Loan Against Future Rent Receivables
Get loan against rental income of your property
Purpose
- For meeting the expenses of renovation / alteration / addition to the premises rented and other business / personal needs but not for speculative purposes
Loan Amount
- 55% of rent (in case of Commercial Real Estate Advances), 60% of rent (in case of Non Commercial Real Estate Advances) net of TDS, advance rent, security deposit, due and receivable, for the unexpired period of lease.
- Minimum : Rs.5 Lac
- Maximum: Rs.100 Lac
Rate Of Interest
- The rate of interest as decided by the bank from time to time would be applicable.
Repayment
- Maximum period of 10 years or unexpired period of lease, whichever is less.
Security
- Assignment of future rent receivable up to Rs.5 Lacs only for landlords of premises of bank’s branches / office.
- For others and loan above Rs.5 lacs for landlords of premises of bank’s branches / office
- Third party guarantee of two persons having net worth acceptable to bank.
- Tripartite agreement among the bank, the borrower and the tenant lessee providing for payment of the rent directly to the bank.
- Equitable mortgage of property
Processing Fee
- 1% of loan amount + GST
Share Holding
- 1.50% of the loan amount.
Documents Required
- Photograph , PAN and KYC documents of borrower and guarantor
- Certified copy of lease deed.
- Proof of income for applicant and lessee.
- Copy of IT return.
- Certified copies of title deeds of the properties leased out and mortgaged along with latest tax receipts.
- Copy of approved building plans.
- Tripartite agreement among the bank, the borrower and the tenant/lessee for rent directly to the bank or letter from borrower for collecting rent directly and letter of undertaking from tenant/lessee to pay rent directly to the bank.