House Rent Loan

Learn more about our Home Rent Loan Scheme under TMB Retail Loan Products.

This loan product can be used to avail loans against future rental receipts of your properties. The rent received every month is used as the EMI towards the loan sanctioned. Any Lessor having a residential / commercial property which is currently rented to MNC / Banks / Reputed Corporates etc. can apply for loan under this scheme. Loans can be availed for 36 months or residual lease agreement whichever is less for upto Rs. 50 Lakhs.

Purpose

To meet the financial requirement of the owner (applicant) of the building (Lessor).

Eligibility

Owners of buildings and commercial properties in Semi urban/Urban/Metro areas which are to be rented or already rented to Multi National Company's / Banks / Reputed Corporates etc.

Loan Amount

75% of the rent receivable less TDS if any, over the period of 36 Months or Residual Lease / Rent Agreement period whichever is lower subject to a maximum of Rs.50.00 Lakhs.

Security

On EQM of building against the rentals of which the loan would be sanctioned. (150% of the loan amount should be covered as collateral security).

Pre-requisite

Assignment of rent receivables from lessor is must. If lessee agrees to remit the rent directly to the loan account of the borrower, a power of attorney should be obtained from the Lessor and Lessee.

Repayment

5 Years or residual lease/rent agreement period, whichever is lower.

Rate of Interest

If the lessee agrees to remit the rent directly to the Loan account of the borrower - PLR + 0.00% (14.00% p.a.).

If the lessor (Building Owner) remits the monthly instalment to the loan account from the sources of rent and other sources - PLR + 1.00% (15.00% p.a.).

Current Prime Lending Rate (PLR) is 14.00% p.a.

Margin

25% on the future rent to be received less TDS if any. (Maximum of 36 Months) or residual lease/rent agreement period, whichever lower.

Penal Interest

Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.

Requirements

Application

Assignment of rent receivables from lessor. If lessee agrees to remit the rent directly to the Loan account of the borrower, a power of attorney should be obtained from the Lessor and Lessee.

In the case of Partnership firm, (Owner of the building) Personal guarantee of all the partners of the firm.

In the case of Company. (Owner of the building) Personal guarantee of all the directors is to be obtained.

Guarantee consent letter from third party, if necessary.

Insurance

To cover the value of the assets charged to the bank.

Processing Charges

0.50% of the Loan Amount

For Loans below Rs. 50,000.00 Minimum Charges is Rs. 100.00

For Loans Rs. 50,000.00 and above Minimum Charges is Rs. 500.00 and Maximum Charges is Rs. 1,00,000.00