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.
| Bank Name | Interest Rate Range | Processing Fee | Foreclosure Charge | |
|---|---|---|---|---|
|
7.50%
|
1%
|
2%
|
|
|
8.00%
|
1%
|
2%
|
|
|
8.35%
|
1 %
|
2%
|
|
|
11.70%
|
1%
|
2%
|
|
|
10.10%
|
1 %
|
2%
|
|
|
8.00%
|
1%
|
2%
|
|
|
7.25%
|
0.50%
|
2%
|
|
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|
7.75%
|
1%
|
2%
|
|
|
9.50%
|
1%
|
2%
|
|
|
7.20%
|
0.50%
|
2%
|
|
|
8.80%
|
1%
|
2%
|
|
|
9.00%
|
1%
|
2%
|
|
|
7.25%
|
1%
|
2%
|
|
|
10.70%
|
1%
|
2%
|
|
|
8.50%
|
1%
|
2%
|
|
|
8.70%
|
1%
|
2%
|
|
.png)
|
9.80%
|
1%
|
2%
|
|
|
10.75%
|
1%
|
2%
|
|
|
10.00%
|
1%
|
2%
|
|
|
8.00%
|
1%
|
2%
|
|
|
7.50%
|
1%
|
2%
|
|
|
10.00%
|
1%
|
2%
|
|
|
9.00%
|
1%
|
2%
|
|
|
10.70%
|
1%
|
2%
|
|
|
9.50%
|
1%
|
2%
|
|
|
9.00%
|
1%
|
2%
|
|
|
7.50%
|
1%
|
2%
|
|
|
9.40%
|
1.00%
|
2%
|
|
| 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% |
|
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.
Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness ...etc.
Note: - As a minimum loan amount you can avail 25 lacs to maximum loan amount of 200 Cr.
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.
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.
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.
How much maximum loan amount can I get on Loan Against Rent Receivable?
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 Receivable?
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 Receivable?
Generally, the ranges various from 25 lakhs to 200 Crores.
What is Loan Against Rent Receivable?
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 Receivable?
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.
Want to get financial service? Advise by CA Vikas Jain
CA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
Read MoreCA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
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