Cash Rental Loans

 

Most of the Banks in India have started a new scheme of loans to property owners who have leased/rented their property to insurance company, bank, embassy, MNC's etc. The scheme offers loans against future rents receivable of those owner.


 


The Maximum Amount of Cash Rental Loan Offered:

maximum amount of loans depends on that property rental receivable. And the margin of 19-26 % is taken by bank while providing the loan. Repayment of loan can be done within the period of lease / tenancy. Repayment can be done through EMI or Equated Monthly Installment.

And Interest Charges charged by Banks on Cash Rental Loan:

Interest will be either on floating rate or fixed rate. Interest rates totally depends on the repayment capacity of the consumer. .

Process to approve Cash Rental Loan:

Cash rental loan can be taken in any bank. They charge a processing fee of 1-2 % of the actual loan amount.

Important Documents Required for approval of Cash Rental Loan:


        Salaried Individual:

  • Id Proof (Identity Proof) (Driving License / Passport Copy / Voters ID card).
  • Proof of property being rented to an organization.
  • Latest salary slip or Latest salary certificate with latest Form 16
  • Latest Bank Statements (6 months bank statement / passbook)
  • Address Proof (Ration card Tel/elect. Bill/ / Passport copy)

    Self Employed Businessmen and Professional:

  • Id Proof (Identity Proof) (Driving License / Passport Copy / Voters ID card).
  • Address Proof ( Passport / Ration card Tel / electricity Bill)
  • Latest Income Tax along with computation of income, Balance sheet and P&L A/c for the last 2 yrs. and should be certified by a Chartered Accountant.
  • Proof of Qualification of the highest professional degree.
  • Proof of property being rented to an organization.

  • Latest Bank Statement (6 months bank statement /passbook)
  • And other Important Mandatory Documents (Cert. Copy of MOA, AOA, Sole Proprietorship- Declaration-or Certificate. Copy of Partnership Deed & Board resolution.)
  • Proof  of continuation (Trade license /Establishment /Sales Tax certificate)


    List of Some of Banks Offering Cash Rental Loans:

     

        United Bank Of India- United Cash Rental Loan
        Union Bank Of India - Union Rent Scheme
        UCO Bank - UCO rent
        Andhra Bank - Rentals Loan Schemes
        Bank Of Baroda - Loan Against Future Rent



    *Terms and conditions may vary from bank to bank.