Allahabad Bank Loan Against Property Interest Rate Dec 2018

Last Updated 03rd Dec 2018

Allahabad Bank Mortgage Loan Interest Rates

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

Allahabad Bank offers Loan Against Property starting at interest rate of 14.15% which is one of the best mortgage loan rates in India. Current 1 Year MCLR benchmark rate is 8.65%. Check Best Offers

Allahabad Bank Loan Against Property Features
Processing Fee Upto 0.53%
Max Tenure 9 years
Lowest EMI Rs. 1,642 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 21 and Max 70 years for Salaried
Min 21 and Max 70 years for Self Employed
Apply for Loan Against Property @ 8.80%*
Rs.
Rs.
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Allahabad Bank Floating Rate Loan Against Property
Allahabad Bank Mortgage Loan Interest Rates
Allahabad Bank Loan Against Property Floating 14.15%
Allahabad Bank Loan Against Property Floating
Loan Amount Rate
Upto Rs. 25 Lakh 14.15%
Rs. 25 Lakh - 50 Lakh14.15%
Rs. 50 Lakh - 1 Cr14.15%
Above Rs. 1 Cr 14.15%
Loan against property rate in Allahabad Bank depends upon
  • Loan amount: Property loan rates in Allahabad Bank depends upon the loan amount you apply for. You can get minimum loan of Rs. 5 Lakh from Allahabad Bank.
  • Your Net Monthly Income: Income helps you in identifying your rate of interest. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate.
  • Type of loan opted for: Allahabad Bank also offers differential rates for different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
  • Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
  • Your profession: Allahabad Bank may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

Interest Rate and its impact on Allahabad Bank Loan Against Property Eligibility

Allahabad Bank has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

Eligibility Criteria Details
Age 21 to 70 years
Minimum Income Rs. 10,000
Loan Amount Rs. 5 Lakh to Rs. 2 Cr
Minimum years of business existence 0 years
Minimum work experience 5 years
Minimum Credit Score 650 and above
Loan to Value Ratio Upto 50%
FOIR (Fixed Obligations to Income Ratio) 0.65
  • Age: Age is one of the important factors to examine your eligibility. Allahabad Bank offers loan to salaried and self employed at the age of 21 years. Any person taking loan at the age of 25, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
  • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
  • Business Stability: Self employed person should be in business for a minimum of 5 years during which the business should be profitable. Allahabad Bank will ask for ITRs of 1 years to consider you as eligible for LAP.
  • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. Allahabad Bank grants loan to borrowers with a CIBIL score of 650 and above.
  • Loan Amount: Allahabad Bank gives you an amount ranging from Rs. 5 Lakh to Rs. 2 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 50% depending on the type of property. Allahabad Bank will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
  • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a Allahabad Bank mortgage loan is 0.65.

Allahabad Bank Loan Eligibility Calculator

Allahabad Bank Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

Allahabad Bank Mortgage Loan EMI and Interest Calculator

You can also use online Allahabad Bank Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

  • EMI calculator of Allahabad Bank helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
  • Higher the loan amount, higher the EMI. You can compared the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
  • Loan tenure matters equally as higher loan tenure reduces your EMI
  • Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility

What are the benefits of calculating Allahabad Bank Mortgage loan EMI?

  • EMI calculator helps you to calculate your monthly EMI at different rate of interest
  • Allahabad Bank Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
  • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
Other Charges

In addition to interest rates, property loan also carry some other charges which include:

  • Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Allahabad Bank allows prepayment of loan against property with Nil prepayment charges.
  • Processing Fee - Allahabad Bank charges a processing fee of 0.53% loan amount.
  • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
Allahabad Bank Loan Against Property Top up, Transfer

Transfer of LAP from another bank to Allahabad Bank

Allahabad Bank offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of Allahabad Bank.

You can avail additional top-up loan against property from Allahabad Bank, subject to your eligibility.

Allahabad Bank Loan against property documents required

For Self-Employed
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 1 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
For Salaried employee
  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 0 years
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 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
  • Registered Sale Deed/ Conveyance/ Lease Deed
  • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
  • Latest House Tax Return/ Receipt
  • Approved Building Plan from Municipal Corporation

Frequently Asked Questions

What is Allahabad Bank's loan against property interest rate?

Allahabad Bank offers loan against property at rate of 14.15% with the lowest EMI of Rs. 1,642. If you are currently paying higher interest rate than Allahabad Bank rate, you can opt for balance transfer of loan to Allahabad Bank.

What is the maximum loan tenure I can opt under Allahabad Bank Property loan?

Allahabad Bank offers you a longer tenure of 9 years to repay your loan with a benefit of paying less EMI per month.

What is the benchmark rate applicable for Mortgage loan?

The benchmark rate applicable for property loan in Allahabad Bank is 1 Year MCLR.

Do I get tax benefit on Loan against property from Allahabad Bank?

There are no tax benefits available for loan against property.

Can I foreclose my Mortgage loan? What are the charges applicable?

Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

Can I transfer my LAP from another bank to Allahabad Bank?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to Allahabad Bank offers you to pay lower EMIs and save money.

Can I club the income of my spouse with mine and apply for joint Property loan?

Yes, you can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

How to increase my eligibility on Allahabad Bank Mortgage 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 loan.

How will interest rate on Allahabad Bank LAP change in future?
  • Floating interest rate on Allahabad Bank property loan is linked to its 1 Year MCLR, which is currently 8.65%. So, when Allahabad Bank offers a loan against property at 14.15%, it applies a 5.5% premium to its MCLR to arrive at this rate
  • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new loan against property would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new loan account customers.
What is Allahabad Bank mortgage loan processing fees?

The loan processing fee charged is 0.53% of the total loan amount.

What is Allahabad Bank property loan procedure?

You can apply for a Allahabad Bank property loan by contacting the bank directly or by approaching them through online marketplaces like myloancare.in. Approaching the bank through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

What security do I need to provide?

Allahabad Bank requires registered mortgage of the property against which the bank will provide you loan.

What are the five things to check before applying for loan against property in Allahabad Bank ?
  • Property on which you intend to take loan is not a vacant land, has an approved map plan and is in municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
  • Your existing EMIs on all loans and credit cards (from Allahabad Bank and other banks) are no more than 60 - 70% of your net monthly income
  • You have not defaulted on loans or credit card dues to Allahabad Bank and other banks and all EMI's have been paid. Note that Allahabad Bank can see record or status of your EMI defaults to all banks and NBFC’s in India and not just to Allahabad Bank in your CIBIL report. Estimate your CIBIL score for free by using CIBIL score estimate calculator
  • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
  • If you are self employed in your own business or practice, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available
Are prepayment or foreclosure charges applicable on Allahabad Bank loan against property?

You can prepay loan against property (LAP) without any penalty or charges in case:

  • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
  • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

For loans from banks and NBFC's, refer to RBI circulars RBI/ 2013-14/ 582/ DBOD. Dir. BC. No. 110 /13.03.00/ 2013-14 dated May 7, 2014 and RBI/ 2014-15/121/ DNBS(PD). CC. No. 399/ 03.10.42/ 2014-15 dated July 14, 2014 for more details.

For loans from Housing Finance Companies, refer to NHB circulars NHB(ND)-DRS-Policy-Circular-63-14-15 dated Aug 14, 2014 and NHB-ND-DRS-Policy-Circular-No-66-2014-15 dated Sep 03, 2014 for more details.

Please contact myloancare at 8448389600 or care@myloancare.in in case you need any assistance or clarification on this subject.

Allahabad Bank Loan Against Property Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 0562-2582010
Ahmedabad 079-26442199
Ambala 0172-2709458
Anand 079-26442199
Aurangabad 022-24921986
Bangalore 080-25590985
Bhilai 1800-22-0363
Bhilwara 0141-2741334
Bhiwadi 022-24921986
Bhopal 0755-2583634
Bhubaneswar Cuttack 0674-2557563
Bikaner 0141-2741334
Chandigarh 0172-2709458
Chennai 044-28156607
Cochin 1800-22-0363
Coimbatore 044-28156607
Dehradun 0135-2713976
Delhi 011-23341669
Durg 1800-22-0363
Faridabad 011-23341669
Gandhinagar 079-26442199
Ghaziabad 0562-2582010
Goa 1800-22-0363
Greater Noida 011-23341669
Gurgaon 011-23341669
Guwahati 0373-2310965
Gwalior 0755-2583634
Hyderabad 040-27637738
Indore 0755-2583634
Jabalpur 0755-2583634
Jaipur 0141-2741334
Jalandhar 0172-2709458
Jodhpur 0141-2741334
Kanpur 0512-2545434
Karnal 0172-2709458
Kolhapur 022-24921986
Kolkata 033-22316634
Kota 0141-2741334
Kozhikode 1800-22-0363
Lucknow 0522-2286650
Ludhiana 0161-2440035
Madurai 044-28156607
Meerut 0562-2582010
Mehsana 079-26442199
Mohali Sas Nagar 0172-2709458
Mumbai 022-24921986
Mussoorie 0135-2713976
Nagpur 022-24921986
Nashik 022-24921986
Noida 011-23341669
Noida Extn 011-23341669
Panipat 1800-22-0363
Patna 0612-2224197
Pondicherry 1800-22-0363
Pune 022-24921986
Raipur 0771-4059516
Rajkot 079-26442199
Ranchi 0651-2560357
Rohtak 1800-22-0363
Roorkee 0135-2713976
Salem 044-28156607
Shimla 1800-22-0363
Sonepat 1800-22-0363
Surat 079-26442199
Trichy 044-28156607
Udaipur 0141-2741334
Vadodara 079-26442199
Varanasi 0562-2582010
Vijaywada 040-27637738
Vizag 040-27637738

Allahabad Bank Loan Against Property News - Dec 2018
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