Allahabad Bank Saral Personal Loan
Purpose: Some of the reasons why a customer with Allahabad Bank may apply for a personal loan include the purchase of two-wheeler, consumer durables, home renovations, vacation, and debt consolidation as well as any other types of expenses that are allowed by Allahabad Bank. As per current regulations, the Allahabad Saral Personal Loan cannot be used by the person for investment purposes.
Loan Amount: Amount given as Allahabad Bank Saral Personal loan cannot exceed 24 times the present gross monthly salary of the applicant. Allahabad Bank Saral Personal Loan can be availed for up to Rs.7.5 lakhs and the minimum amount of Allahabad Bank Saral Personal loan is Rs.50,000. After deduction of the EMI of the Loan, the borrower should take home a salary of not less than 40% of the net monthly income.
Margin: Margin is 10% on the Total Asset owned or to be purchased by the borrower.
Repayment: Loan should be repaid in a maximum of 60 EMIs, and borrower should repay all the EMIs one year before his/her retirement. Thus the Allahabad Bank Personal loan should be repaid within 5 years.
Security: Guarantee of parents is required in case the applicant is unmarried. Collateral is the product which is financed or is existing with the borrower that covers the full value of the loan amount.
Simply put, it means that the bank wants to reasonably assess whether the applicant will be able to meet the EMI payments required after availing the loan by looking at his net monthly income.
Personal Loan for Pensioners
Following are the features of a Personal loan taken by a pensioner:
Purpose: To meet the personal or domestic requirement a pensioner can opt for a personal loan, but they cannot avail the loan for speculative purpose. It means that a pensioner can take a loan for meeting his/her personal or domestic needs but he/she cannot apply for a loan for speculative purposes.
Loan Amount: A pensioner can take loan of an amount equal to his/her 10 months’ pension amount, subject to the maximum limit as follows:
Maximum of Rs.2 lakhs can be taken as a loan in case the pensioner is 65 years of age.
Maximum of Rs.1 lakh can be taken as a loan in case he/she is above 65 years of age.
Minimum of Rs 25000 can be taken as a loan by the pensioners. Loan installments should not be more than 50% of the monthly pension of the pensioner.
Margin: No margin is required for pensioners.
Repayment: In a maximum of 48 months the loan should be repaid. It means a pensioner should repay the loan amount in 48 months or less.
Insurance: A Group Personal Accident Insurance Policy of Rs.2 lakhs is provided by Allahabad Bank irrespective of the loan amount taken by the pensioner to cover the accidental death.
Security: Personal guarantee is needed as security, without any personal guarantee a pensioner cannot avail this personal loan. To cover the loan amount liquid security is also to be provided by the pensioner.
Allahabad Bank Personal Loans for Doctors or Medical Practitioners
Following are the features of personal loan taken by a doctor or a medical practitioner:
Purpose: For meeting any personal expenses or any other expenses of professional requirements doctors can apply for the personal loan from the bank.
Loan Amount: Doctors can apply for an Allahabad Bank Personal loan of an amount equal to the salary or Rs.5 lakhs whichever is lower. It means that doctors can avail a loan of the lower amount which is either equal to their salary or Rs.5 lakhs. The annual income should be the income as per the Income Tax Return submitted to the income tax department.
Repayment: In maximum of 60 months loan should be repaid. It means a doctor or a medical practitioner should repay the loan amount in 60 months or 5 years or less. EMIs should be paid through post-dated cheques for the purpose of repayment.
Security: Neither primary nor collateral securities are mandatory to avail the loan.
Home Appliances Finance Scheme
This is another personal loan from the bank among the different types of Allahabad Bank personal loans. This loan helps the borrowers to buy home appliances. The features of the loan are:
Purpose: The loan can be used to buy all household related consumer durables.
Loan amount: The minimum amount of loan available is Rs.25, 000 while Rs.2 lakhs is the maximum loan available under the scheme.
Margin: This is a term loan which is offered at 80% of the value of the durable, i.e. 20% is the margin of the cost which is retained by the bank.
Repayment: The loan is to be repaid within a maximum tenure for Allahabad Bank Personal Loan of 36 months. The calculation of the repayment period would start from the next month in which the loan is disbursed.
Overdraft Facility in Savings Bank Account
This is also a type of personal loan which can be availed by Saving Account holders of the bank for personal financial emergencies. The loan features include the following points:
Purpose: The loan can be used for meeting any type of personal emergencies of a financial nature.
Loan amount: There is no minimum limit which can be taken as an overdraft facility. However, the bank limits the maximum amount of overdraft which can be withdrawn against the Savings Accounts. The maximum limit of the loan is Rs.40, 000 or one month’s net salary rounded off to the nearest thousand on the lower side whichever is lower.
Repayment: The loan should be repaid back within one year from the date of availing the facility.
Loan against NSC / KVP
This is a personal loan which is granted against the security of instruments like the National Savings Certificate (NSC) or the Kisan Vikas Patra (KVP). The loan features have the following salient points:
Purpose: The loan can be utilized for any sort of business or personal purposes. However, any type of speculative purposes cannot be funded using the loan amount.
Loan amount: The minimum amount of loan offered by Allahabad Bank is Rs.10, 000. There is no maximum limit of loan offered because, after the specified margin requirement, the loan would depend on the value of the instrument pledged, i.e. the value of the NSC or the KVP. If the instrument is more than 3 years old, no margin would be required and the entire value of the instrument would be sanctioned as a loan. If the age of the instrument is more than 2 years but lower than 3 years, the bank retains a margin of 10% and offers 90% of the value of the instrument as a loan. Lastly, if the age of the instrument is less than 2 years, 25% margin is retained by the bank and only 75% of the value of the instrument is offered as a loan.
Repayment Period: The loan availed under this scheme should be repaid back within the remaining tenure of the instrument pledged for acquiring the loan or for a lower tenure. A term loan would be issued which is payable through Equated Monthly Instalments.
Security: For availing the loan, the NSC or the KVP is required to be pledged with the bank and a noting of lien with the Post Office is also required.