Financing property owners against future lease rentals for business/ personal needs or any lawful activity. Not for speculative purpose.
Property owners having their property situated in Metro/ Urban Area / Semi-Urban areas, who have let out /leased their property under registered lease deed /sub- lease deed / rent deed to Govt./ Semi Govt./ Public Sector Undertakings/Reputed Corporations / Banks/ Financial Institutions/ Insurance Cos./ Multinational Companies etc.
Nature of Facility :
Term Loan or Overdraft reducing balance
Quantum of finance :
Term Loan or Overdraft to the extent of
- 75% of the Future Lease Rental Receivables where un-expired lease period is three years and less, maximum Rs.5.00 crore.
- 65%of the Future Lease Rental Receivables where un-expired lease period is more than three years but not exceeding 6 years, maximum Rs.5.00 crore.
- 55% of the Future Lease Rental Receivables where un-expired lease period is more than six years but not exceeding 8 years, maximum Rs.5.00 crore.
- 50% of the Future Lease Rental Receivables where un-expired lease period is more than 8 years but not exceeding 10 years, maximum Rs.5.00 crore.
Future Lease Rent Receivables = Gross rent Receivables less (advance rent received + property tax + income tax + other statutory dues of the lessor)
- Assignment of future rent receivables in favor of Bank.
- Equitable Mortgage of any property of the borrower value of which should be to the extent of
- 100% of proposed loan in case the loan is repayable within 36 months.
- 133% of proposed loan in case the loan repayable beyond 36 months.
- 200% of proposed loan in cases where there is difficulty in entering in to an agreement with the tenants to assign the future rentals.
- Personal Guarantee of joint/ co-owner of the property (if any)
- Personal guarantee of all Directors other than Nominated/Professional Directors (in case of Corporate Borrowers)
Borrower/s to keep the insurance for the full market value of the property to be mortgaged in the name of the borrower/s with bank clause, against risk of damage, loss, destruction by fire and such other risks as may be prescribed by the bank and keep up such insurances live until the amount due under the Term Loan of the bank is paid in full.
- Term Loan is repayable in Maximum 120 months or within the unexpired lease period, whichever is lower.
- Overdraft facility will also be for maximum period of 120 months or the unexpired lease period whichever is lower.
- The entire portion of monthly rent receivables will be credited into loan account every month
Rate of Interest w.e.f 30.05.20
RBLR = REPO + SPREAD+ CREDIT RISK
Cent Rental Term Loan up to 3 years
Low/Medium Risk category
: REPO+ 5.65 % + 0.00 % = 9.65 %
Cent Rental Term loan above 3 years -10 years.
- Low/Medium Risk
category : REPO+ 4.00 % + 6.15 %+0.00 =
Cent Rental OD Reducing facility.
category : REPO+ 4.00 % + 5.90 % = 9.90
( REPO RATE 4.00%)
1 % of the loan amount subject to minimum of Rs.5, 000/- and maximum of Rs.2.00 lakh.
All obligations as lesser under the lease to be fulfilled by the borrower. Borrower shall be responsible for up keeping of the property, payment of all taxes, insurance premium etc.
For further details please contact our nearest branch or call on the toll free no. 1800 22 1911