|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.)
|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)
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.
|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.|