Looking for MSME Loan Against Future Lease Rentals from Union Bank of India?

Get all the information you need on the Union Rent Scheme from Union Bank of India below.

Union Bank of India Union Rent Scheme

This loan is designed to help property owners who have leased out their commercial or rental properties in the metro, urban and semi-urban areas to public sector undertakings, reputed private education institutions, reputed private hospitals or nursing homes, franchises of reputed corporates and so on to get funds for their various needs.

Features of Union Rent Scheme (Loan Against Future Lease Rentals)

Why this Loan?

  • The Union Rent Scheme is the perfect MSME loan to help landlords meet the expenses of alteration, addition or renovation to the premises. The loan amount can also be used for business purposes
  • The maximum loan amount depends on the Net Present Value of net rent receivables within the unexpired period of lease up to 10 years or loan tenure, whichever is lower

Loan Amount

  • The loan amount should not exceed 75% of the value of the property or 75% of the net rental income for the residual lease period
  • Loan must be recoverable from applicable rent receivables

Interest

  • The interest rate for this loan is defined as the sum of two factors namely, one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium of 4.90% for Commercial Real Estate (CRE) loans and 3.90% for Non-CRE loans. Currently, the MCLR of Union Bank of India is 7.20% bringing the effective interest range at 12.10% for CRE loans and 11.10% for non-CRE loans

Repayment & Moratorium

  • This loan must be repaid within 10 years
  • No moratorium period is allowed under this loan and the repayment starts from the next month of the disbursement

Security Needed

  • The bank asks for assignment of lease rentals

Borrower’s Contribution to Total Cost (Margin Money)

  • These details are not mentioned on the bank’s website. We suggest getting in touch with the bank to get more information

Margin & Processing Charges

  • This information is not available on the bank’s website. A bank representative will be able to answer these questions, we suggest calling them for details

Documents Needed for Individuals

  • 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/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • 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

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
  • 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: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

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

Reference Facts:

  • Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244