Lease Rental Discounting (LRD) is a loan (term loan) offered by banks and housing finance companies/NBFC's against the rental receipts derived from lease contracts. These lease contracts are normally long term in nature and with reputed corporate. If you own a commercial property and have given it on lease/rent to a corporate you can borrow money against this cash flow.
In this case the Lease Rental Discounting (LRD) product would perfectly suit your need. This product is only applicable for fully constructed properties (either commercial or residential) and most lenders prefer only large corporate as the tenants in the lease. The maximum amount of loan that can be availed depends upon both the value of the property as well as the amount of the rent being received.
Typically the lenders restrict their sanction 50% - 70% of the property value (similar to loan against property). At the same time the lenders ensure that the EMI payment on the Lease Rental Discounted loan does not go beyond 60% - 70% of the rent being received on the property. LRD can be provided for any personal requirements of the customer like marriage, child education, business, purchase of property without mortgage, improvement of property and medical treatment etc.
Increments in the Lease rentals over a period of time are also considered while calculating the eligibility. Our team would guide u throughout the process and help u meet your financial needs.
