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.

To apply for Loan against future rent receivables, please download the below listed form and submit it to your nearest branch

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