Capital Local Area Bank Loan Against Rentals
Overview about Capital Local Area Bank Loan against Rentals
Owning a property in India is a safe and secure income source, but individuals who wish to get the most out of it can take a loan against rentals from Capital Local Area Bank. The largest local area bank in India, CLAB offers this unique loan to maximise asset use, helping one progress faster. With a banking history of over 15 years and a presence in three districts, Capital Local Area Bank was set up to promote financial inclusion among local residents, providing modern banking facilities at affordable costs. The bank is today scheduled to grow to greater heights, with expansion on the anvil, taking the number of branches close to 50.
Purpose for which this loan can be used
With the real estate sector booming in India, there is a huge scope to develop spaces and turn them into hubs. This loan against rentals can be used to meet any financial requirement while constructing a commercial property or to develop a new space. Owners of commercial property can avail this loan against their future rent receivables to meet any genuine financial need, with no restriction on its use as long as it stays within the ambit of the law.
Eligibility Criteria for Capital Local Area Bank Loan against Rentals
Individuals who wish to avail a Capital Local Area Bank loan against rentals need to satisfy the following basic criteria.
- Property owner – The borrower should be the owner of the property, either completely or through a partner.
- Organisations – Corporates, trusts and HUFs who own property can also apply for this loan.
- Lessee – The lessee should be of repute, being either a private or public company, MNC or bank.
- Security – A borrower should provide security in the form of mortgage of property.
- Guarantor – A third party guarantor who is acceptable to the bank is required.
Features and Benefits of Capital Local Area Bank Loan against Rentals
Some of the major features and benefits of this loan are mentioned below.
- Multipurpose loan – This loan amount can be used to meet any financial requirement, not restricting its usage to a particular field/area.
- Loan amount – A loan equivalent to 60% of the expected future monthly rent for a particular property can be availed. This amount is subject to it meeting this requirement for 84 months.
- Margin – The margin on this loan is 40%.
- Prepayment charge – A 1% prepayment charge will be levied if the loan is prepaid a year before date.
- Competitive interest rate – This loan can be availed at an attractive and competitive interest rate, ranging from 12% per annum to 16.10% per annum.
- Fast processing – Availing this loan is simple and hassle free, with quick processing and minimal documentation.
Documents Required for Capital Local Area Bank Loan against Rentals
Individuals who wish to avail this loan need to submit the following documents.
- Valid government approved ID proof (PAN card, passport, driving license, etc.)
- Proof of income (bank statement, income tax returns, etc.)
- Proof of residence (lease agreement, utility bills, etc.)
- Documents pertaining to ownership of property
- Details about rent
The bank could ask for additional documents as per its discretion.
Note: The interest rate is subject to change at the sole discretion of Capital Local Area Bank and individuals should check these before applying.