How to Rent Your Space for ATM Installation | SkillsAndTech

How to Rent Your Space for ATM Installation | SkillsAndTech

Hello Friends, Today we’ll discuss that if you have a commercial property then you have a good chance to get good returns on your investment by renting out your property to banks for ATM installation.

As we know, with a growing population, the requirement for ATMs across urban centers is increasing. However, our Government is promoting online payment or cashless India after a big pandemic COVID 19. But, till now there are many of the people don’t trust on online payment mode due to lack of education or technology. Due to this, there are so many places where ATM is needed.

So, if you think that there is no any bank ATM in your location, you have to travel a long distance to get the cash from ATM. Then you can offer your space on rent for ATM installation. Here is a step-by-step guide for ATM Installation.

Advantage for Rent a Space for ATM

  1. Good option for earning fixed monthly income from rent your space to bank ATM.
  2. Right business opportunity for you to earn upto 5X more.
  3. Zero Capital Investment.
  4. Simply pay minimal refundable deposit to Start you business Associated with the reliable brands.

ATM installation process

There are some general guidelines for applying for an ATM set-up on commercial property are listed below.

  • Fill an application in a bank or Non-Banking Financial Company (NBFC) for ATM installation.
  • The application should comprise complete details of the property such as area, locality, nearby landmarks, etc.
  • The institution will review the proposal and will identify the demand and footfall in the area and accordingly process the application. Typically, banks prefer freehold properties that do not have any mortgages or encumbrances
  • On the approval of the application, the applicant has to submit any other required details in the standard prescribed form
  • The landlord has to also provide space for a server room and dish facility for network connectivity
  • The institution will enter into a lease agreement with you pertaining to the property.

The rent offered by banks varies between Rs 60 per sq ft and Rs 200 per sq ft. However, this depends on the prevailing market rates, whether the ATM is situated in an urban or a rural areas and the number of potential transactions per day.

Select the leasing model

There are two types of ATM leasing models- White Label ATM and Franchise ATM.

White Label ATM

White label ATMs are not owned by any bank. They are the property of Non-Banking Financial Companies (NBFCs). In 2011, the Reserve Bank of India (RBI) permitted the non-bank entities incorporated in India under the Companies Act to open White Label ATMs. These non-banking corporations sign a ‘Service Level Agreement’ with a sponsor bank and a network provider that affirms cash flow in the ATMs. Customers of any bank can use these ATMs, but they will have to pay a fee for using the service. All transactions through these ATMs are chargeable.

Franchise ATM

Another way for using your commercial space is by taking an ATM franchise. This model has been launched by Tata Communications Payment Solutions Limited (TCPSL), and HITACHI MONEY SPOT ATM in alliance with Franchise India. However, in the case of Franchise ATMs, areas with high popularity and footfall are more preferred.

How Much Will You Earn?

The monthly rent will be minimum Rs. 35,000 and maximum Rs. 80,000 depends upon the prime location. The location plays the main role here to decide the rental income. But Banks and ATM’s rental income is mostly 5 times more than the normal rental income.

Minimum Space Required

The minimum space required for ATM installation is 40 sqft to 100 Sqft and for banks is 1200 Sqft to 4000 Sqft. The ATM installation or Bank rental can be done on shops as well. If you have plot or shops in any commercial or sometimes residential area,

How to Rent Your Space for ATM Installation ?

To rent your space for ATM Installation in your commercial space, there is a step by step guided video is given below: Watch this video to get step by step guide:

Letter to Bank, Offering Space for ATM Installation:

There is a letter format for offering space for ATM Installation, which is given below:

Date:__________

To,

The Manager

State Bank of India

Dhanbad Branch

(Branch Address)

Sub: Proposal offering premises for ATM.

Dear Sir/Madam,

This is to inform you that I have a good commercial space at Hirapur Road(write your location). In this location available of many corporate office, business house/ stores and also daily business place but there is no ATM Machine for cash withdrawal of any Bank within 1.5 km in this location. So, I would like to offer my commercial premises on lease for installation of ATM Machine of your esteemed bank.

The details of the premises are given hereunder:

  1. Full Address of premises:………………………..
  2. Distance from main road:…………………………
  3. Floor Area_____ sqft.
  4. Carpet Area______sqft.
  5. Age of Premises (Year of construction):…………………
  6. Proposed lease rental charges per month:………………..
  7. Interest free Security Deposit:………………..

Other terms & condition

  1. Electricity bill to be paid by the bank at actual;
  2. Municipal/corporation taxes to be paid by me;
  3. Lease deed registration charges to be paid equally by the parties;
  4. Yearly maintenance and any repair will be carried out by me;
  5. Rent is to be paid in advance by 5th day of every month;
  6. Notice period for termination of the lease deed is 2 months.

In case you are interested in the above said premises, then you may contact me on +91-91XXXXXX12 or emai id …………. I am the rightful owner of the said premises. You may come for a visit to inspect the premises at any time during the between 10am to 6 pm.

I am very cooperative and considerate person. I look forward to a long term business relationship with your bank.

Thanking You.

Yours faithfully,

(Name of Person)

Encl: Photographs of Premises.

Frequently Asked Question (FAQ)

Q. Is rent a space for ATM  a good business opportunity?

Ans: Yes, because only 22 ATMs available per lac population,  so there is a high demand for ATMs in India. If you are looking for a business opportunity that gives you a good return on investment with minimum investments, then Rent your space for ATM  is a good option for you to consider with SBI, Hdfc, PNB, Bank of Baroda, Axis etc.

Q. Is there any Agreement happens between Lessee and Banker for the space for ATM on rent?

Ans: Yes, there is a minimum agreement period of 2 year.

Q. How much can I earn by giving space rent for ATM?

Ans: You may earn fixed monthly rent from you space for ATM. It is depend on location area, as per your location Space for Rent of ATM is considered. As you can earn minimum rent of Rs 12 000 to Rs 20,000 per month by giving space rent for ATM.

Q. Whom do I contact to  Bank for rent a space for ATM ?

Ans: Firstly, decide which Bank ATM machine you want to install in your space. According to that you have to contact with respective Bank. For Contact you have to write a letter as mention in the above format.   

error: Content is protected !!