Advantages of Loans on Rent Receivables over Personal Loans

February 24, 2007	(2 votes, average: 4.5 out of 5)  Loading ...
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Nowadays, giving a call to lure customers to buy a loan has become really popular among banks. It is quite possible that these calls may irritate you, especially when you don’t need a loan or are not interested with the options provided by that bank.

Apart from these individuals, there are people who are in a dire need to have personal loans. Reasons like marriage or an unforeseen hospitalization may encourage them to apply for loans. However, those with property rented out enjoy a much better scope. They can check out the loan options with different banks for loans against the future receivable rent of such a property.

Most state owned banks are lending such loans at little or above benchmark prime lending rates. Moreover, the banks come up with attractive deals during the festive season. Although, these are loans to the landlord against future receivable rents to the landlords, there are other parameters too need to be taken care of.

So, what should be the criteria one should follow to avail the best loan option. Our article discovers the same:

Such loans are available only in case of properties that have been rented out to public sector undertakings (PSUs), banks or recognized private companies. In the mentioned cases, the loan amount should not go beyond the future receivable rent of the property minus margin money, which may range from 20% to 25% of the future rent of the unexpired rent period. Next, the facet that holds importance is assignment of future receivable rents along with a guarantee from third party.

Another imperative thing is that the bank must ensure getting a mortgage of at least 1.5 times the value of the loan taken on any immovable property. There are the cases when banks can also ask for a mortgage on any liquid asset including national savings certificate, kisan vikas patra or other similar schemes. It includes:

• Non availability of immovable property
• Low value of the rented out property
• Undesirability of the landlord to sell out the property.

However, these kinds of loans require the landlord to furnish a mortgage, which certainly works out best than availing a personal loan. Now, let’s take another case in which the landlords have already promised their piece of property. This is one of the underlying reasons encouraging most landlords to purchase properties through housing loans, whose repayment go up for 10-20 years. To have a fresh loan against the future receivable for the same rented out property, the landlords require seeking out for some other security to offer bank. However, it is much better for a person to avoid buying another loan under such a case. In case, the situation is unavoidable, he person could go with the loan against future rent receivable.

News Published Under:   Real Estate Trends |

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