About the Bank
Allahabad Bank is a leading nationalized bank of India. It was founded on April 24th in the year 1865 by a group of Europeans and is headquartered at Kolkata. It is the oldest Joint Stock Bank of India and has over 2500 branches spread across the entire country. One of the prominent offerings of Allahabad Bank in its portfolio of retail credit products includes the comprehensive car loans offered by Allahabad Bank.
Allahabad Bank offers its customers a many types of loans and many other financial and banking products at competitive interest rates. One of the best car loans in India, the Allahabad Bank car loan can help you in buying your dream car. From cars and vans, to JEEPs and multi utility vehicles (MUVs), a car loan provided by Allahabad Bank will ease your worries about finances and help you bring home your own car. Whether it as an Allahabad Bank car loan for a new car or a used car loan, Allahabad Bank provides the advantage of quick approvals, flexible tenure for a car loan, as well as hassle-free EMI repayment deals. No matter what the applicant’s employment field is Allahabad Bank car loans are offered as some of the greatest deals on car loans. Salaried individuals, businessmen, self-employed professionals, agriculturists, firms, and companies are eligible to apply for an Allahabad Bank car loan. As long as the applicant can show that they have a regular monthly income to enable them to repay the loans, they can apply for a car loan from Allahabad Bank. The used car loan extension of the Allahabad Bank car loan offers nominal car loan interest rates, making the pre-owned car loan by Allahabad Bank an ideal solution for prospective car buyers. Allahabad Bank will disburse car loans for used cars only in the cases where the car is not older than 3 years from its date of registration.
Features of Allahabad Bank Car Loan
- An Allahabad Bank Car loan can be availed for the purchase of a new car for personal use or official use and of pre-owned cars.
- There is no restriction in the maximum number of cars that can be financed to Individuals, Partnership Firms and Companies.
- Repayment period for new car is up to 84 months (individuals) and up to 60 months (Firm/ Companies).
- For used cars the maximum repayment tenure is 60 months or the residual life of the vehicle (whichever is lower).
- Floating type of interest rate is applicable
- The margin for buying new cars with an Allahabad Bank car loan is 15% of the on road cost of the vehicle. This includes charges like the first time road tax, one time registration charges, insurance charges, etc.
- The margin for buying a pre-owned car is 85% of the “decided buying price” (as decided by an approved automobile valuation) or 60% of the vehicle’s valuation (whichever is lower).
- The loan limit for an Allahabad Bank car loan is a maximum of three times of the net annual income or salary of the applicant. Salary of an immediate family member can also be clubbed with that of the main applicant to increase their car loan amount eligibility.
- The Allahabad Bank car loan interest rates are not only kept at low competitive levels, but the Bank also offers Allahabad Bank car loan interest rates on a used car loan that are not much higher than on loans for new cars.
- The Bank charges a small amount as processing fee for Allahabad Bank car loan, but charges no penalties on prepayment of the car loan if it is paid off in full.
- Until the car loan is paid off in full, the vehicle that has been bought has to be hypothecated to Allahabad Bank. After the Allahabad Bank car loan has been repaid, the full ownership of the car will be transferred to the borrower.
- As collateral for a car loan up to Rs. 20 lakh, the spouse will have to be listed as a co-borrower, if their income has been clubbed with the applicant’s income and considered as eligibility. For a loan above Rs. 20 lakh, a guarantee of an individual, as well as collateral security in the form of mortgage of property, or as KVP/ NSC/ FDR, etc. is required.
- If the margin given is more than 25% then there is no requirement for a guarantee or collateral security.
A car loan provided by Allahabad Bank has a number of features that make it a good choice for borrowers. However, there are a number of factors that help ascertain whether or not an applicant is eligible for an Allahabad Bank car loan. These requirements, or factors, that affect a car loan application differ with the different kinds of target groups.
- Our existing corporate customers, their directors and employees
- Salaried persons,
- Self-Employed & Professionals Individuals
- Agriculturist, and
- Pensioners of Central, State Govt. and Allahabad Bank
Allahabad Bank Car Loan Eligibility Criteria for salaried person
- The applicant for the Allahabad Bank car loan should be at least 21 years of age
- The applicant should be able to show that they have a regular monthly income
- The minimum monthly salary of the applicant must be at least Rs. 25,000/-
- Based on the tenure that the applicant wishes to choose, the Allahabad Bank car loan should be repaid at least 3 months before the date of retirement from service
Allahabad Bank Car Loan Eligibility Criteria for person other than salaried
- If the applicant is an agriculturist, they must be able to show that they have minimum 5 acres of irrigated land in their name.
- For retired individuals, it is required that they must have a monthly pension of at least Rs. 15,000/- and above for eligibility for Allahabad Bank car loan.
- For self-employed & professional individuals and businessmen, the eligibility criteria include an IT assessment; if applicant provides a full collateral security and income tax assessment order, the IT assessment requirement may be waived.
- Based on the tenure that the applicant wishes to choose, the loan should be repaid before the applicant attains 70 years of age
Allahabad Bank Car Loan Eligibility Criteria for firm/companies
- The net profit earned by the firm or company must be sufficient enough for the repayment of Allahabad Bank car loan
- The firm or company should have been be existing in the same business field for at least 2 years
Proofs of Income of the applicants
The car loan amount eligibility of the applicants is based on the net income, as the maximum loan amount that is allowed to an applicant is calculated at three times their annual income. That is why an applicant can increase the loan amount that they are eligible for, by clubbing the income of an immediate family member to their own. The following are the required income documents for Allahabad car loan.
- 3 months’ salary slips, or
- Form 16, or
- Income Tax Returns of the applicant (s)
Self Employed Individuals:
- Income Tax Returns for the last 3 years, or
- The CA certified and audited Profit & Loss account the balance sheet for the last 3 years
- The Income Tax Returns for the last 2 years, or
- Audited financials for the last 2 years
Private Limited Company / Ltd. Co
- The Income Tax Returns for the last 2 years, or
- Audited financials for the last 2 years
Factors that can affect the eligibility for an Allahabad Bank car loan
The eligibility of an applicant for an Allahabad Bank car loan can be affected by a number of factors. With the ability to affect the eligibility of the borrower both positively or negatively, these factors help a bank decide on a lot of aspects of the car loan, like the total eligible loan amount. These factors include:
- The applicable Allahabad Bank car loan EMI, should not exceed more than 50% of the gross monthly salary of the applicant. The applicant’s income of course affects the repayment capabilities of the applicant, therefore if a major part of the income of an applicant was to go into the repayment of EMIs, the repayment capabilities of the applicant would be considered as risky.
- The car loan from Allahabad Bank is capped at 85 % of the car’s ex-showroom price
- Eligibility for a car loan from Allahabad Bank is also affected by the applicant’s existing EMI amount responsibilities. Any existing EMIs will work to reduce the applicant’s income, which, as mentioned above, will then affect the repayment capabilities of the applicant.
- The CIBIL score of an applicant is not the most important factor, as it is in unsecured loans. This is because Allahabad Bank car loans require security to be put up against the loan, but a good CIBIL score and a clean credit history can only help in increasing an applicant’s eligibility.
There are a number of other factors that can assist an applicant in increasing their eligibility for an Allahabad Bank car loan. This includes a number of ways like clubbing the income of an immediate family (like a spouse, son, unmarried daughter, or parents) as co-applicants for the loan. Another way to improve your eligibility is by opting for longer repayment tenures, as they will result in a lower car loan EMI amount, thereby decreasing the applicant’s risk factor.
Floating interest rate is applicable in case of an Allahabad Bank Car Loan
The effective interest rate:
- For new Vehicle is MCLR +0.25%
- For pre-owned Vehicle is MCLR+0.75%
Charges and other details for applying for the Allahabad Bank car loan:
- MCLR rate:- 9.55%
Processing fee for Allahabad Bank car loan:
- 0.50% of the loan amount (maximum Rs.5,750)
- Loan Tenure: 1 to 7 years
- Pre closure charged: 2.28 % of the outstanding balance (in case of takeover)
- Guarantor requirement: NIL
Car loan disbursals by the Allahabad Bank first require the applicant’s to submit the required documents. These documents include:
- The Allahabad Bank car loan application form, duly filled
- Passport sized photographs
- Photo identification of the applicant
- Proof of age of the applicant
- Proof of residence of applicant
- Income proof of the applicant
- Things to remember before applying for car finance plans
- A car loan is a long term financial commitment. Before you apply for a car loan online, you should be aware of the basics that go into it.
- EMIs are not the end all deciding factors
- Even if an EMI option seems reasonable and affordable, it does not imply that it is the best available option. Smaller EMIs mean longer tenures, and longer a longer tenure for a car loan just means more car loan interest rates that a borrower has to pay. So before choosing car finance plans make sure that you look at the bigger picture and consider all the relevant factors.
- ‘Zero Down Payment’ is not always best
- At the time of buying a car, not having to pay a down payment would of course seem very tempting to any borrower. But fact remains that the amount will still have to be paid. It would end up either increasing the car loan EMI amount, or the loan tenure, resulting in a higher interest outflow.
- Stick to the decided limit
Assess everything with a logical outlook. Many times you might be tempted to stretch the financial limit that you had set for yourself.
- The Shorter Term
Longer terms ensure lower monthly car loan payments, but it also means more interest paid. So whenever you are applying for the car loan, make sure that you choose the shortest term that you can easily manage.
Important things to remember
When one applies for a car loan, they are signing on to a financial commitment that will be there for quite a time, Therefore, before taking a decision, an applicant should consider all of the factors, as well as the Allahabad Bank car loan details that are involved in the process. A number of factors are involved when an applicant wishes to apply for an Allahabad Bank car loan. Throughout the entire process the following factors need to be kept in one’s mind, this is to ensure that the applicant is able to make a beneficial and well informed decision:
- Prepayment Charges
- Interest Rate
- Processing Fees
- Down Payment
- Car loan EMI
The factors that affect the eligibility requirements for Allahabad Bank car loan, are also the factors that can affect the total principal amount that an applicant will be eligible for, as well as the car loan interest rates that they will be offered. So pre-checking where your eligibility for an Allahabad Bank car loan stands can help you see where your car loan application lacks, thereby helping you in improving your eligibility.
Check Your Car Loan Eligibility at PaisaBazaar prior to applying for a car loan to know the criteria you need to fulfill for an Allahabad Bank Car Loan.
How it works
- Step 1: Select what type of car you are looking for – New or Used
- Step 2: Select or enter the city where you are residing
- Step 3: Select or enter the make of the car that you wish to buy then select the model of the car (in some cases, you might also have to select the variant of the model that you wish to buy)
- Step 4: Enter details about when you are looking to but the car
- Step 5: Next, you need to select the amount that you would like to borrow
- Step 6: Select the tenure of the loan that you wish to apply for
- Step: Select your form of employment. After that, salaried individuals will need to fill in the name of their employer, and self-employed professionals or businessmen will have to select their profession type
- Step 7: Enter your gross annual income
- Step 8: Enter the amount of EMI that you have to pay at present
- Step 9: Select the bank that you already have a bank account with
- Step 10: Enter your personal details like your name, gender, date of birth, email id, mobile number, etc. and click on ‘View all Offers’ to see the loans that you are eligible for.
The car loan EMI, otherwise known as the equated monthly installment, can be considered as one of the most important factors of any car loan that an applicant should consider. Though the attractive Allahabad Bank car loan interest rate does play an important role in the whole process, it is the car loan EMI that really assists the applicant in an Allahabad Bank car loan. The EMI is the amount that a borrower will have to pay to the bank every month, so it becomes important that they choose an EMI that does not put any undue financial pressure on them. When EMIs happen to be so important, the borrower should try to know all that they can about the EMI. There are a number of facts involved in when you try to calculate EMI for Allahabad Bank car loans. The aspects that affect the EMI for an Allahabad Bank car loan include various elements like the car loan interest rates, the total loan amount paid out to the borrower, the tenure of the car loan, etc. Another important thing to note is the fact that the ratio of the interest rate to the principal amount in the monthly payments varies throughout the tenure of the Allahabad Bank car loan. The interest is a much larger component in the repayment amount at the beginning of the loan tenure, but keeps decreasing as time passes. This varying ratio affects the borrower in the case where they wish to make a partial prepayment of the loan amount.
You can calculate the EMI applicable for your Allahabad Bank car loan using the following formula:
EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]
P = Principal loan amount
R = Car loan interest rates offered
N = Loan tenure, in months (or, the number of installments applicable)
An easier way for calculating the EMI for an Allahabad Bank car loan will be to use a car loan EMI calculator before applying for the Allahabad Bank car loan. The Allahabad Bank car loan EMI calculator will assist you in the calculation of your applicable amount of EMI for the various Allahabad Bank plans. The Allahabad Bank car loan EMI calculator requires you to enter the principal amount, the Allahabad Bank car loan interest rate, and the loan tenure, to provide you with the EMI that you will have to pay.
Using the Allahabad Bank car loan EMI calculator
The need to calculate the applicable EMI, before opting for an Allahabad Bank car loan online has led to an increase in the importance of a car loan EMI calculator. To have a concern about how much amount a borrower will be liable to pay for their Allahabad Bank car loan is justified. That is why you can use the PaisaBazaar car loan EMI calculator to get a clear picture of the amount of money a loan will cost you every month, throughout its tenure. The EMI calculator for a car loan can be found on the PaisaBazaar website under the tab for “tools”. No matter what your purpose, be it research or for information, or just for curiosity’s sake, before availing car loan, you should make sure that you use the calculator to be better informed about the EMI that you will have to pay for a particular loan. The steps for using this calculator are listed below:
Using the PaisaBazaar EMI calculator for an Allahabad Bank car loan
Enter the principal amount of the car loan that you wish to apply for.
In the section right below the first, put in the interest rate for the car loan that has been offered to you.
In the third part, you are required to enter the loan tenure that you would like opt for making the repayments. The loan tenure with Allahabad Bank can vary from 1 year to 7 years.
As you enter the required details, on the right side of the calculator, the amount that will be payable as EMI for that particular Allahabad Bank car loan option will be visible. Another aspect of this EMI calculator is that you can simply change any or all the values in the three sections and view the changed EMI immediately.
Individuals wishing to apply for an Allahabad Bank car loan online can apply through a number of ways, made available to the customers in order to ensure a hassle free application process.
- You can visit the branches of Allahabad Bank, receive details for various finance options that are available for an Allahabad Bank car loan, and proceed to apply for the car loan.
- Another way through which you can apply for an Allahabad Bank car loan is online, through the official website for Allahabad Bank.
- Another way to apply for an Allahabad Bank car loan online is through the PaisaBazaar website.
- Customers with an Allahabad Bank account are sometimes provided with pre-approved car loans and the option to avail them if they wish.
1. What types of cars are financed under the Allahabad Bank Car Loan scheme?
A. Allahabad Bank offers car loans to finance used as well as new vehicles. You can avail finance for car, van, jeep and Multi Utility Vehicles (MUVs)
2. What is the maximum loan amount that I am eligible for?
A. The maximum loan amount that can be availed is 3 times the net annual income or net annual salary of the loan applicant
3. Can I get finance for an old car? How old car can be the pre-owned car?
A. Yes, you can get a pre-owned car financed but it should not be more than 3 years old
4. How much processing charge I need to pay for the car loan?
A. The processing charge you need to pay for Allahabad Bank Car Loan is 0.50% of the loan amount subject to a maximum amount of Rs.5,750/-
5. Can a borrower pre close their car loan?
A. Yes, a borrower is allowed to pre close their car loan from Allahabad Bank. They will be charged a fee if there is a loan takeover or balance transfer.
6. If I want to pre-close my loan, how much extra I will need to pay?
A. You can pre-close your car loan by paying 2.28% of the outstanding balance only in case of take over.
7. Are there any charges that are applicable if an Allahabad Bank car loan is applied for through PaisaBazaar?
A. PaisaBazaar is an absolutely free end to end service and there are no charges applicable on loan applications done through PaisaBazaar.
8. Who all are eligible to apply for an Allahabad Bank car loan?
A. Car loans by Allahabad Bank are offered to companies, individuals and partnership firms that can show a regular monthly income. This includes Firms, Companies, Professionals & Self-Employed Individuals, Businessmen, Salaried persons, Pensioners and Agriculturists of Central or State Government and Allahabad Bank.
9. What is the income requirement for taking a car loan from Allahabad Bank?
A. The minimum income required for a car loan from Allahabad Bank is as follows:
- Salaried individuals: Rs. 25000 gross monthly income
- Self-employed, working professionals and businessmen: IT assessment
- Firms and companies: net profit should meet the loan repayments
- Retirees: Rs. 15000 per month
10. What is the minimum car loan amount that an applicant can get from Allahabad Bank?
A. There is no minimum limit on the car loan amount available from Allahabad Bank.
11. What are the minimum and maximum loan tenures for a car loan by Allahabad Bank?
A. There is no minimum loan tenure for an Allahabad Bank car loan. The maximum loan term for a car loan by Allahabad Bank car loan is 84 months for individuals wishing to purchase a new car, 60 months for individuals wishing to buy a pre-owned car, and 60 months for firms and companies.
12. How many cars can an applicant get financed from Allahabad Bank?
A. There is no limit to the no. of cars that an individual might get financed by Allahabad Bank.
13. Can an applicant purchase a car for official purposes with a car loan by Allahabad Bank?
A. Yes, the car loan offered by Allahabad Bank can be used to finance cars that are purchased for personal as well as for official purposes. However, for the purchase of commercial vehicles, Allahabad Bank has a separate scheme available.
14. What is the interest rate applicable on a car loan from Allahabad Bank?
A. Currently the MCLR rate for a car loan from Allahabad Bank is 9.55%. The interest on new vehicles is 9.80% and 10.30% for pre-owned vehicles.