One of the leading nationalised banks in India, Allahabad Bank offers some of the best MSME loans available at interest rates, as low as 12.75% onwards. MSME loans can be used for various purposes, such as business expansion, buying new equipment, meeting working capital needs, hiring staff, paying off salaries, fulfilling cash flow deficit, etc.
Allahabad Bank Business Loan Interest Rate 2021
|Allahabad Bank MSME Loan (Trade/Vyapar) – 2021|
|Interest Rates||12.75% onwards|
|Minimum Loan Amount||Rs. 10 lakh|
|Maximum Loan Amount||Up to Rs. 5 Crore|
|Repayment Tenure||Max. up to 84 months|
|Repayment Tenure||Term Loan: Max. up to 84 months|
Clean Term Loan: Max. 3 years
Working capital: Subject to renew every year
|Prepayment Charges||2.25% of Outstanding Amount|
|Collateral||Coverage minimum of 75% for existing customers, 100% for new proposals if not covered under CGTMSE scheme|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
AllBank Vaypar Loan is majorly availed to meet the working capital requirements and for the purchase, expansion, renovation and upgradation of shops, showrooms, franchises, garages, offices for professionals and much more.
- All traders such as individual businesspersons, companies or cooperative societies engaged in lawful and unrestricted trading activities are eligible to apply for business/MSME loans at Allahabad Bank
- All businesses and agencies providing services such as xerox, dry cleaning and possessing licenses in dealing with petroleum products, auto service stations and ISD, STD or PCO booths are eligible to apply for these loans
- All traders and businesses with a legitimate registration certificate or license are eligible to apply for this loan
Any applicant for a business loan from the Allahabad Bank will need to have been in business for at least 1 financial year and must possess proof a profitable business
- Other factors that influence eligibility for loans include your loan repayment track record, credit performance, ability to serve debts, business vintage, financial ratios and existing relationship with bank
Documents Required for Loan Application
- PAN Card: This is required for any individual, company or partnership firm
- Passport-size photographs of all applicants
- Proof of Identity: Applicants will need to submit at least one identity proof, such as copy of Voter’s ID card, driving license, passport or Aadhar card
- Proof of Address: Voter’s ID card, driving license, passport, utility bills, registered lease deed or bank statement (Any one)
- Ownership Proof: This includes documents of address of either office or residence
- Proof of Business Continuity: This can be any one document that dates back to at least 5 years, such as bank statement, IT return, incorporation certificate or partnership deed
- A letter certifying the proposed use of business loan, known as business plan
Applying for Business Loan in Allahabad Bank
Interested applicants can apply for Allahabad Bank business loan by visiting the nearest branch submitting the application form along with required documents. One can also apply online for a business loan. However, firstly applicant needs to check his/her eligibility status and the documents that he/she will need to submit in order to avail business/MSME loans from Allahabad Bank.
Toll Free Number: 1800 57 22 000
Also Know – How to calculate a business loan EMI
Frequently Asked Questions
Q. What is the maximum loan amount that I can avail from the Allahabad Bank?
Ans. You can avail of a maximum of Rs. 5 crore.
Q. What is the repayment tenure for business loans from the Allahabad Bank?
Ans. Loan repayment tenure period is up to 84 months.
Q. What are the pre-payment charges on a business loan from Allahabad Bank?
Ans. In case, you wish to repay the entire loaned amount before the end of the tenure period, you will need to pay a prepayment charge of 2.25%.
Q. Is there an age limit to avail of business loans from the Allahabad Bank?
Ans. You cannot be more than 65 years of age to avail business loan from Allahabad Bank.