Business Loan Rates 20196111 views
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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 ₹5 crores. These business loans are pledged against security The repayment process is simple. Moreover, the interest is charged at reasonable rates.
Table of Contents
- 1 Allahabad Bank Business Loan Details
- 1.1 Allahabad Bank Business Loan Eligibility Criteria:
- 1.2 Allahabad Bank Business Loan EMI Calculator
- 1.3 Allahabad Bank Business Loan Application Form
- 1.4 Factors Affecting Business Loan Eligibility
- 1.5 Allahabad Bank Business Loan Interest Rate
- 1.6 Allahabad Bank Business Loan Status
- 1.7 Allahabad Bank Business Loan Customer Care
Allahabad Bank Business Loan Details
|Minimum Loan Amount||₹50,000|
|Maximum Loan Amount||Up to ₹5 crores|
|Processing Fee||Minimum - ₹2,047|
Maximum – ₹23,029
|Repayment Option||Through EMIs|
|Prepayment Charges||2.28% of the outstanding amount|
|Documentation Charges||Not applicable|
|Mortgage Charges||Not 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.
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
Business Loan 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 ₹50,00,000 at the proposed rate of interest 8.75% per annum for the maximum period of 3 years than my monthly installment would be:
Table Showing EMI, Interest Outgo, and Total Repayment Amount EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
Loan Amount Interest Rate Tenure Monthly Instalment Total Interest Amount Total Amount ₹ 50,00,000 8.75% 1 ₹ 4,36,678 ₹ 2,40,135 ₹ 52,40,135 ₹ 50,00,000 8.75% 2 ₹ 2,27,851 ₹ 4,68,415 ₹ 54,68,415 ₹ 50,00,000 8.75% 3 ₹ 1,58,418 ₹ 7,03,031 ₹ 57,03,031 Year Principal Interest Balance Amount 1 ₹ 15,23,653 ₹ 3,77,357 ₹ 34,76,346 2 ₹ 16,62,452 ₹ 2,38,558 ₹ 18,13,894 3 ₹ 18,15,041 ₹ 87,116 ₹ 0
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
- 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
- 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
- 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
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.
- 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
|Loan limit||Micro Enterprise||Small Enterprise|
|Up to ₹50,000||MCLR||MCLR+0.50%|
|Above ₹50,000 up to ₹2 Lac||MCLR+0.50%||MCLR+1.00%|
|Above ₹2 Lac up to ₹10.00 Lac||MCLR+1.00%||MCLR+1.50%|
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.