Loan Against Rentals to consolidate your debts from Capital Small Finance Bank.

Unleash the power of your let out or leased property to pay off your loans.

Capital Small Finance Bank Loan Against Rentals

This loan helps property owners who have let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs. This loan scheme can also be used to consolidate high-interest debts.

Features of Capital Small Finance Bank Loan Against Rentals (Loan Against Rent Receivables)

Why this Loan?

  • The Capital Small Finance Bank Loan Against Rentals is designed to help borrowers who have let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs
  • This loan can be availed to meet the financial needs for business expansion, education expenses, wedding expenses, purchase of a new property, repayment of existing loans, etc. It cannot be used for speculative reasons
  • Borrowers can also avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts

Loan Amount

  • The maximum loan amount sanctioned under this scheme is up to 60% of the market value of the property

Interest

  • The applicable interest rate on this loan is defined as the sum of two factors namely, one-year Marginal Cost of Funds based Lending Rate (MCLR) and Spread. As of October 2020, the one-year MCLR of Capital Small Finance Bank is 10.05%. The Spread factor is decided by the bank based on the loan type, quantum of loan, credit score of the borrower, etc.

Repayment

  • This loan must be repaid within 7 years or the unexpired lease period, whichever is less

Security Needed

  • The bank asks for the assignment of future rent receivables in favour of the bank
  • The bank also asks for mortgage of the property given on rent and a third-party guarantee to secure this loan

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 40% of the loan amount as margin for this loan

Processing Charges

  • The bank charges up to 1% of the loan amount for processing the loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income proof, income tax assessment or IT return documents of the borrower
  • Property related documents

Reference Facts

  • Capital Small Finance Bank Website: www.capitalbank.co.in
  • Headquarters: Jalandhar, Punjab
  • Call Centre Number: +181 505 1111