Allahabad Bank Car Loan

The Allahabad bank provides a car loan to Salaried persons, Professionals & Self-Employed, Businessmen, Firms, Companies, Agriculturist and Pensioners of Central, State Govt. having regular income to liquidate the loans. The Allahabad bank is offering a finance upto 85% of on-road price of the car at 9% per annum rate of interest. The on road price of the car includes one time registration + first time Road tax & insurance charges.


Allahabad Bank is a good fit for you if?

If you are having a minimum monthly income of 25,000 – The bank provides the car loan facility to the individuals having a monthly salary of 25,000. So anyone earning 25,000 or above than that can get a Dream car loan from the Allahabad bank.

If you can pay upto 25% of margin money – Although the Allahabad bank provides a loan upto 85% of the on road price of car but in that case you need to provide a guarantor or collateral security to the bank. If you can provide the margin money upto 25% then the bank squares off the condition of guarantee and collateral.

Allahabad Bank Car Loan at a glance

Annual Interest Rate

9%

Loan Term

Up to 84 months

Loan Amount

Upto 85% of the car value

Pre-Payment Charges

2.28% of the outstanding balance

Allahabad bank is offering a car loan to the salaried persons/Farmers/Professional & Self-Employed / Businessmen/Firm/ Companies at a rate of 9% per annum. The bank provides a maximum loan amount upto 3 times of net annual income/salary.

Allahabad bank is financing upto 85% of the on road price where the on-road price includes one time registration + first time Road tax & insurance charges. The repayment tenure is flexible upto 84 months for individuals and 60 months for the companies/firm.

Why Choose Allahabad Bank?

Borrow up to 85% of the Car Value – It provides the loan upto 85% of the on-road cost of car including one time registration + first time Road tax & insurance charges with a repayment tenure upto 7 years.

No Collateral Required upto Rs. 20 Lacs – The Allahabad bank is providing the loan upto 20 lakhs without any guarantor and collateral security. And even if the amount of loan exceeds 20 lakhs still the guarantee can be avoided by paying 25% margin money. The peers like corporation bank requires guarantor mandatory.

What to watch out for?

Higher Processing Charges and Pre-closure Fee – The Allahabad bank charges 0.50% of the loan amount as processing charges to a maximum of Rs.8696 and pre closure fee @2.28% per annum on outstanding amount. The peers in the market like Corporation bank is charging Nil for the prepayment of loan.

Compare Allahabad Bank Car Loans to Other Banks

Bank Name Allahabad Bank Bank of Baroda Corporation Bank

Typical APR

9%

8.60% - 10.35%

8.95% - 10.10%

Loan Term

2-7 years

Upto 7 years

Upto 7 years

Maximum Lending Amount

Upto 85% of on-road price

Upto 90% of on-road price

Upto Rs. 1 crore

Processing Fee

0.50% of the loan amount

Max Rs. 5750

Rs. 1000 to Rs.5000

1% of the loan amount

Min Rs. 1,000

Pre-Closure

2.28% of outstanding amount

4% of outstanding amount

Nil

The Allahabad bank offers a car loan at a rate of interest 9% per annum while the Bank of baroda offers a variety of interest rate starting from 8.60% upto 10.35%. The loan term of all three banks is same upto 7 years. The processing fee of Allahabad bank is 0.50% maximum upto Rs. 8696.

While taking a look on the other two peers, Bank of baroda is charging Rs.1000-5000 and the corporation bank is charging 1% of the loan amount as processing fee. The pre closure charges of Allahabad bank is 2.28% while the corporation bank is charging nil for preclosure and the Bank of baroda is charging 4% of the outstanding amount.

Am I Eligible?

  • Applicant can be a resident indian or a non-resident indian.
  • Minimum age of the borrower should be at least 21 years at the time of loan application.
  • The loan should be repaid at least three months before the date of retirement from service in case of Salaried applicant.
  • Maximum age of the borrower in case of non salaried person is 70 years at the time of repayment of loan.
  • Applicant can be an individual, a company or a partnership firm.
  • Applicant can also be a pensioners drawing monthly pension of Rs. 15,000 and above.
  • Minimum net take home salary/income of 30% after all deductions including EMI of the proposed loan.
  • In case of agriculturist Minimum 5 acres of irrigated land holding.
  • In case of companies/firms, they should be in existence for more than 2 years.

Loan Offerings

Allahabad Bank Dream Car Loan

  • Allahabad bank offers a plan named Dream car under which it is offering a car loan to the salaried persons/Farmers/Professional & Self-Employed / Businessmen/Firm/ Companies upto 85% of the on road price of car at a rate of interest of 9% per annum. The retired individuals earning a monthly pension of Rs. 15000 can also avail it; while the minimum income required for the salaried individual is Rs. 25000 per month. The loan comes with a repayment tenure of 7 years and the prepayment charges are also there at the rate of 2.28% of the outstanding amount. The Allahabad bank exempts the guarantee part upto 20 lakhs and only requires a guarantee for an amount exceeding 20 lakhs(If the margin offered is 25% then no guarantee/collateral required). The processing charges stands at the rate of 0.50% per annum with a maximum of Rs.5750.
  • Documents required for Salaried applicants:
    • KYC Documents
    • Income proof
      • Last one year ITR
      • Form 16 / letter from Employer
      • Last 6 months salary slip
    • 3 passport photographs
    • Any other document which may be required from case to case.
    • Proforma invoice of the dealer/sub-dealer.
  • Documents required for Self-Employed/Farmers applicants:
    • KYC Documents
    • 3 passport photographs
    • Proforma invoice of the dealer/sub-dealer.
    • Income proof
      • Last three years ITR
      • Profit and Loss statement and Balance sheet.

Allahabad Bank Car Loan Rate of Interest

Personal Loan Type Applicable Interest Rate

Allahabad Bank Dream Car Loan

9% per annum

How do I apply for Allahabad Bank Car Loan?

At Paisa

    • Click on ''APPLY NOW'' button
    • Fill the necessary details such as
      • Desired Loan Amount
      • Purpose of your loan
      • Your monthly salary
      • Select whether you are salaried or self-employed
      • Your name, email-id, contact no etc.
    • Click on ''SUBMIT

At Allahabad Bank Online Portal

  • You can apply for Allahabad bank car loan online through their website by inputting some basic information along with your loan requirements.
    • To apply online for a Allahabad bank car loan, click here.
    • Fulfill all the details like your monthly income, loan amount required, purpose and the contact details and press the "Submit application" button.

At Allahabad Bank Branch

  • To locate a branch near you click here. Enter your location/city and you will find a list of the branches available near you.
    • You can visit the nearest Allahabad branch with the necessary documents and can ask for an application form for car loan.
    • Attach all the necessary documents and re-check the application form for confirmation.
    • Submit the application form along with the documents to the Probationary Officer.

After I Apply?

Check Loan Status Online

    • To check the status of your loan application online, click here.
    • Click on the "I want to check my application status" tab and input your ticket number provided at the time of applying for the loan.

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

0.50% of loan amount

Rs.5750

Foreclosure Charges

2.28% of the outstanding amount

Inspection Charges

NIL

Documentation Charges

NIL

Allahabad bank charges 0.50% of loan amount maximum upto Rs.8696 as processing fee while the Bank of baroda is charging Rs.1000-5000. The foreclosure charges of the bank stand at the rate of 2.28% of the outstanding amount while the peer corporation bank do not charges for the foreclosure.

FAQs

What is the minimum salary required for loan?

The minimum salary required to get a Allahabad bank Dream car loan is Rs.25,000 per month. There is also another condition that the minimum net take home salary/income of borrower should be a minimum 30% after all deductions including EMI of the proposed loan. For the pensioners a credit of Rs. 15,000 in the shape of pension money into their account is required.

What is the maximum age criteria for salaried person?

The maximum age criteria for the salaried person depends on the retirement age of the person. As Allahabad bank offers that the loan should be repaid at least three months before the date of retirement from service.