Loans against rent receivables can be availed by individuals for personal and emergency expenses.
Purpose of Andhra Bank Loan against Rent Receivables
To meet financial requirements
Eligibility criteria for Andhra Bank Loan against Rent Receivables
The eligibility for customers who wish to take out a loan against rent receivables depends upon the following:
- Must be an individual, private limited company, public limited company, partnership or proprietorship.
- Trusts can also take out loans against rent receivables.
- Unencumbered commercial / residential properties rented out to reputed private sector / public sector / multinational undertakings, consulate offices and embassies of foreign nations are also eligible.
Features of Andhra Bank Loan against Rent Receivables
- The maximum amount of money that is granted via loans through rent receivables is Rs.10 crore.
- The loan must be repaid within 120 months or the unexpired lease period, whichever is less.
- The main security for the loan is the rent receivable.
- If the amount borrowed is under Rs.1 lac, there is no requirement to pledge collateral.
- If the amount borrowed is more than Rs.1 lac, the equitable liquid assets like deposits and NSCs or the property’s equitable mortgage can be pledged as collateral.
- A guarantor must be nominated and whether or not he/she qualifies will be determined by the bank.
Benefits of Andhra Bank Loan against Rent Receivables
- No prepayment charges
- Low processing fee
- Minimal documentation
- Hassle-free application procedure
- Dedicated team for customer service
- Flexible repayment period
Andhra Bank Loan against Rent Receivables Interest Rate
If the tenure of the loan is less than 36 months, the interest rate will be the base rate plus 2.5%. Currently, the rate stands at 12.75%. If the tenure of the loan is more than 36 months, the rate of interest applicable will be the base rate plus 2.5% plus 0.25%, which means that the rate at present is 13%.