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).
- Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
- Bank Statements(latest 6 months bank statement /passbook)
- Latest salary slip or current dated salary certificate with
latest Form 16
- Proof of property being rented to an organisation
Self Employed Professionals and Businessmen:
- Proof of Identity (Passport Copy/ Voters ID card/ Driving
License).
- Address Proof (Ration card Tel/electricity Bill/ Passport )
- Bank Statements(latest 6 months bank statement /passbook)
- Latest ITR along with computation of income, B/S & P&L
a/c for the last 2 yrs. certified by a CA
- Qualification proof of the highest professional degree
- Proof of continuation (Trade license /Establishment /Sales Tax
certificate)
- Other Mandatory Documents(Sole Proprietorship. Declaration. Or
Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA &
Board resolution.)
- Proof of property being rented to an organisation.
List of Some of Banks Offering Cash Rental Loans:
