Lease Rental Discounting - Business

Eligibility Criteria

• Owners of residential buildings and commercial properties, which are to be rented or already
• rented to MNCs / Banks/ Large & Medium size Corporates / Government Offices (both Central and State)/reputed Public bodies such as Municipal Corporations etc.
• However, the properties should not be or have been leased to Social Infrastructure projects such as Schools, Colleges, Orphanages, Hospitals, Old age homes, Nursing homes etc.

Collateral Security

• Equitable Mortgage on building against the rentals of which the loan would be sanctioned or any other acceptable property of similar value. The realizable value of property to be mortgaged should be at least 143% of the loan amount

Other Conditions

Standing Instructions have to be set up in CBS for transfer of the EMI from the Escrow Account to Term Loan account.

The Loan should be disbursed only after:

• The execution and registration of Lease Deed.
• Noting of EM is mandatory in States where such provision exists. Where creation of EM is not possible Registered Mortgage should be done.
• The occupation of premises by lessee or after the receipt of first lease rent whichever is later.