SBI - Rent Plus

RENT PLUS

Name of scheme : Rent Plus

Nature of facility :Term Loan

Period of repayment:

7 years or the residual lease period, whichever is lower.

Eligible customer:

Owners of residential buildings and commercial properties in Rural/Semi-urban/Urban/Metro areas which are to be rented or already rented to MNCs/ Banks/ Large & medium size corporate.

Purpose: To meet liquidity mis-match of the applicants.


Quantum of finance
Min. Rs. 50,000.00
Max. Rs. 5 crore for properties located at Non-Metro Centres and Rs. 7.50 crores for properties located at Metro Centres. There will be no differentiation on the basis of constitution of the applicant.


Margin :40%

Repayment: Equated Monthly Installments of 7 years or residual lease period.

Prepayment : 1% of the loan amount prepaid.

Interest :

1.00% above SBAR. i.e.14.00% p.a. for loans upto Rs.7.50 crores in Metro centres and upto Rs.5.00 crores in non-metro centres Floating, In other cases 1.25% above SBAR i.e.14.25% p.a. Floating.

Primary Security :
Assignment of receivables and recording of power attorney with the lessee is a must.

Collateral Security:
i) First charge on buildings against the rentals of which the loan would be sanctioned (value of the property should be double the amount of loan) or any other acceptable property of equal value.

ii) Equitable Mortgage of immovable property by deposit of titledeed.

iii) In case of partnership firm, personal guarantee of the partners of the building. In case of company personal guarantee of directors to be obtained.

Insurance :The amount of insurance should cover the value of assets charged to the Bank.

Applicability :Metro / Urban / Semi-urban/ Rural centers.

Processing charges and cost of valuation

2% of loan amount, subject to a maximum amount of Rs.1,00,000/=, to be paid upfront as processing charges. The charges for valuation of the property are to be borne by the applicant.

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