Bank of Baroda provides a specific loan that can help individuals get financing against the value of their owned immovable properties. This loan allows liquidity options for property owners who would otherwise need to avail of business loans or personal loans for any business or personal needs.
As the name of this loan suggests, this loan allows property owners (acceptable by Bank of Baroda) to get financing by pledging an owned property or set of properties. The loan thus availed can be utilised for any general business or personal needs, other than speculative ones.
The eligibility criteria to be met in order for the institution to be able to sanction the loan include the following entities -
The financing modes allowed under the Baroda Loan against Rent Receivables is a term loan.
Based on the credit-worthiness of the applicant, Bank of Baroda can provide loans that can range from a low limit of INR 5 lakhs to a high limit of INR 750 crores (subject to the discretion and satisfaction of Bank of Baroda).
55% of the rent received will be considered for general customers and 70% of the rent received by landlords of premises occupied by Bank of Baroda, its branches or its management-level employees are the statutory limits that will be considered for fixing the loan limits.
In case of loans being made available to landlords related to Bank of Baroda, the loan can be used only within the premises occupied by the bank or its associated entities.
The repayment duration can be of a maximum of 10 years.
Interest rates for a Loan against Rent Receivables could be of a maximum of Base Rate + 3.250% per annum based on Bank of Baroda’s discretion. Landlords associated with Bank of Baroda can enjoy a lower interest rate of Base Rate + 1.25% per annum. The rates are as per November 2015.
The standard list of required documents for applying for this loan are mentioned as follows –
The Loan against Rent Receivables from Bank of Baroda is a secured loan that leverages on the value of an owned immovable property and provides for a good financing option for individuals to meet any needs, personal or business related.
The loan period can be of 120 months and the loan processing time is very less when compared to other business or personal loans. The loan process involves minimal documentation.
Through Bank of Baroda’s website the forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail Bank of Baroda requesting an executive assistance for application process.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.