CORPORATION BANK-CORP RENTAL

Corp Rental - Encash your future rent receivables from commercial properties

1.Introduction

The Scheme envisages financing the owner of the commercial properties against future rent receivables for the unexpired period of lease specified in the lease agreement.

2. Eligibility

Eligible applicants for financing under the Scheme would be Individuals/ Partnership Firms/ Corporates/ Trusts/ HUFs, owning commercial buildings let out to reputed organizations, where the unexpired period of lease is generally more than three years.

NOTE: Age of the commercial building leased/ let out shall not be more than 15 years.

3. Purpose

The loan may be availed for any productive purpose such as taking up new projects, business or towards contingencies or to meet domestic/ personal/ any other commitments.

4. Quantum of Loan

The minimum loan amount is Rs.5 lakhs .No upper ceiling [ subject to prudential exposure limits fixed by the Bank ].

Only fixed loans are to be considered under the Scheme

5. Assessment of Eligible Loan Amount & Margin

The quantum of loan should be restricted to the extent of 70% of rent receivable net of TDS, Taxes and Rent Deposit with 30% margin during the unexpired period of the lease [upto a maximum of 120 months only].

6. Security

Charge over rent receivables and equitable mortgage of building property whose rent is charged to the bank.

7. Third Party Guarantee

In the case of loans to partnerships, Trusts and Private Ltd.Companies, personal guarantee of partners, Trustees and promoter directors, respectively, should be obtained without fail. No separate third party guarantee need be insisted upon in such cases.

In all cases other than Corporates, suitable third party guarantee should invariably be obtained.

8. Rate of Interest: 13.25% with effect from 04.05.2009

9. Repayment

Loan shall be repaid in Equated Monthly Installments within the unexpired period of lease or 120 months (maximum) whichever is less.

10. Processing Charges

A one time up-front fee of 1% of the loan amount.

CORPORATION BANK-MEDITECH-FOR HOSPITAL EQUIPMENTS

Corp Meditech - to purchase Medical Equipment

1. Eligibility

Any Registered Medical Practitioner in the age group of 23 to 65 years either singly or jointly with spouse/other close relatives, with a minimum experience of one year for doctor/s.

Two or more registered medical practitioners jointly with spouse/close relatives, or a firm where at least 50% partners are doctors OR a company owned by at least 50% by doctors.

Professionals managing Medical Diagnostic Centers & Testing Labs

Hospitals which are being run/managed by Companies/Trusts/Institutions, where the ownership is at least up to 50% with doctors.

2. Purpose

To finance brand new Electro Medical & other sophisticated equipments including OT equipments, Air conditioners, ambulance, Generators, Refrigerators, Personal Computers and accessories with related software and UPS etc.

In the case of setting up of clinics, purchase of furnitures & fixtures, furnishing, Air conditioning, Electrification may also be financed.

3. Loan amount

Up to Rs.2.50 crore. [ Loans above Rs.25 lakhs are assessed based on on DSCR]

4. Margin

Margin to be maintained at 15% of the cost of equipments/assets to be financed.

5. Rate of Interest

12.00% p.a. with effect from 04.05.2009

6. Security

Loans upto to Rs.10 lakh are to be secured by hypothecation of machinery/equipments/assets, financed by the bank & a suitable third party guarantee.

Loans for above Rs.10 lakh are to be invariably secured by collateral security of immovable property OR other approved securities like Bank deposit/NSC/LIC policy, etc. valued at least 50% of the loan amount in addition to the hypothecatiOn of assets financed.

7. Guarantee

Not Mandatory. However, based on their risk perception, Sanctioning Authorities may, on case to case basis, stipulate suitable third party guarantee.

8. Repayment

Maximum 60 months in EMIs [including initial moratorium of upto 3 months]. Upto 84 months considered depending on useful life of asset.

9. Service Charges

0.50% of the loan amount sanctioned subject to a minimum of Rs.1000/-