A loan against rent receivable is provided by all the public and private banks for managing future rent on an owned property as collateral. It is a kind of a personal loan,it can be used for boosting the condition of taking up new projects, helping in business activity, expenses related to marriage or education, repair or renovation, etc. This loan can be provided to anyone who has any type of property that has been issued on a commercial basis.
|Interest email@example.com% onwards|
|Loan amount||From 25 lakhs to 200 crores.|
|Processing fee||Up to 1%|
|Bank name||Interest rate||Processing fee|
|State bank of India||10.70%||1%|
|Union bank of India||9.80%||1%|
|Yes Bank Ltd.||8.00%||1%|
|RBL Bank Ltd.||8.50%||1%|
|Standard Chartered bank||7.50%||1%|
|South Indian Bank Ltd.||10.70%||1%|
|United bank of India||10.75%||1%|
|Central bank of India||10.10%||1%|
|HDFC Bank Ltd.||7.25%||1%|
|Bank of India||8.35%||1%|
|Bandhan Bank Ltd.||10.00%||1%|
|Bank of Baroda||8.00%||1%|
|Axis Bank Ltd.||7.50%||1%|
|ICICI Bank Ltd.||7.75%||1%|
|Kotak Mahindra bank||7.25%||1%|
|IDFC First Bank||9.50%||1%|
|LIC Housing Finance||8.00%||1%|
|Punjab National Bank||8.70%||1%|
Low-interest rate: - The interest rate on loans against rent receivables is generally low as it is a secured loan. The rate of interest differs from bank to bank and it helps you to compare and choose the best deals.
Flexible tenure: - Banks and NBFCs offered freedom of flexibility usage, as it has a longer repayment tenure of up to 8 to 10 years.
Speedy approval: - It has a faster approval of the loan, as it is given against the amount of rent as collateral, so the justification is done to be less.
Less documentation: - Loan against rent receivables requires less documentation as the process is totally online.
Maximum property value: - The borrower can get a loan amount of up to 60% to 85% of the property value as the maximum loan amount.
Loan amount: - The amount of the loan is based on the market value of the property value.
Eligibility depends on various factors such as sales or business turnover, age of an applicant, creditworthiness, repayment history, total work experience, etc.
Less income: - The income of the borrower illustrates their capacity for repayment. If the borrower has any existing loan, then the liability of the income ratio will be evaluated by the banks to see whether the borrower has the ability to repay another loan.
Borrower's age: - If the age of the borrower is between 25 to 30 years, then he has enough time to repay the loan as their days of working are longer, and if the age of the borrower is nearest to the age of retirement, then he has fewer working days and eligibility become less to pay back the amount of the loan.
Financeseva allows you to choose and compare the best deals offered by tops banks for loans against rent receivable.
Also read: - 5 Things You Should Know Before Apply for a Loan Against Property