Allahabad Bank offers housing loan to people who intend to purchase a house, carry out home renovation or are seeking home extensions. While opting for a home loan, the house itself acts as a security for the loan offered by the bank. The loans offered by Allahabad bank under the Aashiana Scheme can be used for the construction of a residential unit on an owned land or if an applicant wants to purchase a house or a flat for residential purposes only. They can also opt for the loan if they already own a house and want to extend, repair or renovate it. You can also apply for a loan if you want to purchase an old house or an unfinished house. The bank offers home loan to non-resident Indians as well or for any other person of Indian origin holding a passport of the country.
Allahabad Bank Home Loan Features & Benefits
Here are the key features and the benefits offered if you opt for a home loan offered by Allahabad Bank.
Simple eligibility criteria
Those who have an income from a regular source are eligible to apply for the housing loan offered by Allahabad Bank. While the minimum age to avail the loan is 21 years, the bank has relaxed the age limit to fully repay the loan to 70 years, which is slightly higher when compared to other banks offering a home loan.
The key benefit of applying for a home loan with Allahabad bank is that you can opt for a loan amount of your choice up to 5 crore rupees which are dependent on the eligibility criteria of an individual. This can be the right loan option if you are planning to purchase or construct a premium property/villa. The utilization of loan for purchasing a property is restricted to 60 percent of the total loan or at 85 percent of the total costs involved.
Allahabad bank offers easy loan repayment period in the form of equated monthly installments for a maximum of 30 years, or up to the attainment of 70 years of age. You are free to choose the tenure based on your convenience while you sign up for the loan. The Moratorium Period i.e, the waiting time the borrower gets during the loan term where he need not make payments is as follows –
3 months – Loan taken for house/flat furnishing or repairing
18 months – Loan taken for the purpose of construction of a house on a pre-owned land
24 months – Loan taken for the purchase of an under-construction Flat
Allahabad Bank Home Loan Eligibility Criteria
You must first check whether you are eligible for a home loan from Allahabad Bank before applying. Allahabad Bank offers home loan to people who have regular income for liquidating the loan amount sought from the bank. The minimum age to be eligible for a housing loan is 21 years and the maximum age to repay back is 70 years. HUF are not eligible for home loans offered by the bank. The loan is currently offered to individuals only.
An NRI applicant must either be self-employed or must be having a fixed income in order to become eligible for the loan. The minimum gross annual income should be equal to or greater than 3 lakhs per annum. A salaried applicant can take a loan amount which is 60 times his gross monthly salary. Other applicants become eligible for a loan amount which is five times their gross annual income as mentioned in their Income Tax Returns.
Allahabad Bank Home Loan Interest Rates
Interest rates charged on home loans offered by Allahabad Bank ranges from 8.40 percent to 8.90 percent. Special discounted rates are offered under the specific category of borrowers such as women, who are charged an interest rate of 8.40 percent. The loan interest is dependent on the loan amount which you are applying for. Higher the loan amount sought, lesser is the rate.
Your rate of interest is as well depending on your income. The rate of interest varies with your income as well. Higher is your income, lesser would be the rate. Differential rates are charged by the bank based on the kind of loan sought. Women borrowers are charged under floating or fixed rate schemes. The rate of interest may be higher or lower depending on the popularity or the special product offered. The existing customers of the bank are offered the lowest home loan rates depending upon their past relationship with the bank.
Allahabad Bank Home Loan Charges
The bank charges a certain fee in addition to the interest rates charged on the loan. A processing fee of 0.40 percent is charged to account for the expenses incurred for completing the lending process and to conduct a credit appraisal. Legal and technical charges are also added which is explained during the loan application process. In addition, prepayment charges are also added if you decide to transfer your loan to some other bank or want to opt for a foreclosure. As per the rules laid down by RBI, banks cannot charge prepayment charges on floating home loans.
Allahabad Bank Home Loan Documents Required
The loan documents to be submitted to the bank are dependent on your profession. For instance, salaried employees are required to fill up an application form if they wish to apply for a home loan. In addition, an identity proof has to be submitted with 2 passport size photographs and ITR of last two years. The identity proof can be a copy of your PAN, Voter ID, Passport or your driving license. You must submit a residential proof which can be a registered rent agreement or a utility bill of up to three months old.
Income documents should be submitted in the form of payslips of previous 6 months. You have to show your previous six month’s bank statements showing EMI debit if any, as well as salary credit. You must produce property documents in the form of allotment letter, latest property tax receipt, conveyance deed, sales deed or a copy of the approved plan for extension or construction.
Self-employed people need to fill in the loan application and submit 2 passport size photographs as well as an identity proof in the form of PAN, Voter ID, driving license or passport. Residential proof needs to be produced in the form of a utility bill of not less than 3 months old. Business proof also needs to be submitted in the form of service tax registration, business address proof and a copy of partnership deed. Property documents such as sales deed, latest property tax receipt as well as approval plan for extension or construction also needs to be submitted.