What is the rent paid by banks for commercial spaces

Before I explain what is the rent paid by banks for commercial spaces, let me tell you how you can rent out your property to a bank. You can use online methods like real estate portals or you can also use offline modes of advertising like newspapers. If you want to rent out your property to the bank, then you can visit the bank and file an application for the same. The bank's officials will then check whether they have the requirement of a branch or ATM in that particular location. After reviewing the application, if the location and other factors are found suitable, they will let you know. How much do banks pay for rent Now, coming back to your question about how much rent do banks pay to commercial spaces, then let me tell you that banks generally pay rent for an ATM or bank branch similar to the pricing of commercial rates of the locality. As far as I know, the ATM space is available at the cost of Rs. 7.5-9 lakh based upon the cities and location. In Mumbai, it is available at around Rs. 9,00,000 while In Delhi-NCR it costs around Rs. 8,00,000 lakh. Moreover, it costs around Rs 7,50,000 in Hyderabad, Bangalore, and Chennai but when it comes to returning, a bank is giving at least Rs. 15K per month to the ATM space owner. How to give your property on rent for ATM to a bank Alternatively, you can post your property on NoBroker and earn great income monthly. Post a free property ad on NoBroker now

Looks like you are also eager to know about the rent bank pays to you for using your space. I was also concerned about this thing before renting out my space. But don’t worry, banks pay a decent amount and you will definitely reap the benefits if you qualify. Let me acquaint you with the bank rent per square foot. Post your property on NoBroker today and get tenants in no time. Need help finding the right tenant for your property? Check out NoBroker Owner Plans here

What is a bank rent rate per square foot?

I totally agree with Renu and Vaishali’s answer. The rent that banks provide ranges from Rs 50 per square foot to Rs 200 per square foot. But, this may change depending on the current pricing, where the bank is located in an urban or rural area and the daily possible volume of transactions. However, if the bank provides the option of a power source, the bank must pay a separate fee for it. If you rent your property to a bank, that bank must pay additional rent for the new bank and ATM located there.

What is the bank rent per month?

Rent is influenced by the region and the type of construction. You can refer to the following average cost bank pays as rent. For Bank Installation:

• In metro areas: Rs.20,000 to 6 lakh rupees
• In rural areas: Rs.5000 to 40,000 in rural areas 

For ATM installation:

• In metro areas: Rs.6000 to 25 lakh rupees
• In rural areas: Rs.2000 to 6000 in rural areas

Now you are aware of the bank rent per square foot. Read More: How to rent a suitable commercial space for bank and ATM installation? How to rent your shop to a bank ATM?

Hi, My brother has a space rented out to a bank. So, I know that methods for calculating rent for commercial property may differ slightly from those used for residential property. To accurately determine the commercial property rent and the current variables that may impact rentals you need to quantum limit, security deposit, rate of interest and many more aspects. So, if you want to bank rent your property I can help you by telling you about all of the aspects along with your eligibility. Post your property on NoBroker today and get tenants in no time. Need help finding the right tenant for your property? Check out NoBroker Owner Plans here

How much rent bank pay for premises?

Quantum of Limit	Maximum limit per party that can be sanctioned under the scheme should be calculated considering the net rent amount available to the Bank upto maximum of 120 months subject to 75% of the net rental income for the residual/effective lease period i.e.  Gross Rentals less  (Advance rent received + property tax + TDS + Other statutory dues of lessor) OR 75% of the value of property OR Loan that can be recovered/repaid from applicable rent receivables  (Refer to Point on repayment)   whichever is less
Security	a. Upto Rs.1.00 Lacs - On Clean basis
	b. Above Rs.1.00 Lacs - EMI of property, in respect of which rent is charged to the loan. If the security of the said property is unavailable, EM of alternate property is permitted. However, the property should have a Clear & marketable title and there should not be any litigation of any nature outstanding on the property, it should be held as freehold and  The value of the alternate property is not less than 150% of the loan amount. Other chargeable securities such as NSCs, Bank own deposits, LIC policies etc. having a value sufficient to cover the loan amount may also be obtained. Repayment Period - The loan is repayable upto 120 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. Moratorium period: No moratorium is allowed. Repayment will start from the next month of disbursement.

Bank branch rental rates of interest

Category	Rate of interest
Landlords of our Branch/Offices premises (Including residential flat/houses leased to our Bank.)	MCLR + 2.00%
Owner of property (Commercial/ Residential) who has rented the same to Public Sector Banks, Public Sector Undertakings, Post Office & Government Departments.
Other than the above	As detailed below

To understand how much bank pay rent for branch, you should also know the period for which the CRE and Non-CRE loan is provided. Remember that rate of interest is subject to revision from time to time.

Period	CRE loan	Non-CRE loan
Up to 3 Years	MCLR + 4.90%	MCLR + 3.90%
Above 3 Years	MCLR + 5.15%	MCLR + 4.15%

So if you want to bank rent your property, you know how much returns you will get. Read More: How to rent a suitable commercial space for bank and ATM installation? How to rent your shop to a bank ATM?

The majority of commercial property owners today choose to learn how to rent out commercial property to Banks and Non-Banking Financial Companies (NBFC) as a hassle-free rental alternative. An increasing trend in commercial real estate (CRE) is renting out commercial property to Banks and NBFCs for the installation of ATMs.

How to approach banks to provide space for bank branch?

• You can propose renting out your property to the bank of your choice. You can even go to the bank, to speak with a manager or customer support agent in person.
• There are many banks with toll-free customer support numbers. Use the helpline number to ask questions about how to rent out my property to a bank. 
• A website is another method for renting out your property to a bank. Banks usually post advertisements for free space on their websites. Simply keep monitoring the bank's website; you will eventually see an advertisement. 

How much Bank pay rent for Branch?

The rent that banks provide ranges from Rs 60 per square foot to Rs 200 per square foot. However, this might vary depending on the current market rates, whether the branch is located in an urban or rural area and the daily possible transaction volume. My friend Satish recently got an ATM installed on his property. He informed me about how much rent does Bank pays. A minimum of Rs 15,000 to Rs 25,000 can be made from NBFCs that install white-label ATMs. There won't be any monthly rental income if you choose a franchise ATM system. Avail NoBroker’s Commercial Owner’s Plans and save thousands on brokerage The quantity of daily transactions will determine the income generated. Franchise ATM dealers receive Rs 15 for each cash withdrawal and Rs 5 for each non-financial transaction. For instance, if there are 200 transactions per day, including 150 withdrawals and 50 non-financial transactions, the total profit is Rs 2,500. Taking into account all expenses, the landowner can generate at least Rs 50,000 to Rs 60,000 per month. I hope this will help you regarding how to rent out commercial property to Bank. Post your commercial property for rent here and let tenants find you Read More: How to give my property on rent to an ATM? How to rent a suitable commercial space for bank and ATM installation?