Loan on Rental Yield

Eligible category of borrowers

  • Members who are Individuals/ Proprietor/Companies/ Partnership firms with high means

Amount

  • Maximum Rs 50.00 lakhs

Limit

  • 20-30 times of rental amount after deduction of service tax and TDS or 60% of the value of security whichever is lower.

Security

  • Mortgage of the property where the rent is receivable or any other unencumbered property

Tenure

  • Minimum 3 years -Maximum 10 years depending on the lease period.

Rate of Interest

  • Upto Rs 25.00 Lacs -13.50%
  • Above Rs 25.00 lacs Upto Rs 50.00 Lacs-14.00%

Repayment

  • Equated Monthly Installment(EMI) only

Sureties

  • Two sureties who are necessarily be members of the Bank.

Other charges

  • Three months rent to be credited to the account before the submission of proposal
  • After sanction of loan 6 months rental amount to be kept as security deposit till the tenure of the loan with letter of lien.
  • Rent to be routed through escrow account
  • Rent receivable in cash can not be considered.
  • All the other terms and conditions applicable to other loans remains the same.
LOAN ON RENTAL YIELD – LRY
AMOUNT IN LAKHS ROI TENURE
UP TO 25.00 13.50 % Minimum 3 years maximum 10 years depending on the lease period
>25.00 TO 50.00 14.00 % Minimum 3 years maximum 10 years depending on the lease period
>50.00 TO 70.00 15.00 % Minimum 3 years maximum 10 years depending on the lease period