Loan Against Rented Property Loan
Investment in real estate provides a sense of security to many. Moreover, land is limited in supply so there is always a demand for it. But it is quite an illiquid investment which you cannot get money out of your investment in a real estate property as and when you want. So does a person with a real estate property with a real estate investment always get stuck when in need for money?
No, it doesn't have to be that way. There are many assets that can be used as a source of money or funds when in need. Loan against gold or fixed deposits or even against a property is common knowledge. However, did you know if you have a property that is lent out on rent, there is a loan that you can avail against the security of those future rentals?
We understand that this kind of lending is not very popular yet and not many are aware that their properties can not only earn them rental income but can also aid them in getting a loan. Through this article of ours, we will try to shed more light on the procedures involved in getting a loan against a rent agreement, eligibility criteria and all that you need to know about availing a loan against rental agreement.
Any individual who has a residential or a commercial property that is let out for a certain sum of amount is eligible to avail a loan against the rental agreement or rent receivables. Single owners or joint owners could apply for a loan against rent receivables. However, in the case of joint ownership of a property, all co-owners will have to be co-applicants to a loan against rental agreement / rent receivables.