House Rent Loan

get loan against future rental income

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

House Rent Loan

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
50% of the rent receivable less TDS if any, over the period of 84 months or residual lease / rent agreement period whichever is lower subject to a maximum of Rs. 400 Lakhs. Note: The minimum prescribed margin over the net rent receivables (Rent receivables less TDS if any) is 50%. However, the margin shall be increased based on rate of interest at the time of sanction so as to ensure that the EMI amount shall not exceed 90% of net rent receivable per month.
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 - BR + 2.75% (13.05% p.a.).
  • If the lessor (Building Owner) remits the monthly instalment to the loan account from the sources of rent and other sources - BR + 3.75% (14.05% p.a.).
  • Current Base Rate for Lending (BR) is 10.30% p.a.
Margin
Minimum 50% on the future rent to be received less TDS if any (maximum of 84 months) or residual lease / rent agreement period, whichever is 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
1.00% of Limit sanctioned without any maximum cap.
Documentation
Simple documents as per our Bank Norms.

Loan EMI Calculator:

Loan EMI Calculator

Base Lending Rate 10.30% p.a. updated Dec 01, 2016.

For a House Rent Loan of Rs. 5,00,000 repayable in 60 equal monthly installments at an interest rate of 13.05% p.a., the equated monthly installment (EMI) payment shall be around Rs. 11,389.34. Click for Monthly Amortization Chart.


All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.