Allahabad Bank Business Loan

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Business Loan

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    The reliable way of funding your business requirements is by taking a business loan from a reputed bank. One amongst them is Allahabad Bank. The bank provides the loan to micro and small enterprises to meet the rising capital needs in the business. The loan is sanctioned for the maximum amount of Rs. 5 crores. These business loans are pledged against security The repayment process is simple. Moreover, the interest is charged at reasonable rates.

    Allahabad Bank Business Loan Details

    ParticularsDetails
    Interest Rates9.55% p.a – 15.55% p.a
    Minimum Loan AmountRs. 50,000
    Maximum Loan AmountUp to Rs. 5 crores
    Tenure3 years
    Processing FeeMinimum - Rs. 2,047
    Maximum – Rs.23,029
    Repayment OptionThrough EMIs
    Prepayment Charges2.28% of the outstanding amount
    Collateral/SecurityRequired
    Documentation ChargesNot applicable
    Mortgage ChargesNot applicable

    Allahabad Bank Business Loan Eligibility Criteria:

    • All Traders –  individuals, firms, companies, co-operative societies dealing in any lawful trading activity, which is neither restricted nor prohibited by RBI/Govt
    • Business concerns/agencies providing services such as xeroxing, dry cleaning, licenses to deal in petroleum products/LPG, auto service centres, ISD/STD PCO Booths etc.
    • Traders and business concerns having valid registration proof and license
    • Applicant has to be in the line of business for at least one complete financial year. The unit should be engaged in profitable business.
    Must Read  Dena Bank Business Loan

    How To Apply:

    The eligible candidates can apply for a business loan. The application form along with the required documents has to be submitted at the nearest branch office. All branches of Allahabad Bank deliver the facility of business loan.

    Allahabad Bank Business Loan EMI Calculator

    EMI calculator is the programme designed to assist the borrowers, who find calculation a tiring task. The EMI calculation is simplified and you get to know the amount in a fraction of time. You can even know the total amount payable during the loan tenure. Also, you get the amount of interest charged on the loan amount.

    For Example – If I get the loan of Rs. 5,00,00,000 at the proposed rate of interest for the maximum period of 3 years than my monthly installment will vary from Rs.

    Table Showing EMI, Amount of Interest and Total Amount

    Loan Amount (In Rs.)Interest Rate (p.a)Tenure (In years)EMI (In Rs.)Total Interest Amount (In Rs.)Total Amount (Principal + Interest) (In Rs.)
    5,00,00,0009.55% – 15.55%143,85,337 - 45,25,902 
    26,24,040 - 43,10,827
    5,26,24,040 - 5,43,10,827
    5,00,00,0009.55% – 15.55%222,96,875- 24,37,41851,25,007 - 84,98,0435,51,25,007 - 5,84,98,043
    5,00,00,0009.55% – 15.55%316,02,816 - 17,46,76477,01,390 - 1,28,83,4885,77,01,390 - 6,28,83,488

    Amortization Table

    YearPrincipal Payment (In Rs.)Interest Outgo (In Rs.)Balance Amount (In Rs.)
    11,51,08,758 -1,41,67,7604,125,034 - 6,793,40834,891,242 - 35,832,240
    216,616,508 - 16,534,8462,617,284 - 4,426,32218,274,734 - 19,297,394
    318,287,389 - 19,319,739959,071 - 1,663,753

    • Security
      • Primary:
      • Exclusive hypothecation charge on stocks, book debts & other current assets and exclusive hypothecation charge on all fixed assets such as equipments, business tools, computers, furniture & fixtures etc. of the unit. In case of loan sanctioned for acquiring/ construction of premises on ownership basis, the property should be mortgaged in favour of Bank as per Bank’s manual of mortgages
    • Collateral:
      • For existing units : Collateral security in the shape of NSC’s, LIP (Surrender Value) or any other tangible security with realisable value at least equivalent to 75% of the total exposure
      • For New units : Collateral security in the shape of NSC’s, LIP (Surrender Value) or any other tangible security with realisable value at least equivalent to 100 % of the total exposure
    • Guarantee
      • In case of Partnership firms, personal guarantee of all the partners
      • For Private Limited companies, personal guarantee from all the promoter directors required
      • For Public Limited companies, personal guarantee of at least one of the promoter directors and/or directors having major financial stake in the business required
    Must Read  Nainital Bank Business Loan

    Allahabad Bank Business Loan Application Form

    To avail the business loan from the Allahabad Bank you need to fill in the application form. The application form comprises of various sections. Make sure all sections are duly filled and the information provided is correct. Incomplete entries may affect the transaction.

    Documentation

    • PAN Card – For Individual / Partnership Firm / Company
    • Identity Proof – Any one (e.g. Voter ID / Driving License / Passport / Aadhar Card)
    • Address Proof – Any one (e.g. Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
    • Ownership proof of either residence or office either in the name of applicant or jointly with family members
    • Business Continuity Proof – Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
    • Letter certifying end use of the business loan funds on Business Letterhead
    • Passport Size Photographs of all applicants and co-applicants

    Factors Affecting Business Loan Eligibility

    • Loan Repayment track
    • Credit Performance / Credit Bureau Update
    • Debt servicing ability of the customer
    • Business Vintage
    • Financial Ratios
    • Existing relationship

    Allahabad Bank Business Loan Interest Rate

    The rate of interest charged by bank varies according to the nature of business and amount of loan. The rate of interest is computed by adding additional rate to Marginal Cost Based Lending Rate (MCLR).

    Rate of Interest Table

    Allahabad Bank Business Loan Status

    Now you can trace the loan procedure and check the application status without visiting the bank branch. Check the status online by entering the application number on the registered website.

    Allahabad Bank Business Loan Customer Care

    For any grievance or query contact the customer care executive. The customer care is operational at all the bank branches and regional centres. The executives will help you in the best possible way.