We have always tried to give our Clients the best services in the Industry and kept them well informed of what is going on in the market.
We are sure you must be familiar with the term “Rent Discounting”, this is a New Product which has been very active of late in the market.
The product is aimed at providing finance to property owners who are having fixed Rent receivables. These receivables can be clubbed into an upfront payment that can be discounted at very attractive rates. These property owners can then utilize these funds for generating further assets which can yield higher returns for themselves. Further, the funds could also be deployed for expansion of their business activities. This will give a source to accelerate the rotation of their funds.
Purpose :
Finance can be sanctioned for any productive purpose including meeting business and personal needs.
Who can avail?
Owner of the property who have rented out the same to reputed companies (Commercial, Industrial, Software, Multinational Companies), Banks, Financial Institutions, Insurance Companies as commercial / residential accommodation on lease basis.
Extent of Finance :
75 % to 85 % of the total net future rent receivables. (based on the tenure of the lease agreement)
Eligibility :
The actual discounted amount will be determined after taking into account factors like rent receivable during the unexpired period of tenancy, tax deducted at source and other outgoings such as property tax, annual repair, maintenance etc.
Rate of Interest :
12.50 % p.a - Negotiable (on annual reducing balance).
Tenure :
Residual tenure of lease or 60 months whichever is earlier, however in long-term lease for banks and MNC’s the loan tenure can be increased accordingly.
Service Charges :
One time up-front fees :- 1 to 2 % of the finance amount.
Security :
Assignment of Lease Rentals.
Original title deed of the property.
Assignment of LIP, NSC etc., if found necessary.
Checklist for Lease Rental :
Photo (Two).
Residence Proof.
Bank Pass Book for last 1 year.
Income Tax Return for last three years.
Profit & Loss Account and Balance Sheet for last three years.
Company Profile and last track record of the tenant.
Salary Certificate in Employed cases.
Property Documents :
Original Lease Agreement / Sub-Lease Agreement.
Original Registration Receipt of Lease Agreement /Sub-Lease Agreement, if available.
Original Sale Deed in the name of the Owner in respect of the property leased.
Original Registration Receipt for Registration of the Sale Deed.
Copy of Latest Property Tax / Electricity Bill payment receipt.
All past chain documents in respect of the property leased.
Details of monthly out-goings like Maintenance Charges, Society Charges, Municipal Tax, Property Tax and any other charges.
Players :
We facilitate this service through Foreign and Indian Banks, Financial Institutions and Companies.
Please note that any other document, if required for Legal and Technical scrutiny shall be demanded after verifying the above mentioned documents.
