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 Loans 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 Loans:
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 Loans 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 Loans: Salaried Individuals:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
