Allahabad UP Gramin Bank Personal Loan | Purpose. Benefits, Features, Eligibility, Mode, Documents Required and Myths

February 21, 2024 / Loan / By

Allahabad UP Gramin Bank Personal Loan: The core of India’s financial sector provides a meeting ground for all kinds of investors and savers. Our banking system consists of the Central bank (RBI), commercial banks, cooperative banks, and developmental banks.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

Allahanad UP Gramin Bank

What Are Gramin Banks?

Grameen Bank is a microfinance organization and community development bank. It provides small loans known as microcredit to the impoverished without requiring any collateral.

The Grameen banks in India are to provide basic banking facilities and financial services in rural areas. Grameen banks are commercial banks owned by the government of India operating at a regional level throughout various states of India.

Grameen banks also give a way to break from the invisible prison of poverty; it’s not only about providing money to the people. It is about noticing and recognizing the potential in people and giving them the courage to stand for themselves and earn a livelihood.

Allahabad UP Gramin Bank

Allahabad UP-Gramin bank is a bank in India established in 2010. The bank has almost 1308 branches across the state. The bank provides all financial services to its customers like saving deposits, fixed deposits, recurring deposits, loans, personal loans, net banking, RTGS, NEFT, IMPS E-wallet, RTGS, Car loan, bank loan, etc. The bank supports all the schemes like Jan Dhan Yojna, Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, and many more.

Purpose Of Providing Personal Loan By Allahabad UP Gramin Bank

As the bank provides loans without keeping any collateral or property, it makes it easier for the customer to take loans in all sought of emergencies like payment of credit card bill, repayment of an existing loan, marriage in the family, household shifting, or any other business emergency trip.

Benefits and Features of Allahabad UP Gramin Bank Personal Loan

  1. The process of personal loan application is fast and easy.
  2. The loan approval process is quick.
  3. No security is required for availing of a personal loan.
  4. The maximum loan amount can be approved.
  5. There are many discounts and special schemes for employees of large companies.
  6. There are attractive and competitive interest rates.
  7. There are various loan repayment options.

Eligibility To Apply for Allahabad UP Gramin Bank Personal Loan

  1. Age: 21-58 years
  2. Salaried /Self Employed with regular income.
  3. Number of years in present job/business/profession: up to 3 years
  4. Permanent employees of State /Central Government, Public sector undertakings, private sector companies, and reputed establishments.

Mode Of Application for Applying for A Personal Loan

  1. Online mode – Personal loans can be easily applied from the website of bank by filling up all the necessary information and uploading all documents. The eligibility should be checked before applying for a loan.
  2. Offline Mode – The loan can be applied by visiting any bank branch, along with all the required documents. After filling up the form available at the branch, the approval process can be started.

Documents Required for Personal Loan Approval At Allahabad UP Gramin Bank

  1. Proof of identity: Passport, Voter ID, Driving License, PAN card, Aadhar Card Government department ID card.
  2. Duly filled up the loan application form with correct information.
  3. Bank statement or bank passbook having entries of last six months
  4. Proof of income – Income Tax Returns of 2 previous financial years.
  5. Proof of income – Latest salary slip showing all deductions or form 16 with recent salary certificate ( for salaried individuals)
  6. Proof of Address – This includes the latest electricity bill /telephone bill / mobile bill, existing house lease agreement, latest credit card statement, etc
  7. Photographs

Security Deposit for Applying for a Personal Loan

When it comes to security, cooperative banks are one of the banks that require no security deposit for issuing any personal loan.

Loan Repayment Methods Available at Allahabad Gramin Bank

Any one of the following methods can be used to repay the loan-

  1. Mobile banking is provided by the bank.
  2. Through an internet banking solution.
  3. Standing instruction registration at the respective bank
  4. Automated Payment through ECS (Electronic Clearing Service)

Loan Repayment Options

The loan repayment generally starts from 12 EMI and can be done up to 60 EMI’S. The repayment period also differs from one person to another depending upon their credit score.

Myths Regarding Personal Loans

There Is A Need for Regular Income for Personal Loans

There are chances where you can get your loan approved even if you don’t have a regular income. Loan approval can be easily given to you if you are a joint holder with a regular income source.

Prepayment Of A Personal Loan Attracts A Penalty

It depends from one lender to another to charge a penalty on prepayment, and it has been generally observed that many lenders do not charge any penalty on prepayment.

Longer Loan Repayment Tenure Is Better

It is generally believed that longer loan repayment tenure is better, but it’s not true. Longer repayment tenure brings higher interest. This will make to pay you interest for a more extended period.

Hike In Interest Rate Increase Emi Of Personal Loan

When there is a hike in interest rate, loans generally obtained at fixed rate are not affected, but the loans obtained at the floating rate, then there is an increase in interest rates.

Interest Rates Are Not Negotiable

There is a general misconception that we cannot negotiate interest rates. Still, people with good income and good credit scores can negotiate interest rates with the lenders and get comparatively lower interest rate loans.

A Personal Loan Can Be Easily Approved By A Good Credit Score

Only a good credit score does not confirm a personal loan. There are many more factors, such as regularity of income, employer, employment type, etc., which the lender considers before loan approval.

Personal Loans Cannot Be Approved With A Poor Credit Score

If the credit score is poor, you can get a personal loan but is generally approved on higher interest rates. The loan also depends on other factors such as the borrower, age of the applicant, income of the applicant, etc.

If significant banks do not approve your loan, you may approve a loan from cooperative banks and NBFCs.

Various Reasons Why Personal Loan Is Rejected

  • Higher Loan Enquiries: The credit report asked by the credit bureau is called inquiry. The person should not make many queries even if it is free of cost. Too many queries lead to an effect on your credit score. The credit bureau considers such inquiries as hard inquiries and mentions in your credit report, which can lead to difficulty in your loan approval.
  • The Size Of Existing Debt: If the loan is already taken and the loan to net income ratio is above 40%, lenders can reject your loan application.
  • Poor Credit Score: A credit score defines the worth of any person. A credit score helps in determining the risk of default. Due to poor credit scores, personal loans can get rejected. Usually, a person with a credit score of less than 750 may face personal loan rejection. A credit score is generally seen by the lender while approving any loan.

Allahabad UP Gramin Bank Contact Details

  • Bank Official Website – Www.Allahabadgraminbank.In
  • Contact Numbers – 05192-220109, 221096, Fax-05192-221463
  • Email Id – Ho@Aupgb.In
  • Total Branches – 1308
  • Headquarter – Banda
  • Bank Address – DM Colony, Civil Lines, Banda -210001(UP)

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