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.