Target Group:

• Employees of those reputed public sector / private institutions / organizations, whose salary are disbursed through our branches

• Institutions / Organizations whose salaries are not disbursed through Allahabad Bank branches, but they are ready to enter into tie-up for remitting the monthly installments from the applicant’s salary on monthly basis.
   
• However, in case of transferable job a specific undertaking is required to be submitted by DDO’s that in case of transfer of employee DDO’s will continue to remit installment / arrange to remit even after the transfer of concerned employee.

Eligibility

• The applicant should be a permanent employee of the Institution / Organisation.

• The minimum monthly net salary of the applicant will be Rs.4,000/-

• The applicant must have at least 45 days' leave balance to his credit.

• Total deductions should not be below 50% of monthly gross salary.

Age:

Minimum 21 years.

The loan should be repaid at least three months before retirement from service.

Purpose

• 50% of the eligible loan amount may be availed for purchasing any consumer durable item/ two wheeler/ any other tangible items.

• Upto 50% of the eligible loan amount may be availed from meeting domestic, social, religious or any other exigency expenses.

Quantum of Loan

24 month's net salary or maximum Rs.7,50,000/- whichever is less. Minimum loan amount is Rs.40,000/-

Margin

10%

Rate of Interest

PLR+1.00% with monthly rests. (w.e.f 10.02.2008)

0.50% rebate in interest rate is allowed if liquid collateral security (FDR / NSC / LIP / KVP) or Equitable Mortgage of Land / Building for the amount equal to the loan amount is offered

Processing Fees

1.00% of loan amount, minimum Rs.500/-.

Documentation Fee & other Charges:

please see service charges

Moratorium:

One month.

Repayment:

Maximum 60 Equated Monthly Instalments.

The loan must be repaid before three months of loanee's retirement from service.

Prepayment Fees:

2.00% of the Outstanding Balance if prepaid within 1 year, after that 1.00% only in case of takeover.

Security:

• Hypothecation of articles being financed and / or other items of existing article owned by the proponent.
    
• Guarantee of Spouse or one Co-employee.
    
• If the DDO does not furnish Undertaking to route the terminal dues of the borrower, guarantee of spouse and one co-employee OR guarantee form two co-employees is required.

Additional Condition:

• An advance Repayment of 3 installments should be taken and the demand collection statistics should be drawn accordingly by the branches showing advance payment of 3 installments at all times. As such in case of occasion of appropriating advance payment in current demand, the same should be recouped in future to create a buffer of 3-instalment as soon as possible.

• Post Dated Cheques are also required.

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