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RENT PLUS
Purpose Finance against assignment of future rentals to owners of residential buildings / commercial property to meet their liquidity mis-match.
Eligible customers Owners of residential buildings and commercial properties which are to be rented or already rented to MNCs / Banks / large & Medium size Corporates.
(For all other type of lessees the Branch In-Charge is vested with the discretion to consider the case.)
Applicability
[coverage]
Metro/urban/ semi-urban/rural centre. CMC may identify individual branches to handle loans irrespective of loan amount & constitution of owner [i.e individual, proprietor, partnership, company etc.]
Quantum of finance Min. & Max. Loan Amount Minimum: Tk. 500,000/- (Five Lacs)
Maximum: Tk. 5,00,00,000/- (Five Crore)
Subject to:
85% of the gross Rental value for 12 months less property tax, advance deposit and any other statutory liability or 60% of the market value of the property (as per Bank’s approved valuer’s latest valuation report or as per branch’s valuation) whichever is less.
Margin 15%
Nature of Facility Term Loan
Processing Fees 1% of loan amount. The Branch In-Charge will have discretion to reduce the processing fees by up to 50% :
i)where bulk business is involved and a check off facility from a reputable employer is available.
ii) during short period promotional drives.
iii) considering the value of the customer.
Repayment Period & Mode Maximum of 7 years or residual lease period whichever is lower.
EMI. Where advance rent is received the Equated Instalment [EI] to be for same frequency at which rent is received & EI to be front ended i.e. recovered at beginning of the period.
Prepayment Charge 1% of the loan amount prepaid.
Primary Security Clean. Assignment of rental receivable and recording of power of attorney with the lessee must be done.
Collateral Security -First charge on building against the rentals of which the loan is sanctioned OR any other acceptable property.
-Market value of the property to be atleast 120% of the loan amount
-Personal guarantee of partners/ directors in case of partnership firm / company.
Inspection Half yearly by FO and yearly by MOD/BM
Insurance To cover value of assets charged to the Bank.
Documentation Standard documents for Rent Plus loan.
Rate of Interest Loans may be given both on a fixed or a floating rate basis, as per interest rate prevailing from time to time. Branch Manager may have discretion to reduce the interest rate by 1% p.a.
Discretionary Powers To be exercised as per the Delegation of Powers.
Credit Customer may default in repaying the loan A minimum upfront margin of 30% is being maintained. The House/ flat financed out of Bank finance is registered mortgaged in favour of SBI with the respective sub-registrar office. In case of default the House can be seized and auctioned for recovery.
Interest Rate Interest rate fluctuations Floating Interest rates linked with prime lending rates. In case of fixed interest rate margin over PLR is kept high and as such the NIM is high ab initio.

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