The Scheme envisages financing the owner of the commercial properties against future rent receivables for the unexpired period of lease specified in the lease agreement.
Eligible applicants for financing under the Scheme would be Individuals/ Partnership Firms/Corporates/ Trusts/ HUFs, owning commercial buildings let out to reputed organisations/ institutions in commercial /industrial/software sector, where the unexpired period of lease is generally more than three years.
The Lessee should be reputed companies i.e Private/Public Limited companies or Multi-National Companies, Public Sector Undertakings/Banks, State/Central Government Departments etc.
The lease agreement shall be registered for full tenor of lease, irrespective of loan tenor
The loan may be availed for any productive purpose such as taking up new projects, business or towards contingencies or to meet domestic/personal/any other commitments.
The minimum loan amount is Rs. 5.00 lakh
The loan amount shall not exceed 70 % of the net rent receivables for the unexpired period of lease not exceeding 120 months.
On lease Rentals: 30 %
On immovable property taken as security: 35%
Charge over rent receivables.
Mortgage of building whose rent is charged to the bank.
Age of the Building offered as security shall not exceed 30 years. However, residual /balance life of the building shall be at least 5 years more than the repayment tenor.
The building mortgaged to the bank and whose rent is charged to the bank for the loan availed against the same, should be comprehensively insured with bank clause.
Rate of Interest
Floating rate of interest is linked to the MCLR & subject to annual reset.