Established in Allahabad in 1865 and subsequently nationalised by the Indian government in 1969, Allahabad Bank served as a banking and financial services provider for 155 years. In 2020, it was amalgamated with Indian Bank, marking the culmination of its operations. Allahabad Bank offers a range of financial products and services. The bank offers a car loan facility with competitive interest rates starting from 8.75% per annum for new cars.
The loan tenure can go up to 7 years, and the bank provides up to 85% of the car's on-road price as the loan amount. The loan can be availed by salaried and self-employed individuals, as well as corporates and partnerships.
The Allahabad Bank Car Loan is designed to provide customers with a hassle-free and affordable way to purchase their dream car. Here are some of the key characteristics of the loan:
Competitive Interest Rates: The bank offers attractive interest rates starting from 8.75% per annum for new cars. The rates may vary based on the loan amount, tenure, and borrower's creditworthiness.
Loan Amount: The bank provides up to 85% of the car's on-road price as the loan amount, making it easier for customers to buy their dream car without having to pay a significant amount upfront.
Loan Tenure: The loan tenure can go up to 7 years, providing customers with flexibility in choosing the repayment period that suits their financial situation.
Processing Fee: The bank charges a processing fee of around 0.50% of the loan amount, subject to a maximum limit of Rs. 10,000.
Eligibility Criteria: The loan is available to salaried and self-employed individuals, as well as corporates and partnerships. The borrower should be between 21 to 65 years of age, with a minimum income requirement of Rs. 25,000 per month for salaried individuals and Rs. 3 lakhs per annum for self-employed individuals.
As of May 2023, Allahabad Bank offers car loans for new cars at a minimum interest rate of 8.75% per annum. The interest rate for used cars may be slightly higher and may vary based on the borrower's creditworthiness, loan amount, and tenure.
The processing fee charged by the bank for car loans is around 0.50% of the loan amount, subject to a minimum of Rs. 500 and a maximum of Rs. 10,000.
Additionally, the bank may also charge fees for prepayment, foreclosure, late payment, or any other service availed by the borrower. Before applying, it is advisable to check with the bank for the latest charges applicable to the car loan.
It is important to note that the interest rates and charges mentioned may be subject to change, and borrowers should verify the current rates and charges with the bank at the time of availing of the loan.
Allahabad Bank considers the borrower's credit score while deciding the interest rate for a car loan.
The minimum CIBIL score required for a new car loan from Allahabad Bank is typically 650 or above.
The minimum loan tenure for a car loan from Allahabad Bank is 12 months, while the maximum tenure can go up to 7 years.
The interest rate offered by the bank may vary based on the borrower's CIBIL score, with customers having a higher score being eligible for lower interest rates.
Generally, customers with a good credit score of 750 and above may get lower interest rates compared to those with lower scores.
Based on the borrower's credit score, it is advisable to check with the bank for the latest interest rates and other terms and conditions applicable to car loans.
The interest rates for Allahabad Bank car loans may vary depending on various factors, including:
Credit Score: The borrower's credit score is a significant factor that affects the interest rate. A higher credit score generally means lower interest rates, while a lower score may attract a higher interest rate.
Loan Amount: The loan amount sanctioned by the bank may also impact the interest rate. Usually, higher loan amounts may attract lower interest rates, while smaller loans may have a higher interest rate.
Loan Tenure: The loan tenure may also affect the interest rate, with longer loan tenures usually attracting a higher interest rate.
Type of Car: The make and model of the car may also play a role in determining the interest rate. Some banks may offer lower interest rates for specific car models, while others may charge a higher interest rate.
Income and Employment: The borrower's income and employment status may also impact the interest rate. Generally, borrowers with a stable income source and employment status may be eligible for lower interest rates.
The eligibility criteria for Allahabad Bank car loans are as follows:
Age: The minimum age of the applicant should be 21 years, and the maximum age limit is usually 65 years.
Income: The applicant should have a stable source of income, with a minimum net monthly income of Rs. 25,000. The income requirement may vary based on the loan amount and other factors.
Employment: The applicant should be employed or self-employed, with a stable employment/business history of at least 2 years.
Credit Score: The applicant should have a good credit score, typically a minimum of 650 or above.
KYC Documents: The applicant should have valid KYC documents, including a PAN card, an Aadhaar card, and proof of address.
Car Ownership: The car should be registered in the name of the borrower and should not be older than 10 years at the end of the loan tenure.
The eligibility criteria may vary based on the loan amount, tenure, and other factors, and it is advisable to check with the bank for the latest eligibility requirements before applying for a car loan.
The process for applying for an Allahabad Bank car loan is as follows:
Visit the nearest Allahabad Bank branch or the bank's official website to apply for a car loan.
Fill in the application form with all the required details, such as personal and contact information, income, employment details, car details, loan amount, and tenure.
Submit the necessary documents, such as KYC documents, income proof, employment proof, car-related documents, and others, as per the bank's requirements.
The bank will then verify the application and documents and assess the borrower's creditworthiness before sanctioning the loan.
Once the loan is approved, the borrower must sign the loan agreement and complete other formalities, such as providing a post-dated cheque, ECS mandate, and other documents per the bank's requirements.
After the formalities are completed, the loan amount will be disbursed to the car dealer or seller as per the agreed terms.
The process and requirements may vary based on the loan amount, tenure, and other factors, and it is advisable to check with the bank for the latest application and documentation requirements before applying for a car loan.
Here are some tips for negotiating the best car loan interest rates with Allahabad Bank:
Compare Rates: Before approaching the bank, compare car loan interest rates offered by various lenders to get an idea of the prevailing rates in the market.
Good Credit Score: Having a good credit score can help you negotiate a lower interest rate. Maintain a good credit score by paying your bills on time, reducing your debt, and keeping a low credit utilisation ratio.
Negotiate with the Bank: Speak with the bank officials and negotiate for a lower interest rate. Highlight your positive credit history, stable employment, and income to support your case.
Use Your Existing Relationship: If you have an existing relationship with the bank, such as holding a savings account or fixed deposit, mention it to the bank officials. This may give you some leverage to negotiate a better deal.
The interest rates for Allahabad Bank car loans start from 8.75% p.a. and may vary based on the loan amount, tenure, and borrowers credit profile.
The maximum loan amount for a car loan from Allahabad Bank is up to 2 crores for a new car.
The minimum CIBIL score required for a car loan from Allahabad Bank is usually 650 or above, but it may vary based on the banks policies and the borrowers profile.
Yes, Allahabad Bank charges a processing fee of up to 0.40% of the loan amount and other charges such as documentation charges, stamp duty, and other applicable fees.
Yes, Allahabad Bank allows the prepayment of car loans without any charges.
Yes, self-employed individuals and professionals are also eligible for Allahabad Bank car loans, subject to meeting the banks eligibility criteria.
The maximum loan tenure for Allahabad Bank car loans is up to 7 years.
Yes, borrowers can apply for an Allahabad Bank car loan online through the banks official website or other online loan aggregators.