Should own commercial or residential property
Property has been rented out to individuals, banks, MNCs, PSUs, Government Institutions including landlords of IOB's branch/office premises and officers' quarters
Should have a firm lease agreement for letting out/leasing of your property
The rent receivable has not been charged to any other loan
Owner and the individual/establishment to whom the property is rented out, are credit-worthy
Loan amount
Maximum of 75% of the receivable rent for the un expired period of lease or tenancy after deductions for TDS and the advance rent received.
Rate of interest : Please click Retail credit interest rates
Repayment
Repayable in equated monthly installments of 120 months (maximum). But the repayment period should not exceed the number of months taken into account for arriving at the loan amount.
Security
For loans upto Rs. 2 lakh, future rent receivable is charged to the Bank
For loans above Rs. 2 lakh, your leased/let out property should be mortgaged in addition to charging the rent receivable
In the event of inability to mortgage this property, any other immovable property with a value of one and half times the loan amount can be mortgaged, or
The NSC, KVP, IVP, LIC (surrender value) equivalent to the loan should be offered as security
Power of attorney is to be executed by the lessor infavour of the bank to receive the rent directly from the lessee.
Documents
An application form
Proof of income
Copy of the lease deeds of the property
Assessment copy of Income Tax /Wealth Tax
Copy of approved building plan
If you have an existing loan on the property, certificate of the balance from the financing institution should be produced.
Copy of title deeds of the property offered as security.
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