Rent Loan Scheme

Rental Loan Scheme
A rental loan scheme, also known as a loan against future rent receipts, is a financial product that allows property owners to borrow money against future rental income from their property.

How it works:

• Property valuation: The bank assesses the value of the property and the rental income it generates.
• Loan amount: The loan amount is generally a percentage of the expected future rental income.
• Repayment: The loan is repaid through monthly rent collected from the tenant.

Key features:

• Secured loan: The property acts as collateral.
• Repayment source: Rental income is the primary source of repayment.
• Loan amount: Varies depending on the value of the property and the rental income.
• Interest rates: Generally lower than unsecured loans due to the property as collateral.

Benefits of rental loan scheme:

• Access to funds: Provides a source of funds without selling the property.
• Regular income: Rental income can be used to repay the loan.
• Investment potential: Borrowed funds can be used for other investments.