Loan Against Future Rent Receivables to consolidate your debts from UCO Bank

Leverage the power of your rented/leased property to pay off your debts

UCO Bank Rent Loan (Loan Against Rent Receivables)

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 can also be used to consolidate debts.

Features of UCO Rent Loan (Loan Against Future Lease Rentals)

Why this Loan?

  • The UCO Bank Rent Loan is meant for property owners who have rented 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 trading, capital market or 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 70% of the total rent receivables during the unexpired lease period

Interest

  • For the Owners of UCO Bank Branch Premises: The interest rate applicable to this loan is defined as the sum of two factors: UCO Float Rate and a Spread factor of 1.30%. As of October 2020, the UCO Float Rate is 6.90% bringing the effective interest rate at 8.20%
  • For Residential Property: The interest rate applicable to this loan is defined as the sum of two factors: UCO Float Rate and a Spread factor of 2.15% for repayment period up to 3 years and 2.40% for repayment period above 3 years. As of October 2020, the UCO Float Rate is 6.90% bringing the effective interest rate at 10.05% for repayment period up to 3 years and 10.30% for repayment period above 3 years
  • For Commercial Property: The interest rate applicable to this loan is defined as the sum of two factors: UCO Float Rate and a Spread factor of 2.65%. As of October 2020, the UCO Float Rate is 6.90% bringing the effective interest rate at 10.55%

Repayment

  • This loan must be repaid within 10 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

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges at least 30% of the loan amount with a minim of Rs. 1 lakh as margin for this loan

Processing Charges

  • The bank charges up to 0.50% of the loan amount excluding tax up to a maximum of Rs. 2 lakh for processing the loan

Documents Needed for Individuals (Salaried and Non-Salaried)

  • 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

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Property related documents

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • Property related documents

Reference Facts

  • UCO Bank Website: www.ucobank.com and www.ucoebanking.com (net banking)
  • Headquarters: Kolkata, West Bengal
  • Call Centre Toll-Free Number: 1800 274 0123