The Hindu Business Line : Karnataka Bank scheme for property owners

KARNATAKA Bank Ltd has launched its credit product, "KBL Lease & Encash", to meet credit requirements of property owners who have rented their premises against future rent receivables.

According to a press release from the bank, the scheme is intended to meet the purposes such as repair, renovation, and investment to the satisfaction of the sanctioning authority.

Limit of advance is 80 per cent of the net rent receivable subject to maximum of 60 months or residual lease period, whichever is less, provided the equal monthly instalments and interest/equated monthly instalments of the proposed loan do not exceed net monthly rent receivables.

The security for the loan is mortgage of property not less than the loan amount, or collateral of liquid securities like the bank's deposits, National Savings Certificates, Kisan Vikas Patra, and surrender value of insurance policies of companies permitted by the Insurance Regulatory and Development Authority (IRDA) equivalent to not less than 50 per cent of the loan amount.

The rate of interest is 12 per cent.

Loan is repayable in equal/equated monthly instalments out of rent receipt over a maximum period of 60 months, the release added.

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