IB Rent Encash
|Eligibility||Residential / commercial building owners (individuals / joint owners/ Trust / Societies /Corporate / Firms or any other entity) who have / who propose to let out their buildings to top notch Corporates / Public Sector Undertakings / State / Central Government offices. (Lease Agreement between the applicant and tenant should be Registered).|
|Purpose||Repairs, renovation of buildings, marriage, education, household festivals, medical or any bankable purpose.|
|Quantum of Loan||Minimum Rs.1.00 lakh Maximum Rs.500 lakhs*
No. of times of rent : Max : 120 Months –For category “A” lessees
84 Months – for category “B “Lessees.
Rent: Rent or rental value pertaining to the residual/unexpired period of lease ( certain period only). In cases where our bank is lessee, the rent for the option period also can be reckoned for calculation of eligible loan amount.
|Category of Lessee and quantum of loan eligibility||“A” category Lessee : If the lessee is our Bank/PSBs/Scheduled B Banks /central /state Govt. undertaking/profit making PSUs/MNCs ( ie. Rated by FITCH or S&P with rating of BBB and above) & Top Notch Corporate ( ie, companies having external rating of BBB and above)
Minimum Rs.1.00 lakh
Maximum: Rs.500.00 lakhs: if the property is situated in Tier I and Tier II Centres (As per Annexure I)
Maximum: Rs.200.00 lakhs: if the property is situated in all other centres (Metro/Urban/Semi-Urban) other than Tier I and Tier II Centres (As per Annexure I)
B .If the lessee does not fall under the above category
Minimum Rs.1.00 lakh
Maximum: Rs.200.00 lakhs: if the property is situated in Tier I and Tier II Centers (As per Annexure I)
Maximum: Rs.100.00 lakhs: if the property is situated in all other centers (Metro/Urban/Semi-Urban) other than Tier I and Tier II Centers (As per Annexure I)
Properties situated in rural areas shall not be taken as security for this loan product. This is exempted only in cases where the lessee is our bank / other PSBs.
|Processing fee||Click here|
|Prepayment charges||* Individual Borrowers
Term Loan – Pre-payment charges – NIL (Term Loan)
Overdraft – Pre-payment charges – 2.00% + applicable GST of the balance outstanding or DL, whichever is higher.
Non-Individual Borrowers (irrespective whether Term Loan or OD)
Pre-payment charges – 2.00% + applicable GST of the balance outstanding or DL, whichever is higher.
|Security||1. Assignment of rent receivables.
2. Equitable Mortgage of Freehold / Leasehold**Property. Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located.
3. CERSAI Registration (at Applicant’s cost) to be done** conditions apply
|Documents to be submitted for processing the application||1. Completed Application Form with passport size photograph.
2. Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License.
3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID.
4. Proof of business address in respect of businessmen / industrialists.
5. Proof of Employment.
6. Salary Certificate.
7. Proof of other income like rent, interest on investment, if any.
8. Balance Sheet for the past three financial years in the case of Professionals, Businessmen & Self employed.
9. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years.
10. Sale Deed.
11. Approved Building Plan.
12. Title Deed Documents for 30 years.
13. Proof of title in the Revenue Records.
14. Copy of Registered Lease Agreement.(Legal Opinion from Advocate & Valuation of property from Engineer will be arranged by Bank at applicant’s cost)
|Insurance||Property (offered as security) to be insured at borrower’s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies|
|Rate of Interest||Click here|
( Last modified on May 18, 2022 at 02:05:13 AM )