- Owners of residential buildings and commercial properties (including private School buildings) in rural, semi-urban and urban areas which are to be rented or already rented to MNCs/Banks/large and medium sized of corporate.
- Owners of the property who have rented out their premises to our Bank are also eligible.
Age of the Building: Not more than 20 years
Purpose: Meeting business or personal needs but not speculative purpose.
Type of Facility:
- Term Loan: For acquiring fixed assets
- Cash Credit: Working Capital Requirements.
- Minimum: Rs. 50,000/- Maximum: Rs. 1.00 Crore
- As per requirement of the applicant or limit arrived at, whichever is less but within the prescribed/prudential limit of exposure of the Bank
Margin: Minimum - 15%
Assessment of Loan: Loan amount will be assessed in such a way that it is repaid within the residual lease period or maximum 84 months, whichever is earlier. Net rent/service charges receivable will be calculated after making necessary deduction from gross rent receivable.
Other Stipulation: Clean Power of Attorney in case of lease Agreement being executed by both parties i.e. landlord (or landlady) and tenant(s). In case leasing out is made by verbal understanding, as it happens in our State, an undertaking should be obtained to maintain Bank Balance with the sanctioning Branch covering 3 (three) Months EMI amount at any point of time during the currency of loan.
Primary: Assignment of present or future cash flows/receivables including lease rentals, service charges, agency commission, minimum guarantee amount etc.
- Mortgage of land and buildings.
- First Charge on building against the rentals of which the loan would be sanctioned or any other acceptable property of equal value.
- In case of partnership firm, personal guarantee of all the partners of the building.
- In case of Public Ltd. Companies, if the directors are willing to extend personal guarantee and the collateral security in the form of equitable mortgage is sufficient, the stipulation of personal guarantee may be waived by the sanctioning authority.
- When our Bank is the tenant and the loan amount does not exceed Rs 25 lakhs, stipulation of Equitable Mortgage may be waived subject to the condition that the lease deed should not expire during the currency of the loan.
- Tangible securities in the shape of Bank deposits, NSC, KVP, LIP (Surrender Value) etc.
Repayment: Maximum 84 Months. The repayment will made in Equated Monthly Installments for a period not exceeding 84 months or unexpired period of lease/agreement, whichever is earlier. The repayment will start from the next month of the date of end of moratorium period, if any.
Moratorium: Maximum for a period of 3 months.
Interest: Applicable as per Bankâ€™s prevailing rate of interest at the time of sanction and is subject to change from time to time. Bank will charge interest at monthly rest on daily reducing balance.
Processing Fees: Applicable as per Bankâ€™s prevailing rate at the time of sanction.
Pre-payment Charges: Applicable for loan above Rs 5 lakh as per Bank's prevailing rate.