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Allahabad Bank Personal Loan Interest Rate

Current Allahabad Bank Personal Loan Interest Rate

Last Updated 05th Feb 2021

Interest Rate 12.15% - 12.65%
Tenure Upto 60 months
Processing Fee 1.06%, Min Rs. 1068
Loan Amount ₹ 50,000 to ₹ 7.50 Lakh
Minimum Income ₹ 20,000
Age 25 to 58 years
Prepayment Charges Allowed after 0 EMI's, 2.25%
Foreclosure Charges Allowed at 2.25%
  • Current Allahabad Bank personal loan interest rate starts at 12.15%.
  • Allahabad Bank offers special personal loan rates for borrowers who are existing bank customers or working in a reputed company.

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

Apply for Personal Loan @ 10.40%* Get upto ₹ 1,000* Cashback

Interest Rates on Allahabad Bank Personal Loan

Allahabad Bank personal loan interest rates depend upon a number of factors such as borrower’s occupation, credit score, employment history, loan requirement, etc. Apart, the Allahabad Bank personal loan rates differ across different types of borrowers such as salaried employees, self-employed, pensioners and women borrowers. Allahabad Bank offers personal loan to salaried individuals at a minimum rate of 12.15%.

Interest Rates of Allahabad Bank Personal Loan Schemes

One of the best ways to assess which personal loan scheme is best, is to assess the rate of interest offered in each scheme. The interest rate of each scheme varies depending upon various factors like, the repayment option, tenure, customer profile targeted by the scheme, etc.

Allahabad Bank loan for Govt Employees & Private Job Employee

While both salaried and self-employed professional can apply for a personal loan, salaried employees can avail Allahabad Bank personal loan at a comparatively lower interest rate. This is because salaried applicants have stability in their jobs with a fixed source of income. However, the rates and eligibility criteria for Govt employees and Private Job employees may vary in Allahabad Bank. The lowest personal loan rate for private employees is 12.15%.

Allahabad Bank Personal Loan rate comparison with other banks

Even though Allahabad Bank has some good personal loan schemes, you cannot be sure about the offerings from one bank unless you analyze multiple banks and their offerings.

Particulars Allahabad Bank HDFC Bank SBI
Rate of Interest Starting from 12.15% Starting from 10.50% Starting from 9.60%
Loan Tenure 12 - 60 months 12 - 60 months 6 - 72 months
Minimum Age 25 years 21 years 21 years
Processing Fee 1.06%, Min Rs. 1068 Upto 2.50% Min Rs. 1,999 1.00%
Maximum Loan Amount ₹ 7.50 Lakh ₹ 75 Lakh ₹ 15 Lakh
Prepayment charges Allowed after 0 EMI's, 2.25% Allowed after 12 EMI's, 2-4% Not allowed
Pre closure charges Allowed after 0 EMI's, 2.25% Allowed after 12 EMI's, 2 - 4% Allowed after 6 EMI's, 3%

Allahabad Bank Personal Loan Balance Transfer Interest Rates

Allahabad Bank personal loan balance transfer facility is ideal for existing personal loan customers, who feel that they are paying high interest to the lender. Through this facility, you can continue your existing personal loan with Allahabad Bank at a lower rate of interest. Thus you can switch the lender without closing the loan. Currently Allahabad Bank offers the lowest personal loan balance transfer rate of Nil.

Factors Affecting Allahabad Bank Personal Loan Rates

When you apply for a personal loan from Allahabad Bank, there are various factors which play their part to determine the rate of interest for your loan. Below are the factors which will affect your Allahabad Bank personal loan rates:

  • Tenure: The interest rates on personal loans are not entirely dependent on the loan tenure, but it does play a part. Based on the policy of the bank, the interest rate can increase or decrease with respect to a shorter or longer time period.
  • Credit Score: Since a personal loan is an unsecured loan, your credit score carries a lot of weightage in determining the rate of interest on your loan. Thus, make sure you apply for the loan when your score is above 800. If you are applying with a score below 800, then you need to be prepared to accept a higher rate of interest.
  • Income: Income is also an essential factor in determining the rate of your loan. With the higher income, you are likely to get into a lower interest rate bracket and vice versa.
  • Loan Amount: The amount of credit you have applied for also affects the rate of interest. Based on your applied loan amount rate of interest can change beyond what is advertised based on specific categories.
  • Repayment Capacity: Banks can also offer you lower interest rates if you have a good repayment capacity.
  • Existing Relationship: Banks also provide some benefits to the existing customers, especially those who have a good track record with the bank.

How to Get Low Interest Rates on Allahabad Bank Personal Loan?

You can get the lowest Allahabad Bank personal loan rate, by ensuring the below-mentioned things:

  • Ensure that you are aware of the Allahabad Bank personal loan eligibility and documentation requirements beforehand, so that you do not end up paying extra interest as a compensation for any shortcoming.
  • Ensure that you maintain a good credit score above 700, so that the lender is ensured of your repayment capability and credibility.Thus, does not charge a higher rate.
  • Ensure maintaining a low credit utilization ratio that highlights that the ratio of your credit availability to expenses is well maintained.
  • Lastly, ensure that you do not apply for a personal loan with multiple lenders apart from Allahabad Bank so that you do not seem credit hungry.

Allahabad Bank Personal Loan Charges

Allahabad Bank applies various charges on personal loans such as processing fee, part payment charges and foreclosure charges. Processing fee applicable on Allahabad Bank personal loan is 1.06%, Min Rs. 1068. Allahabad Bank offers part payment facility on personal loan after 0 month at 2.25% charges. Allahabad Bank offers foreclosure fee on personal loan to repay the entire amount after 0 month at 2.25%.

Interest Calculation Method for Allahabad Bank Personal Loan

The interest for Allahabad Bank Personal loan is calculated based on the following methods:

  • Flat rate method: As per the flat rate method calculator of Allahabad Bank personal loan interest rate, the loan rate is estimated on the original loan amount throughout the original loan tenure. Thereby the principal amount for calculation remains the same. This method is also called the fixed method of Allahabad Bank personal loan interest calculation.
  • Reducing rate method: As per the Allahabad Bank personal loan reducing balance method the interest rate is calculated on the outstanding loan amount. Therefore, the principal component that is paid during the monthly EMI is not chargeable for interest calculation. In this case the outstanding balance and the interest reduces with time, and the interest is charged only on the remaining principal amount.

The functioning of the above-mentioned methods for Allahabad Bank personal loan can be understood with the help of the following table:

ParametersFlat Rate Method Reducing Balance Method
Loan amount₹ 4,00,000₹ 4,00,000
Tenure36 months36 months
Rate of Interest12%12%
Total Interest payout₹ 1,44,000₹ 78,296
Monthly EMI₹ 15,111₹ 13,286
Savings₹ 65,704

Allahabad Bank Personal Loan Interest Rates Calculation

Let’s say Mr. Maheshwari earns a monthly salary of ₹ 35,000 . His credit score is 810, and he avails the Allahabad Bank personal loan of ₹ 4 Lakh for a tenure of 2 years. Given his excellent credit score, the interest rate charged on his loan is 12.15%. Thus, the monthly EMIs he would have to pay are listed in the table below:

Months EMIs Principal Paid Interest Paid Outstanding Balance
Feb 2021 ₹ 18,857 ₹ 14,807 ₹ 4,050 ₹ 3,85,192
Mar 2021 ₹ 18,857 ₹ 14,957 ₹ 3,900 ₹ 3,70,235
Apr 2021 ₹ 18,857 ₹ 15,109 ₹ 3,749 ₹ 3,55,126
May 2021 ₹ 18,857 ₹ 15,262 ₹ 3,596 ₹ 3,39,864
Jun 2021 ₹ 18,857 ₹ 15,416 ₹ 3,441 ₹ 3,24,448
Jul 2021 ₹ 18,857 ₹ 15,572 ₹ 3,285 ₹ 3,08,876
Aug 2021 ₹ 18,857 ₹ 15,730 ₹ 3,127 ₹ 2,93,145
Sep 2021 ₹ 18,857 ₹ 15,889 ₹ 2,968 ₹ 2,77,256
Oct 2021 ₹ 18,857 ₹ 16,050 ₹ 2,807 ₹ 2,61,206
Nov 2021 ₹ 18,857 ₹ 16,213 ₹ 2,645 ₹ 2,44,993
Dec 2021 ₹ 18,857 ₹ 16,377 ₹ 2,481 ₹ 2,28,616
Jan 2022 ₹ 18,857 ₹ 16,543 ₹ 2,315 ₹ 2,12,074
Feb 2022 ₹ 18,857 ₹ 16,710 ₹ 2,147 ₹ 1,95,364
Mar 2022 ₹ 18,857 ₹ 16,879 ₹ 1,978 ₹ 1,78,484
Apr 2022 ₹ 18,857 ₹ 17,050 ₹ 1,807 ₹ 1,61,434
May 2022 ₹ 18,857 ₹ 17,223 ₹ 1,635 ₹ 1,44,211
Jun 2022 ₹ 18,857 ₹ 17,397 ₹ 1,460 ₹ 1,26,814
Jul 2022 ₹ 18,857 ₹ 17,573 ₹ 1,284 ₹ 1,09,240
Aug 2022 ₹ 18,857 ₹ 17,751 ₹ 1,106 ₹ 91,489
Sep 2022 ₹ 18,857 ₹ 17,931 ₹ 926 ₹ 73,558
Oct 2022 ₹ 18,857 ₹ 18,113 ₹ 745 ₹ 55,445
Nov 2022 ₹ 18,857 ₹ 18,296 ₹ 561 ₹ 37,149
Dec 2022 ₹ 18,857 ₹ 18,481 ₹ 376 ₹ 18,668
Jan 2023 ₹ 18,857 ₹ 18,668 ₹ 189 ₹ 0

Check Other Banks Interest Rates

FAQs

What is the lowest personal loan rate in Allahabad Bank?

The lowest personal rate offered by Allahabad Bank on a personal loan is 12.15%.

What is the current Allahabad Bank personal loan interest rate per annum?

Allahabad Bank is the one of the leading personal loan lenders in India. Currently, it offers personal loans beginning from 12.15% per annum.

What is Allahabad Bank personal loan interest rate for existing customers?

Allahabad Bank offers pre approved loans to its existing customers with discounted rates and easier terms and conditions. Allahabad Bank personal loan interest rate for existing customers begins from 12.15%.

What are the Allahabad Bank personal loan interest rates for salary account holders?

The personal loan rates of Allahabad Bank for salary account holders range from 12.15% to 12.65%.

Can I ask for a reduction in the Allahabad Bank personal loan interest rate?

You can ask for a reduction in your Allahabad Bank personal loan interest rate. However, it depends upon the policy of the bank, whether it allows negotiation or not. Good credit score, high income, and existing relationship with the bank are some of the points which can contribute to the talks going your way.

Is there any need for security or collateral while availing Personal loan from Allahabad Bank?

No, there is no need for any collateral or security while availing a personal loan from Allahabad Bank. A personal loan is an unsecured loan; thus, it does not require pledging of any asset as security to avail the loan.

How can I close my Personal Loan from Allahabad Bank early?

If you want to prepay your entire personal loan from Allahabad Bank, then you can do so by making a lump sum payment. However, you should also inquire about the prepayment and foreclosure charges based on the personal loan scheme availed by you, before making any decision.


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Allahabad Bank Personal Loan News - Feb 2021
  • 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.
  • 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.
  • 2018-09-04 : Allahabad Bank raises Personal loan lending rate by up to 5 bps
    Allahabad Bank raised its interest rate on the personal loan by 5 basis points, following a hike in its MCLR. The new rate for the personal loan stands at 13.00%. The revised rates are currently effective.
  • 2018-08-17 : Allahabad Bank posts Q1 net loss of Rs 1944 crore
    Allahabad Bank reported a net loss of Rs 1944 crore for the first quarter against a net profit of 28 crores in the corresponding quarter a year ago. Gross Non-Performing Assets (NPAs) as a percentage of total loans stood at 15.97 percent in the quarter under review against 15.96 percent in the previous quarter, while Net Non Performing Assets (NPAs) were at 7.32 percent against 8.04 percent.
*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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