Lease Rental Discounting

Lease Rental Discounting (LRD) loan is a Term loan availed against the future expected rentals from a Commercial (office space) or Retail (malls/shops) property. The loan is availed by the lessor based on the discounted value of future rentals and the underlying property value.

Bank determines Eligibility for LRD based on Corporate Tenants with good credit rating, timely rental credits and long-term lease contracts. Such Loan Agreement has 3 parties: Lender (Banks / NBFCs), Lessor & Lessee. Here an Escrow account is opened by the Bank where the Lessee is supposed to directly transfer the Rental Incomes to such Escrow account managed by the Banks after such loan agreement is in force.

Borrowers can use the loan amount for personal use or invest it for business expansion. Generally, Lease period should be minimum 3 years as required by various Banks and the maximum tenure for Lease Rental Discounting can be upto 15 years. However LRDs are not provided against the Rental Income derived from Residential properties.

If you are having large amount of Rental Cash Inflows from your leasehold property, then we SCPL can help you get finance through your Secret Asset – Rental Incomes. We can arrange Loan at attractive Interest rate starting from 6.90% p.a. & onwards subject to CIBIL score. Kindly get in touch with us to know more.