Banks have come out with an innovative scheme of providing loans to property owners who have rented/ leased their property to banks, insurance companies, PSU, multinationals, embassies etc. The scheme provides loans against future rent receivable of such owners.

Maximum Amount of Cash Rental Loan Offered:

The maximum amount of loan depends on the rental receivable. A margin of 20-25 % is taken by banks while giving the loan. Repayment of loan can be done within the period of tenancy/lease. Repayment is done through Equated Monthly Installments or EMI.

Interest Charged by Banks on Cash Rental Loan:

Interest can be taken either on fixed or floating rate. Banks generally charge according to prime lending rate. Interest rate also depends on the repayment capacity of the customer. Existing customers of the bank are sometimes given a discounted interest rate.

Process of Cash Rental Loan Approval:

Customers can apply for loan either in person by visiting the bank's premises or by filing online forms. A processing fee of 1-2 % of the actual loan amount is charged by banks.

Documents Required for approval of Cash Rental Loan:

Salaried Individuals:

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
3. Bank Statements(latest 6 months bank statement /passbook)
4. Latest salary slip or current dated salary certificate with latest Form 16
5. Proof of property being rented to an organisation

Self Employed Professionals and Businessmen:

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card Tel/electricity Bill/ Passport )
3. Bank Statements(latest 6 months bank statement /passbook)
4. Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
5. Qualification proof of the highest professional degree
6. Proof of continuation (Trade license /Establishment /Sales Tax certificate)
7. Other Mandatory Documents(Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)
8. Proof of property being rented to an organisation.

List of Leading Banks offering Cash Rental Loans:

* Terms and conditions may vary from bank to bank.

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