SBI Rent Plus Loan Scheme best fit for owners who has rental income from their real estate properties - residential or commercial - located in Rural / Semi-urban / Urban / Metro areas to corporate bodies. This Term loan amount can be utilized to invest further projects or adjustments of the liquidity.
Eligibility for Rent Plus Loan Scheme
Owners of residential buildings and commercial properties in Rural/Semi-urban/Urban/Metro areas which are to be rented or already rented to MNCs/ Banks/ Large & medium size corporate.
Quantum of Finance from Rent Plus Loan Scheme
Min. Rs. 50,000.00; Max. Rs. 5 crore for properties located at Non-Metro Centres and Rs. 7.50 crores for properties located at Metro Centres. There will be no differentiation on the basis of constitution of the applicant.
Primary Security for Rent Plus Loan Scheme
Assignment of receivables and recording of power attorney with the lessee is a must.
Collateral Security for Rent Plus Loan Scheme
- First charge on buildings against the rentals of which the loan would be sanctioned (value of the property should be double the amount of loan) or any other acceptable property of equal value.
- Equitable Mortgage of immovable property by deposit of title deed.
- In case of partnership firm, personal guarantee of the partners of the building. In case of company personal guarantee of directors to be obtained.
Processing charges and cost of valuation for Rent Plus Loan Scheme
2% of loan amount, subject to a maximum amount of Rs.1,00,000/=, to be paid upfront as processing charges. The charges for valuation of the property are to be borne by the applicant. Please see Banks website for updated processing charges and cost of valuation.
Other Requirements for Rent Plus Loan Scheme
Margin: Margin to be 40%
Repayment: Equated Monthly Instalments of 7 years or residual lease period.
Prepayement: 1% of the loan amount prepaid.
Insurance: The amount of insurance should cover the value of assets charged to the Bank.
Applicability: Metro / Urban / Semi-urban/ Rural centers.
Interest: Please see SBI Website.