Smart Funding, Secure Rentals, Flexible Finance
Lease Rental Discounting (LRD) is a loan facility offered against rental income from leased or rented commercial properties. By pledging your rental receipts from reliable tenants, you can unlock funds for business expansion, working capital, debt consolidation, or personal needs—while continuing to earn rental income.
Features of Lease Rental Discounting (LRD)
- Loan is sanctioned against rental income from leased commercial property.
- Tenants’ rent acts as security/collateral for repayment.
- Long repayment tenure, generally up to the period of the lease.
- Loan amount usually ranges from 50–75% of the discounted value of future rentals.
- Flexible usage – for business, expansion, or personal financial needs.
Loan Top-Up Eligibility
- Property owners with a valid rental agreement and steady rental income.
- Commercial properties leased to reputed tenants (MNCs, banks, corporates, government bodies, etc.).
- Individuals, partnership firms, and companies are eligible.
- Clean property title and proper documentation of lease/rent agreement.
- Good credit history and repayment track record.
Documents required to apply for Loan Top up
- KYC documents – Identity and Address proof.
- Registered lease/rent agreement with tenant.
- Bank statements showing rent credits (generally last 6–12 months).
- Property documents – title deed, NOC, approvals, ownership proof.
- Financial documents – ITRs, salary slips or business financials.
- Any additional documents as required by the lender.
Fees and Charges for Loan top up
- Processing fee (generally 0.5% – 1% of loan amount).
- Legal and property valuation charges.
- Prepayment/foreclosure charges (as per lender policy).
- Interest rates depend on property value, tenant profile, and applicant’s creditworthiness.
- Applicable GST and statutory charges.
Faq's for Loan Top up
How is the loan amount decided in LRD?
It is based on the net present value (NPV) of future rentals receivable during the lease period, discounted as per the lender’s rate.
Do I lose my rental income after availing the loan?
No, your rental income continues, but rent is routed directly to the lender to repay EMIs.
Which types of properties are eligible?
Commercial properties like offices, retail shops, malls, and warehouses with long-term leases to reputed tenants are eligible.
Can individuals use LRD for personal expenses?
Yes, the loan amount can be used for both business and personal financial needs.
What happens if the tenant vacates the property?
If the tenant leaves before lease expiry, you need to ensure a new tenant or make alternative repayment arrangements as per lender’s policy.