Loan Against Rent

Get Attractive Loans Against The Rental Income Of Your Property

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A loan offered by banks keeping the future rent of an owned property as security. This loan can be availed by anyone who owns any kind of property that has been let out on a commercial basis, though banks might have further terms and conditions that would define which customer would actually be eligible for availing the loan.

Loan against Rent Receivables is a loan that can be used in lieu of a Personal Loan for improving the conditions of the property in question, taking up new projects, repair/renovation, and expenses pertaining to education, marriage, or even helping out in business activity. There are virtually no limitations on how the sanctioned loan amount can be utilized.

Eligibility for availing a Loan against Rent Receivables

  • Property should have been already let out and should be earning rent.
  • Property is built according to a plan approved by the local government authorities.
  • Property thus rented out has a confirmed rental or lease agreement between the owner and the tenant(s).
  • The owner and the tenant(s) are creditworthy as per the standards of the bank.

Apart from the above basic criteria, depending on individual banks, further details might be added to the eligibility conditions.

Here is the checklist of the documents required to apply for a Loan Against Rent Receivables:

  • Loan application form.
  • Photograph.
  • Identity proof.
  • Residence proof.
  • Educational qualifications certificate, latest 3 months’ salary slip, and/or proof of business existence.
  • Form 16/ITR or latest 3 years’ Income Tax returns or business profile.
  • Latest 6 months’ bank statement or last 3 years profit/loss and balance sheet.
  • Processing fee cheque.
  • Property related documents.
  • Title of ownership of property.
  • Approved sanction/building plan.


Commercial properties like shops and offices are accepted as properties for availing this loan.

It is normally possible to make a prepayment for this loan and this can be done only after 6 months. Most banks do charge a fee for a prepayment.

One needs to submit a written personally to the bank to foreclose a loan against receivable account.

EMI stands for Equated Monthly Instalment wherein you repay a loan taken in equal instalments for an agreed period.