the guidelines set by RBI, Allahabad Bank is set to launch retail and business loan products linked with external benchmarks. The retail and MSME loans will be linked to external benchmarks like RBI repo rate and three-month MIBOR. Apart from that, all savings and long term fixed deposit rates will be linked to RBI’s repo rate.
  • 2019-08-28 : Allahabad bank links home loans and savings account rate with the external benchmark
    With effect from September 1, Allahabad Bank will price its home loan rate at external benchmarks. Also, all savings deposits above Rs 40 lakh will be charged at the same, with effect from October 1, 2019. However, the borrowers will be provided a choice to either borrow funds at MCLR rates of the bank or at external benchmark linked rates.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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