Lease Rental Discounting (LRD) Loan ( β‚Ή25 Lacs to 100 cr)

Lease Rental Discounting (LRD) Loan in India (Loan Starting from Rs. 25 lacs to Rs. 100 crores)

Lease rental discounting LRD loan, is comparatively easy way of obtaining finance from banks & NBFCs. This loan is sanctioned based upon the future monthly rental income over a period of time and market valuation the property offered as collateral. It is the consideration between the borrower who owns the premises, the tenant who has taken the said premises on lease and the bank or financial institution which is willing to finance against rent. SMEFundings.com gives you easy access to LRD loan through highly simplified online application form, online documentation & easy loan process.

  1. Residential Property
  2. Commercial Property (Office / Shop / Showroom / Other)
  3. Industrial Property
  4. Open Plots
  5. Warehouse
  6. Cold Storage
  7. School
  8. Hotel (Hotel Chains / OYO Rooms etc.)
  9. Hospitals

Borrower submits necessary documents to lender, which basically include KYC, rental agreement, financial documents & property documents. Lender does necessary assessment of borrower as well as of the tenant, property valuation & legal clearance. After satisfactory reports, LRD loan is sanctioned. In Lease rental discounting, the tripartiate agreement is executed between the borrower, the lender and the tenant, through which the tenant agrees to deposit future rent in the escrow account. Escrow account is the joint account between all three parties involved in the trasaction. Every month, once the loan EMI is cleared through escrow account, lender tranfers remaining amount to borrower's account.

  1. Loan is sanctioned against future rental income
  2. It is secured against property collateral.
  3. Loan in given in form of term loan or reducing Overdraft, as available.
  4. Maximum upto 95% of rental income is considered for loan eligibility.
  5. Loan to property value ratio is also between 60 % to 75%.
  6. Loan upto 15 yrs of repayment period.
  7. Flexible end use of funds by borrower.
  8. No other business income is necessary if the tenant is good.
  9. Time required for sanction & disbursement of loan is 10-20 days.

  • 3 Years Audited Financials with IT Return, Computation
  • Last 12 months bank Statements
  • Existing Loan Sanctions letters & Loan Statements, if any
  • MOA/AOA/Partnership Deed/ Registration
  • KYC of Firm & Directors/Partners
  • Property Documents
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