Rent Encash Loan to consolidate your debts from Indian Overseas Bank.

Leverage the power of your let out or leased property to pay off your debts

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

Loan Amount

  • The maximum loan amount sanctioned under this scheme is up to 75% of the rent receivable for the unexpired period of lease

Interest

  • 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%

Repayment

  • This loan must be repaid within 10 years or the unexpired lease period, whichever is less

Security Needed

  • 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

Processing Charges

  • The bank charges up to 0.75% of the loan amount excluding tax 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 including lease deed, approved building plan, etc.

Reference Facts

  • 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