(Finance against Future Rental Receivables)

Loan Amount : Depends on the rent terms. Maximum loan amount – Rs. 10.00 Cr.

Purpose : Purpose for which loan is availed must be shown in the application. Purpose should not be for hoarding, speculation or activity restricted by GOI or State Governments or local bodies.

Primary Security : Assignment of lease rentals.

Collateral Security : If lease agreement is not registered 100% collateral security is necessary.

Loan Amount, Margin

Category Margin
  • Amount equal to future rentals discounted without any
    collateral security.# (present value of future Nil
    stream of rent receivables)
    # provided the lease agreement is registered
  • Amount of future rentals ( without discounting) 25% of the full rent
    fully covered by collateral security receivable

Rate of Interest : Click here to view the latest Rate of Interest

Repayment : As EMI equal to un-expired lease period or extended lease period subject to a maximum of 7 years.

Upfront fee : 1.00% of the loan amount

Penal interest : 2 % on the defaulted amount for the defaulted period.
10. General Conditions :
  • The borrower should be known to the bank or duly introduced.
  • The tenant should be a MNC, Bank, Financial institution, Insurance Company, Blue Chip Company, Reputed Corporation, PSU, Government Dept., Quasi Government etc.
  • Loan repayment period will be the remaining period of Lease period or extended lease period.
  • Irrevocable PA should be executed by the lesser/ borrower in favour of the Bank to collect the future rent from the lessee which should be accepted and be registered with the lessee/ tenant who should undertake to pay the lease rentals direct to the Bank.
  • If there is option in favour of Lesser for incremental rent after a specific period, as per agreement, the incremental rental value shall be included for the calculation of the loan amount.
  • Only post TDS Rental amount will be accepted for calculations.
The scheme details are furnished in brief only. For more details please contact any of the branches.
*All loans are granted at the discretion of the Bank and conditions as stipulated by the Bank