Barclays, a leading global financial services provider, today announced the addition of a new product to its loan against property product suite. It has added the sought after “Lease Rental Discounting” (LRD) offering suite catering to customers owning leased commercial premises. With the launch of this product, Barclays Bank offers a complete set of Loan against Property (LAP) products that will help the Bank cater to its customers’ needs in a more comprehensive manner.
As a part of its overall LAP offering, Barclays focus has been on differentiating creditworthy customers and offering them preferential treatment through the highest loan amounts and highest eligibility across the industry coupled with easy repayment options. Premium customers are eligible for loans of up to INR 10 crores on the basis of evidence of sound credit history, repayment capability and appropriate asset valuation.
Under the Lease Rental Discounting program, the loan amounts disbursed by Barclays will be a function of the customer’s monthly rental receipts, balance tenure of the lease and the value of the property among other factors. This product offering is specifically targeted at owners of prime commercial properties that are leased out to reputed lessees. The EMI (equated monthly instalment) offered to a customer is set as a percentage of the total monthly rentals being earned on the collateral. The overall loan amount will be restricted to 55% of the property’s valuation. This is a competitive customer offering with loans being offered through quick processing, subject to customer meeting the Bank’s criteria.
Suvrat Saigal, Director, Retail Banking, Barclays Corporate India said, “We are confident and bullish on the growth of the Loan against Property industry. Clearly, in order to succeed, we need to offer not only competitive products, but also the best possible service, value-added features and benefits. In a market where the basic product is similar, it is ultimately the ability to understand the customer’s need completely and structure value-adds that holds the key. The LRD product caters to prime customers allowing them to release the equity of their locked-in assets in a meaningful and productive manner. We believe that this product is exactly what we need to complete our LAP offering.”
Apart from being a key bridge in fulfilling customer needs, LRD will also enhance the credit quality of the LAP portfolio through assured repayments in the form of assigned rentals. Barclays Bank currently offers Home Loans & LAP services through Barclays Bank in five cities of Delhi, Mumbai, Hyderabad, Nelamangala and Kanchipuram. In addition, Barclays Investments & Loans India Ltd offers LAP services across its 26 branches in Mumbai, Delhi, Chennai and Bangalore.
In addition to LAP, Barclays Bank also offers Home Loans in India, wherein all individuals whether Indian residents, NRIs or PIOs can avail of a home loan of up to 85% of the property value with a loan amount ranging between Rs 15 lakhs and Rs 10 crores. The maximum tenure for the repayment of a home loan is 20 years.
Over the last few years, Barclays has already launched a number of innovative and convenient products to its Indian customers, such as the Drop Down Business installment loan, the Semi Fixed LAP product, the Overdraft option on both unsecured and secured loans, the smart budget card, India’s first Platinum debit card, Barclays Hello Money and the Barclays Premier League card.
About Barclays:
Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com
