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Personal Loan

Allahabad Bank offers personal loan to meet all the purpose that the borrower deems necessary. Employees of an organisation whose salaries are remitted through the branches of Allahabad Bank can opt for Allahabad Bank personal Loan. The personal loan provided by the bank is marketed as “New Saral Loan” and is available to salaried, self-employed, self-employed professionals (lawyers, doctors, etc.) as well as pensioners.

Features of Various Allahabad Bank Personal Loans

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.

Allahabad Bank Personal Loan Interest Rate

Allahabad Bank’s MCLR is 8.60%.


New Saral Loan: Allahabad Bank’s New Saral Loan’s interest rate is MCLR + 4.50%. The processing fee varies from one individual to another. A prepayment penalty is 2.25% of the outstanding balance in case of a takeover.


Loan to Pensioners: Interest rate for Allahabad Bank personal loans to Pensioners is MCLR + 3.50%. There is no processing fee charged under this loan scheme.


Loan to Doctors: Interest rate for a personal loan to Doctors is MCLR + 5% and the processing fee varies from one individual to another. The prepayment penalty in case of a takeover is 2.25% of the outstanding balance.


Home Appliances Finance Scheme: Interest rate for home appliances finance scheme is MCLR + 3.00%. The processing fee 1.00% of loan amount minimum Rs 500/-. The prepayment period is for a maximum of 36 months and the prepayment penalty in case of a takeover is 2.25% of the outstanding balance.


The following table records the Allahabad Bank personal loan interest rates and other criteria of each of the above-mentioned cases for easy understanding:

In case of New Saral loan:


Interest rate (Floating)


MCLR+ 4% (MCLR= 9.55%)


Loan Tenure


5 years


Pre-closure charges


2.25% of outstanding balance only in case of takeover


Guarantor Requirement


Guarantor required


In case Loan taken by Pensioner:


Interest rate (Floating)


BR+ 3% (MCLR= 9.55%)


Pre-closure charges


No Pre-closure charges


Guarantor Requirement


 Personal Guarantor required


In case Loan taken by doctors or medical practitioners:


Interest rate (Floating)


BR+ 5% (MCLR= 9.55%)


Pre-closure charges


2.25% of outstanding balance only in case of takeover


Guarantor Requirement


Personal Guarantor required


In case of Home Appliances Finance Scheme

Interest rate

MCLR + 2.50% per annum


Pre-closure charges


2.25% of outstanding balance only in case of takeover

Documentation Required

Availing the loan requires the submission of the following documents:


  • A copy of the passport, driving license or the Voter’s ID card which shows the applicant’s name against his photograph. This document would serve as the valid identity proof of the applicant.
  • Age proof- Copy of Passport / Voter ID card / PAN Card. Any one of the document can be submitted as a valid Age Proof because all the listed documents have the individual’s photograph along with his or her name against the photograph and date of Birth proving the age of the applicant.
  • Application Forms to be filled up correctly. The motive of this form is to get all the information of the borrower, so it’s the main responsibility of the borrower to provide true and correct information and the form should be signed.
  • The ration card copy, telephone or electricity bill copy, copy of the passport or the rental agreement which would state the name of the applicant and the place of residence. These documents are the address proof of any individual and would be required by the bank for address verification purposes.
  • The bank statement of the last 6 months of the bank account held in the name of the applicant. This statement would give a fair picture of the individual’s financial status which is a factor in determining the applicant’s creditworthiness.
  • If the individual earns a salary then he should submit his Salary Slip of the last 3 months or his current Salary Certificate along with his Form 16 and the latest Income Tax Return filed by him. This would show the actual salary the applicant earns and would be a tool to measure if the salary measures the minimum salary criterion as applicable in the eligibility section
  • For self- employed applicant: Last 3 years Income Tax Returns with computation of Income and last 3 years CA Certified/ Audited Balance Sheet & Profit and Loss Account which is used to legally depict the current net income of the individual and to check whether it matches the level of minimum net monthly income as laid down in the eligibility criteria checklist.

Allahabad Bank Personal Loan EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.


Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Checking Loan Status

Applying for the loan does not guarantee immediate sanction of the loan because the bank would analyze and verify the personal details of the applicant as provided by him in the application form. Then the bank would check whether the applicant meets the required eligibility criteria based on the Application Form and the documents submitted by him. After the bank is satisfied with the applicant honoring the loan in full, the loan would be granted. Meanwhile, if the applicant wants to check the status of his application, he can do so on the Paisabazaar.com website.

Why Choose Allahabad Bank Personal Loan?

The New Saral Loan from Allahabad Bank is an unsecured or signature loan specifically designed to meet expenses be it medical bills, debt consolidation, a vacation overseas or anything else. Allahabad Bank’s personal loan is available to self-employed professionals and salaried individuals alike, which make it an option for those seeking personal loans for various purposes. Allahabad Bank even offers these unsecured loans to pensioners in case they get their pension credited to their Allahabad Bank account.

Applying for an Allahabad Bank Personal Loan

The Allahabad Bank Personal Loan can be applied through the Paisabazaar.com website which allows for Allahabad Bank Personal loan online application. The whole process involves some simple steps which are easily seen on the website and providing the personal details of the applicant for checking the eligibility. These details include the name, age and address of the applicant, the occupation in which the applicant is engaged in, the income generated from the occupation of the applicant mentioned before, the amount of loan which is required by the applicant, the type of loan sought, the tenure within which the applicant is intending to pay off the loan availed from the bank, the security, if any which is required for the loan availed, etc. by furnishing these details , the site analyses the conformity to the prescribed eligibility criteria and if everything is found to be satisfactory, the loan application process is completed and the loan is disbursed through the bank.