Do you have a self-owned residential or commercial property? Are you in need of funds to improve the condition of your property or are facing an emergency? A loan against rent receivable will help you access liquid funds when you need it the most.
What is a Loan Against Rent Receivable?
This is a loan that you can take against the rental income of your property.
Criteria to avail this loan
To be eligible for this loan, you need to meet certain terms and conditions:
• You must be the owner of the property
• Your property must be rented out as per terms and conditions charted out in a bona fide Rental Agreement.
• You and your tenant must be credit worthy and capable of giving credit.
• The property should have been built according to a government-approved plan.
Once the lender is assured that you satisfy the above criteria, your loan application will be processed. Generally, the bank enters into a three-way agreement with you and your tenant, prior to approving the loan. As per this agreement, the tenant must pay the rent to the bank directly. You and your tenant will be required to give an undertaking to this effect to the bank.
The loan amount and tenure will be assessed in such a way that it is repaid within the residual lease period between you and the tenant, or a maximum of 120 months.
Purpose of the loan
These kinds of loans can be used instead of personal loans. Since your property is used by the bank as security against which you are given the loan, the interest rates tend to be lower than the rates for other types of loans, helping you save money in the long run.
Whatever your requirement may be – be it a medical emergency, wedding expenses, home remodeling, or even for debt consolidation, a loan against rent receivables could help you.
Repayment method
• Post Dated Cheques for the tenure given.
• By way of ECS
• SI from the borrower's a/c with the Bank
Loan against Rent Receivables is a loan product designed by lenders especially for addressing the financial requirement of applicants having a self-owned property given on rent. This product enables them to get liquidity against expected future rentals of the property.
Loan against Rent Receivables -- How to Apply?
If you are looking for Loan against Rent Receivables and are unsure about how to apply, then CreditMantri can guide you. You can typically apply for a Loan Against Property which can be utilized to meet your expenses.
You can check your eligibility and apply for a Loan Against Property by signing up with CreditMantri.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence the chances of your business loan application getting approved are higher.
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