Lease Rental Discounting
Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rentals of the property and its current market value.
Features of Lease Rental Discounting
- Collateral: Residential and commercial property under lease
- Property credentials: Clear title, no existing borrowings on the property, lease agreement should be over 6 months old at the time of application
- Tenure: Up to 12 years
- Maximum loan amount: Rs 150 crore (not more than 80 % of the property value)
- Benefits: Attractive interest rates, loan transfer from other institutions along with top up facility, faster processing