Allahabad Bank Car Loan

Allahabad Bank Car Loan Key Features – Oct 14 2024

About Allahabad Bank Car Loan

Allahabad Bank was a nationalized bank with its headquarters in Kolkata, India. Until its merger with the Indian Bank, it was the oldest joint stock bank in India.

Allahabad Bank provides attractive car loan interest rates to the consumer for buying their dream car whether new or secondhand. It is an easily available loan that can be procured by anyone even by ones who have a slightly low credit/CIBIL score.

Advantages of Allahabad Bank Car Loan

Allahabad Bank Car Loan Eligibility

Allahabad Bank Car Loan Interest Rate, Fees and Charges

How to Increase Your Eligibility for Allahabad Bank Car Loan

• Opt for a shorter tenure – When you choose a shorter repayment tenure, the EMI that you will be paying each month will be higher. This is an indication of your higher repayment capacity which will lead to banks feeling confident to lend to you. So, if you wish to boost your eligibility for a car loan, opt for a shorter repayment tenure.
• Keep your credit score in check – If you wish to increase your eligibility for an Allahabad Bank car loan, make sure that you maintain a credit score of over 750. You can use the Free Credit Score tool to check and maintain a healthy credit score. Checking your credit score regularly can let you take corrective measures to improve it if your score is low or give you the confidence to approach the bank is it is high.
• Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and spends. Before banks lend to you, they will check how much percentage of your earnings goes into paying your debts and a low debt-to-income ratio will be an indication of your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
• Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for an Allahabad Bank car loan. A lower loan amount means that the loan will be repaid sooner and hence, the chances of you being eligible for a loan is higher.

Factors Affecting Allahabad Bank Car Loan Eligibility

The eligibility criteria for car loan for Allahabad Bank will depend on the below-given factors:

• Income – If your income is on the higher side, there are good chances of your eligibility for an Allahabad Bank car loan being higher. This is because a higher income indicates higher repayment capacity. To be eligible for a Yes Bank car loan, your yearly income should be at least Rs.3 lakh.
• Loan amount – Your eligibility for a car loan from Yes will be higher if you apply for a lower loan amount simply because if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to lend to you.
• Repayment tenure – Choosing a longer repayment tenure can lower your eligibility for a car loan as it might give an impression to the bank that your ability to pay the loan is lower. This is because longer repayment tenure results in lower EMIs and the lender may tend to think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
• Credit score – This is an important factor that most banks, including Allahabad Bank, consider when determining your eligibility for a car loan. A credit score of 750 and above is considered a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and hence, your eligibility will be higher.
• Relationship with the bank – As stated earlier, Allahabad Bank offers Instant Car Loan to their existing customers through the ZipDrive feature. This feature allows Yes Bank customers to can avail of loans instantly, at their convenience, with negligible documentation. This indicates that your relationship with the bank is an important factor while determining your eligibility.

Allahabad Bank Car Loan Documents Required

Salaried Individual

Self-Employed Individuals

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

2. Private Limited/Limited Companies

How to Apply for Allahabad Bank Car Loan?

1. Visit Dialabank and fill a form.
2. Wait for a call from our Relationship Manager who will guide you throughout the process.
3. You can compare different offers from banks and choose the one which suits your needs.
4. Thus, easily apply for a Car Loan through Dialabank and enjoy the best offers.

Tips to Decide the Right Amount of EMI

• Ascertain the amount you need to borrow: It is important that before approaching a bank for a loan, you inform them about the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Furthermore, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans can result in huge interest outgo.
• Review your current obligations: Before taking a loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you to estimate the amount of EMI which you will be able to pay comfortably after taking into account other obligations. Once you arrive at the EMI, you can also decide on the right loan tenure.
• Calculate your Axis Bank car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. Allahabad Bank provides an LTV up to 100 % of the ex-showroom price and expects the borrower to fund the remaining value of the property by own money
• Multiplier-based loan amount eligibility – Allahabad Bank also calculates your eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating loan eligibility used by banks. Usually, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your company that is based on its reputation, stability, size, and growth in turnover.
• FOIR based loan amount eligibility – Allahabad Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to find out the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. Allahabad Bank’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

The Car Loan EMI – EMI Changes in Case of Prepayment

In case you prepay your loan for the vehicle, a small penalty is charged. Prepayment in Allahabad Bank is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your loan for the vehicle reduces. Allahabad Bank provides you with two options:

• Reduce your loan tenure and keep EMI on your car loan unchanged: This alternative allows you to shut your loan prior and save the interest outgo associated with the remaining term. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
• Reduce the amount of EMI and keep your loan tenure the same: This option provides you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would require to reduce their monthly EMI obligations.

How to Calculate EMI on Allahabad Bank Car Loan

Before an applicant avail of a car loan from Allahabad Bank, you may require to understand how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly instalments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses finely.

One can easily calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E denotes the EMI, P the principal amount, in the interest rate, and n the number of years or tenure of the loan.

One can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

Allahabad Bank Car Loan EMI Calculator

The applicant has the option to know the EMI’s before availing of a Car Loan. Thus, you can easily check through the link below:

Car Loan EMI Calculator

Allahabad Bank Car Loan Types

Allahabad Bank offers different types of car loans to its customers. You have the option of choosing the offer which suits your need the best. It offers the following types of Car Loans:

1. New Car Loan –  Those who wish to buy a new car, this is the scheme for you. You can take Allahabad Bank Car Loan for a minimum of Rs. 1 lakh and a minimum tenure of 7 years.
2. Used Car Loan – If you wish to buy a used car then you can choose this scheme which offers a minimum loan of Rs. 1 lakh and a minimum tenure of 5 years.
3. Loan Against Car – You can opt for this scheme if you are in need of urgent funds where you can keep your cars as collateral with the bank where you can get Rs. 10 lakh or up to 50% of your car’s value.

Compare Allahabad Bank Car Loan with other Banks in India

Allahabad Bank Car Loan Pre Calculated EMI

Allahabad Bank Car Loan for Top Selling Cars

Other Available Products from Allahabad Bank

FAQs for Allahabad Bank Car Loan

✅ What is the Allahabad Bank Car loan?

Car loan refers to the various financial products which allow someone to acquire a car, including car finances and leases.

✅ How can I get a car loan from Allahabad Bank?

You can easily avail of a car loan from Allahabad Bank if you meet the eligibility criteria which is: permanent employees of reputed organizations, professionals, self-employed persons, entrepreneurs, and agriculturists. They should have a minimum age of 21 and a maximum age of 65.

✅ How does the Allahabad Bank Car loan work?

The amount that you are qualified for election to receive depends on your income. For most new cars-  can sanction up to 25 times the total monthly income or 85% of the price of the car. This includes road tax, insurance, etc. For used cars-  can sanction up to 60% of the cost of the vehicle.

✅ How to Check Car Loan status in Allahabad Bank?

You can check your car loan status in Allahabad Bank by visiting the nearest branch or by checking the bank’s website.

✅ What is the Canara Bank Car Loan Customer Care Number?

The customer care number of Canara Bank for car loan queries is  9878981166.

✅ What is the loan tenure of the Allahabad Bank Car loan?

It offers a loan tenure of 6 years.

✅ Can I get a 100% Car loan from Allahabad Bank? 

✅ Can you prepay your Allahabad Bank Car Loan?

You can prepay/foreclose your Allahabad Bank Car Loan at a charge of 5% of the outstanding principal amount.

✅ Does Allahabad Bank Car Loan charge any Processing Fees?

Allahabad Bank charges a processing fee of 0.40% of the loan amount.

✅ Can I get an Allahabad Bank Car Loan if I have a low Credit score? 

Allahabad Bank Car Loan requires you to have a good credit score of 700 or above. However, in some cases, the loan application may be approved in case the credit score is below 700.

✅ What can you keep as Security with Allahabad Bank to get a Car Loan?

You do not need any other security other than the car itself to get Allahabad Bank Car Loan.

✅ What is the Allahabad Bank Car Loan closure procedure?

• Just go to the bank with the documents required for a car loan.
• Write a letter for pre-closure of the Allahabad Bank Car Loan account.
• Pay the pre-closure charges as per Allahabad Bank Car Loan.

✅ What are the Allahabad Bank Car Loan preclosure charges?

Allahabad Bank Car Loan Car Loan preclosure charges are zero.

✅ What is the Allahabad Bank Car Loan maximum tenure?

The Allahabad Bank Car Loan maximum tenure is 7 years.

✅ What is the Allahabad Bank Car Loan minimum tenure?

The Allahabad Bank Car Loan minimum tenure is 1 year.