Loan against rental income
Mayank
(Querist) 21 July 2014
This query is : Resolved
I have a property(perpetually leased from Government) on which I have constructed a building and rented out a part of it to a Government Institution Office and other corporate offices of repute, hence earning a decent rental income. Currently I am in need of a Loan for business so can I get this loan using the rental income as security since I am not the sole owner but just a lessee of the land(though perpetual lessee)?
Dr J C Vashista
(Expert) 22 July 2014
Contact the bankers with documents of ownership as well as lease through a local lawyer.
You can very well afford to engage a prudent and seasoned lawyer whereas this platform is not meant for afflluent persons like you, it is for social service on charitable basis.
Devajyoti Barman
(Expert) 22 July 2014
Grant of loan depends on discretion of bank which varies from bank to bank.
malipeddi jaggarao
(Expert) 22 July 2014
Many banks grant loans against future accruals. Your proposal is acceptable to the Bank prima facie. That all depends on the following:
1. What is the unexpired lease period.
2. How much loan you require.
3. What is the quantum of total rentals. Whether that is sufficient to meet the EMI of the proposed loan.
4. What is the purpose of loan.
5. Whether the lease deed contains any restrictve clauses. Whether it allows you to create mortgage in favour of the lending bank?
6. What the income of you for the last 3 years as per IT returns?
The list is not exhaustive but only indicative. You must be having bank accounts. Consult your present banker.
You are from which place?
P. Venu
(Expert) 22 July 2014
Prima facie, the property does not appear to be a lease in terms of Transfer of Property Act, but a kowl (or cowl) i.e. a conditional assignment.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 22 July 2014
Presumably lease is 99 years long period. If so u should get loan subject to restraint clause in lease-Agr n quantum of loan required.
Rajendra K Goyal
(Expert) 22 July 2014
Consult your lawyer or the Banker to clear the situation.
ajay sethi
(Expert) 22 July 2014
agree with Mr Malipeddi
T. Kalaiselvan, Advocate
(Expert) 24 July 2014
I too agree with expert Mr. Malipeddi Jagga Rao Garu's experienced opinion. You may approach the concern bank with the papers and seek their guidance and also loan.
