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Lease Rent Discounting

Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from lease contracts with corporate tenants. The loan is provided to the lessor based on the discounted value of the rentals and the underlying property value.LRD is typically offered against commercial property.

Rent receipts are payable by the tenant directly to an escrow account with the lending bank.Rental income is credited in this account and EMI is deducted of it.

The underlying tenanted property, which may be commercial property or commercial property will be taken as collateral. No plot, self construction or under construction properties will be allowed. Bank also see that future rental from the property resecured .

Product Features

  • Max Loan tenure - Duration of lease left.
  • Max Loan amount - 70 to 75% of net rental divided by per lakh emi of the tenure left , subject to 60% of market value .
  • No income tax benefit .
  • Loan foreclosure penalty - Means paying off the complete loan at one go.Most of the bank charges 2 to 3% of principal outstanding as penalty .
  • Part payment - Means paying some part of loan.Most banks don't charge any penalty
  • Co-applicant - Most of the banks ask for co-applicant .Co-applicant in case of
  • Individual - spouse,parents
  • Director - spouse , parents , pvt ltd company , other directors .
  • Partner - spouse , parents , partners.

If you are interested in knowing more about Lease Rent Discounting or wanted to apply for the LRD, please contact us at +91-011-43715061 or