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Union Rent

1. Eligibility • Landlords of our Branch/Offices premises (Including residential flat/houses leased to our Bank.)
• Owner of property (Commercial/Residential) who have rented the same to Public Sector Banks, Public Sector Undertakings, Post Office & Government Departments.
• Owner of property (Commercial /residential/ IT Parks/Malls/properties in Industrial area/ SEZ) who have rented the same to other reputed companies/MNCs/ Institutions/ Private Sector Banks etc.
2. Purpose • Loan can be sanctioned for short to long term needs or for any other requirements.
• However, finance for the purposes/activities prohibited in terms of Bank's Lending Policy and/or by the RBI from time to time, shall not be considered.
3. Quantum of Finance 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 Rentalsless (Advance rent received + property tax + TDS + Other statutory dues of lessor)
• 75% of the value of property
• Loan (at applicable rate of interest & stipulated tenure of loan) that can be recovered / repaid from applicable rent receivables
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.]
4. Processing Charges i) Up to Rs 5 crore: 0.50% + GST
ii) Above Rs 5 crore & up to Rs 50 crore: 0.25 % + GST
iii) Above Rs 50 crore: 0.50% + GST
5. Security/Guarantee a. Upto Rs.1.00 Lacs -On Clean basis
b. Above Rs.1.00 Lacs -Mortgage of property, in respect of which rent is charged to the loan. In case the security of the saidproperty is not available, Mortgage of alternate property is permitted. However, It should be ensured that the property:
• Have clear & marketable title and there should not be any litigation of any nature outstanding on the property.
• Should be held as free hold and
• The value of the alternate property is not less than 150% of the loan amount.
c. Other chargeable securities such as NSCs, Bank own deposit, LIC policies etc. having value sufficient to cover the loan amount may also be obtained.
d. Residual age of the building should be at least 5 years more than tenure of loan
6. Moratorium No moratorium is allowed. Repayment will start from the next month of disbursement.
7. Repayment Loan is repayable upto120 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.

• For more details, Please contact our nearest branch.