Do bank provide loan on rental income?
Yes, there are various lenders ready to provide loan on rental income if you have commercial property rented out & require loan.
Loan Against Rent Receivable
| Bank Name | Interest Rate Range (%) | Processing Fee | Foreclosure Charge | |
|---|---|---|---|---|
|
7.50%
|
1%
|
2% - 4%
|
|
|
8.00%
|
1%
|
2% - 4%
|
|
|
8.35%
|
1 %
|
2% - 4%
|
|
.png)
|
11.70%
|
1%
|
2% - 4%
|
|
|
10.10%
|
1 %
|
2% - 4%
|
|
|
8.00%
|
1%
|
2% - 4%
|
|
|
7.25%
|
0.50%
|
2% - 4%
|
|
.png)
|
7.75%
|
1%
|
2% - 4%
|
|
|
9.50%
|
1%
|
2% - 4%
|
|
|
|
7.20%
|
0.50%
|
2% - 4%
|
|
|
8.80%
|
1%
|
2% - 4%
|
|
|
9.00%
|
1%
|
2% - 4%
|
|
|
7.25%
|
1%
|
2% - 4%
|
|
|
10.70%
|
1%
|
2% - 4%
|
|
|
8.50%
|
1%
|
2% - 4%
|
|
|
8.70%
|
1%
|
2% - 4%
|
|
.png)
|
9.80%
|
1%
|
2% - 4%
|
|
|
10.75%
|
1%
|
2% - 4%
|
|
|
10.00%
|
1%
|
2% - 4%
|
|
|
8.00%
|
1%
|
2% - 4%
|
|
|
7.50%
|
1%
|
2% - 4%
|
|
|
10.00%
|
1%
|
2% - 4%
|
|
|
9.00%
|
1%
|
2% - 4%
|
|
|
10.70%
|
1%
|
2% - 4%
|
|
|
9.50%
|
1%
|
2% - 4%
|
|
|
9.00%
|
1%
|
2% - 4%
|
|
|
7.50%
|
1%
|
2% - 4%
|
|
|
9.40%
|
1.00%
|
2% - 4%
|
|
| Bank Name | Min Interest Rate | |
|---|---|---|
|
|
7.50% |
|
|
|
8.00% |
|
|
|
8.35% |
|
|
|
11.70% |
|
|
|
10.10% |
|
|
|
8.00% |
|
|
|
7.25% |
|
|
|
7.75% |
|
|
|
9.50% |
|
|
|
7.20% |
|
|
|
8.80% |
|
|
|
9.00% |
|
|
|
7.25% |
|
|
|
10.70% |
|
|
|
8.50% |
|
|
|
8.70% |
|
|
|
9.80% |
|
|
|
10.75% |
|
|
|
10.00% |
|
|
|
8.00% |
|
|
|
7.50% |
|
|
|
10.00% |
|
|
|
9.00% |
|
|
|
10.70% |
|
|
|
9.50% |
|
|
|
9.00% |
|
|
|
7.50% |
|
|
|
9.40% |
|
Eligibility Criteria
What you mean by Loan against rent receivable Eligibility Criteria?
Have you rented your commercial property & looking to avail loan. Let your worry be aside, Loan against rent receivable allow you to get 50% - 60% of commercial property value as a loan amount. Minimal documentations are required which allow you to get hassle free loan.
Loan against rent receivable Eligibility Criteria
Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness ...etc.
Eligibility Criteria for Self-Employed Individuals
- • Age Limit of Self –Employed Individuals - 24 to 60
- • Your commercial property must be rented out & receiving regular rent
- • Property must be build following local government authority guidelines
- • Must done proper rent or lease agreement
Note: - As a minimum loan amount you can avail 25 lacs to maximum loan amount of 200 Cr.
What are the factors generally affecting Loan against rent receivable Eligibility Criteria?
There are few factors that generally affects Eligibility Criteria as given below: -
Applicant age: - If you are 30 years old at the time of getting loan then you have enough time period to pay back the loan as your working days will be longer. But if you are near to your retirement age then you lose lowering your eligibility as you working days are very less to repay loan amount, hence lender will not prefer you give approval for loan.
Lower Income: - Your income indicates your repayment capacity. If you already having existing loan then, debt to income ratio will calculated by lender that you have enough capacity to repay another loan or not. So, it might lower chances.
What are the ways to increase Loan against rent receivable eligibility?
To increase Loan against rent receivable eligibility, you need to consider points as given below, this will aid you in increasing your eligibility level.
Add collateral: - Lender need trust from his/her applicant is capable to repay loan, in this scenario if you add your collateral/assets lender trust level increase that if applicant fails to pay back the loan amount, collateral is enough to auction to match the loan amount as it will your chances of loan approval.
Extra importance of payment: - As you know lender check your credit score to know your previous transaction history. Therefore, always give extra importance of payment while taking place in time or not. A clean & clear repayment indicate your sincerity of payment making on time.
Documents Required
- Individual
- Prop Firm
- Partnership Firm-LLP
- PVT. LTD.
- Photographs 2
- PAN Card Copy
- AADHAR CARD + PASSPORT
- ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF
- LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE
- LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT
- LOAN SCHEDULE & SANCTION LETTER (IF RUNNING
- COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS
- PROCESSING FEE CHEQUE IN FAVOUR OF BANK
- LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER
- PHOTOGRAPH BOTH
- PAN CARD CLEAR COPY PROPRIETOR.
- ADD PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR.
- OFFICE ADDRESS PROOF LATEST. (ELECTRICITY BILL, TELEPHONE BILL)
- FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY
- LAST 1 YEAR GST RETURN COPY
- FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE
- PROVISIONAL FINANCIAL AY 2019-20
- BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED.
- 6 MONTH SAVING ACCOUNT STATEMENT UPDATED (PROPRIETOR)
- IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED
- AGREEMENT TO SELL COPY
- PROPERTY PAPERS WITH CHAIN SANCTION MAP
- PHOTOGRAPH PARTNERS
- PAN CARD - COMPANY, ALL PARTNERS
- ADD PROOF - ALL PARTNERS (PASS PORT, VOTER I CARD ,PAN ,ADHAAR)
- FIRM ADD PROOF- LATEST ANY UTILITY BILL.
- PARTNERSHIP DEED COPY
- GST CERTIFICATE
- GST Return last 1 years
- 3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH C.A.CERTIFIED.
- PROVISIONAL FINANCIAL AY 2019-20
- 3 YEAR.ALL PARTNER INDIVIDUALS ITR + COMPUTATION
- FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED
- ALL PARTNER SAVING A/C STATEMENT 6 MONTH.
- IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED.
- Agreement To Sell copy
- PROPERTY PAPERS COMPLETE CHAIN WITH MAP
- ALL DIRECTORS PHOTOGRAPH
- CLEAR PAN CARD - COMPANY AND ALL DIRECTORS.
- ADDRESS PROOF – COMPANY AND DIRECTORS.
- LIST OF DIRECTOR & SHARE HOLDER WITH CA CERTIFIED AS ON DATE
- MEMORANDOM
- ORDER IN HAND AND COMPLETE COPY (if applicable)
- GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE.
- 1 YEAR GST RETURNS
- ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS.
- LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE.
- PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR
- COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED.
- ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH.
- IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED.
- AGREEMENT TO SELL COPY
- PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP
Frequently Asked Questions
How much maximum loan amount can I get on loan against rent receivables?
In general, you get 60% - 85% of property value as a maximum loan amount.
How much loan against rent receivables charge for processing fee?
Starting from 0.5% to 1% on loan amount are charged for processing applications.
Who are eligible for loan against rent receivables?
Individual who have commercial property rented out can able to apply for loan & get benefits.
What is the minimum & maximum loan amount in loan against rent receivables?
Generally, the ranges various from 25 lakhs to 200 Crores.
What is loan against rent receivables?
It’s a kind of loan offered by various banks to individual who have commercial property rented out & looking forward a loan, can avail this facility.
Which are the document required for loan against rent receivables?
- Application form
- Identity proof
- Address proof
- Income proof
- Property documents
- Latest 1 year bank statement
What are the things to consider while availing an loan against rent receivable?
The property you have rented out need lease agreement & tax returns to provide lender as a proof.
Related Topics
Personal need loan products
Secured loan products
Unsecured loan products
- Business Loan
- Professional Loan
- Dropline Overdraft Limit
- Machinery Loan
- MSME Loan
- Capital Loan
- Construction Equipment Loan
- Supply Chain Finance
- Dealer Finance
- Vendor Finance
- Startup Loan
- Stand up Loan
- Medical Equipment Finance
- Factoring Finance
- warehouse receipt Finance
- Agri Invoice Discounting
- Loan Against Credit Card Receipt
- Mudra Loan
Project Loan Products
- Project Loan
- Solar Power Project Loan
- Solar Rooftop
- Cold Storage Loan
- Warehouse Construction Loan
- School Loan
- College Loan
- Hotel Funding
- Construction builders
- Hydro Power Project Loan
- Transport Logistics
- Energy sector loan
- Water & Sanitation Funding
- Tourism & Hospitality
- Educational & Institutional loan
- Healthcare Industry
- Power Project
9863-02-02-02