Document background
The Loan On Rental Agreement is a specialized legal instrument used in Pakistan when there is a need to combine financing with property rental arrangements. This document is particularly useful in situations where a property owner provides both accommodation and financing to a tenant-borrower, or when a financial institution structures a combined loan and rental package. The agreement must comply with Pakistani financial and property laws, including the Contract Act 1872 and Transfer of Property Act 1882. It includes detailed terms for both the loan component (such as principal amount, interest rates, and repayment schedule) and the rental aspect (including lease term, rent amount, and property maintenance obligations). This type of agreement is commonly used in both residential and commercial contexts, and can be adapted for conventional or Islamic financing structures.
