Suppose you have a commercial property that needs repairs or painting etc. For this you need money but you don’t have that either. You can take a mortgage (loan without guarantee) by pledging the property but you do not want to do this. In such a situation, another thing you can do is to take a loan against rental income. Very few people know about it. If you have a commercial property from which you expect to earn rent (Loan on renting properties), banks can give you a loan.
Many banks give you this loan. Although this loan is available on commercial property, many banks also give you loan against rental income on residential property. Let us know what conditions have to be fulfilled to take this loan (loan against rental income)?
What conditions must be met?
The property has been let out in the past and is likely to be let out in the future (loan against rental income).
Construction on the property should be done with the permission of the local corporation authority.
Your financial condition should be strong and you can repay the loan.
There should be a solid rent agreement between the property owner and the tenant.
What documents will be required?
An application form which is properly filled. (loan application process)
Passport size photo.
Photocopy of identity card. This includes PAN card, Voter ID and Aadhar card.
Proof of residence, such as electricity or telephone bill.
A copy of occupation or income proof, if required.
Income Tax Returns (ITR File) for last 3 years.
All types of documents related to property.
rental agreement.
What is the benefit?
The loan gets approved very quickly and easily. Cheaper interest rates compared to personal loans. Repayment period 10-15 years (loan repayment). Loan amount is sanctioned for 70-90 percent of the market value of the property (How to get the loan). You start getting this loan at a base interest rate of 3.85 percent.
