Sunday, May 24, 2009
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.
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