||Finance against assignment of future rentals to owners of residential buildings / commercial property to meet business needs and/or other genuine personal needs of the owners (lessors) but shall not be for any speculative purpose whatsoever. |
||Owners of residential buildings and commercial properties situated in Metro and Urban areas, which are to be rented or already rented to PSU’s / MNCs / Banks / large & medium size Corporates with External credit rating (ECR) of not below BBB (Investment grade). |
||Lowest of : |
i).60% of value of the property mortgaged (as per latest valuation report of the Bank’s approved valuer) OR
ii).Maximum permissible under the scheme OR
iii).60% of (total rent receivable for the residual current lease period or loan period, whichever is lower minus total of advance deposit, estimated amount of property tax, service tax, TDS and other statutory dues for the period)
Min. Rs.1 lacs.
Max. Rs.1 crore for non-corporates and Rs.5 crores for corporates.
||EMI shall be for the same frequency at which rent is received & installment shall be front ended i.e. shall be recovered at beginning of the period. |
|Rate of interest
||14.75% i.e 4.50% above Base Rate upto Rs. 5.00 crores |
15.00% i.e. 4.75% above Base Rate above Rs. 5.00 crores
||Primary Security: Assignment of rent receivables. Power of attorney with the lessee to be obtained. In case the applicant has borrowing arrangements with other banks and current assets are already charged, an exclusive first charge on the rent receivable to be obtained in our favour. |
Collateral Security: Equitable Mortgage on building against the rentals of which the loan would be sanctioned OR any other acceptable property of similar value. The realizable value of property to be mortgaged should be at least 120% of the loan amount. AND in case of partnership firm/company, personal guarantee of partners/ directors to be obtained.
||1% of the loan amount prepaid |
||2.02% of loan amount. Maximum Rs. 1,01,865/-|