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Rent Receivables Loan

Rent receivables loan

Rent Receivables Loan

Rent receivable loans can be used by a borrower to manage gaps in the cashflow and/ or as a general purpose term loan for investment in real estate or business purpose or any other use. Owners of residential buildings and commercial properties in rural/semi-urban/urban/ metro areas, which are to be rented or already rented to MNCs/ Banks/ Large and medium size corporates are eligible for the rent receivable loan scheme. Most of the Banks in India offer rent receivable loan schemes, in this article, we look at the an overview of the scheme including eligibility criteria, terms and more.


Property owners having rent fetching property in Metro/ Urban Area/ Semi-Urban areas/ Rural Areas can avail rent receivable loan for a wide range of purposes like business expansion, education expense, marriage expense, renovation or construction expense, purchase of real estate or any other purpose.

The property from which rent is being received must have been let out  or leased under a registered lease deed or leave & license agreement. The tenant can be a Public Sector Undertakings or Govternment Body or Semi-Government Body or State Government or reputed corporate houses, Banks, Financial Institutions, Insurance Companies, Multinational Companies, Warehouses, large retail outlets, person engaged in trade, commerce & business, Professionals, self Employed, High Net worth Individuals, Salaried Class, Proprietary firms, Partnership firm, companies, etc.

Loan Amount

Loan of upto Rs.10 crores can be provided against rent receivables with a maximum of 120 monthly installments or residual lease tenure, whichever is less. The maximum loan amount provided is also constrained to 85% of the market value of the property. The net rent minus TDS and other taxes or dues will be deducted while calculating the total loan amount. Further, loan is provided in the following proportion:

Lease Period

Loan as a Proportion of the future rent receivables.

Up to 3 years


3 years to 5 years


5 years to 7 years


7 years to 10 years


Collateral Security

The rent yielding property must be provided as collateral security to the bank by providing first charge by way of equitable mortgage. In case equitable mortgage is not possible on the rent yielding property for any reason, then some of other property with a market value not less than 150% of the proposed loan must be provided.

To obtain a rent receivable loan, visit