Purpose
Business / personal purposes of lessor (owner of building).
Loan Amount
Up to Rs 800 Lakhs.
Eligibility
Any permissible legal entity to whom rent is due from commercial property. Loan shall be considered only after a receipt of at least two months rent. Lessee shall be corporate or firm with good means and earning capacity.
Quantum of finance
70% of the discounted (at loan interest rate) value of rent after providing for Income tax, service tax, municipal tax, advance rent etc.
Margin
30% on the discounted value.
Period
Maximum 84 months
Remaining lease period shall be at least 2 months more than loan period.
Rates & Charges
Please refer rates & charges page
Repayment
Direct remittance of rent receivable, net of Tax Deducted at Source (TDS).
Security
Primary
Charge on the stream of rent receivable
If any asset is created out of the loan proceeds – direct payment to be made and the asset to be hypothecated
Collateral
Property from which rent is due valued at least 150 % of the loan amount
Other conditions
There should be a genuine bona fide registered lease agreement. All premises of which the rent is being discounted shall be given as collateral security irrespective of the value of the property. Net worth of the borrower shall be at least double the loan amount..