|Union Bank of India
|Rate of Interest & Repayment
|· Rate of interest:
(rate of interest is subject to revision from time to time)
· Inclusive of additional Credit Risk Premium.
· (rate of interest is subject to revision from time to time)
· Repayment Period – Loan is repayable upto 120 months by using the entire net rent amount (Gross Rent – proportionate advance rent received – property tax – TDS – Other statutory dues of lessor) within the unexpired period of lease or within 120 months, whichever is earlier.
|a. Upto Rs.1.00 Lacs – On Clean basis
b. Above Rs.1.00 Lacs – EM of property, in respect of which rent is charged to the loan. In case the security of the said property is not available, EM of alternate property is permitted. However, the property should have Clear & marketable title and there should not be any litigation of any nature outstanding on the property, it should be held as free hold and The value of the alternate property is not less than 150% of the loan amount. Other chargeable securities such as NSCs, Bank own deposit, LIC policies etc. having value sufficient to cover the loan amount may also be obtained.
|Composite /loan Limit
|Maximum limit per party that can be sanctioned under the scheme should be calculated considering net rent amount available to the Bank upto maximum 120 months subject to:
· 75% of the net rental income for residual/effective lease period i.e. Gross Rentals less (Advance rent received + property tax + TDS + Other statutory dues of lessor)
· 75% of the value of property
· Loan that can be recovered / repaid from applicable rent receivables (Refer to Point on repayment)
whichever is less
(Securitization of lease rentals and repayment thereof beyond the unexpired lease period upto 120 months may also be considered as per the terms of the scheme.)