Rent Encash Loan to consolidate your debts from Indian Overseas Bank.
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Indian Overseas Bank Mortgages Liquirent (Loan Against Rent Receivables)
This loan helps property owners who have let out/leased their property situated in metro, urban or semi-urban areas to credit-worthy establishments to get financial assistance to meet their personal needs. This loan can also be used to consolidate debts.
Features of IOB Mortgages Liquirent Loan
Why this Loan?
- The Indian Overseas Bank Loan Against Future Rent Receivables is 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
- Borrowers can avail this loan to meet the financial needs for business expansion, child’s education, child’s wedding, purchase of a new property, repayment of existing loans, consolidation of debts, etc. It cannot be used for trading, capital market or speculative reasons
- The maximum loan amount sanctioned under this scheme is up to 75% of the rent receivable for the unexpired period of lease
- Repayment Period up to 3 years: The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor of 2.20%. As of May 2020, the MCLR of IOB is 7.50% bringing the effective interest rate at 10.25%
- Repayment Period more than 3 years: The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor of 2.70%. As of May 2020, the MCLR of IOB is 7.50% bringing the effective interest rate at 10.75%
- This loan must be repaid within 10 years or the unexpired lease period, whichever is less
- Loans up to Rs. 2 lakh: The bank asks for the assignment of future rent receivables in favour of the bank
- Loans above Rs. 2 lakh: The bank asks for the mortgage of leased/let out property in addition to the assignment of future rent receivables in favour of the bank. The bank may also ask for liquid collaterals depending on a case-to-case basis
Margin Money (Borrowers Contribution to Total Cost)
- As of October 2020, this information is not mentioned on the bank’s website. Please check with a bank representative at the time of applying for this loan
- The bank charges up to 0.75% of the loan amount excluding tax for processing the loan
- 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 including lease deed, approved building plan, etc.
- Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
- Headquarters: Chennai, Tamil Nadu
- Call Centre Toll-Free Number: 1800 425 444