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Lease Rental Discounting (LRD Loan) Facility

The Lease Rental Discounting (LRD) facility, a secured debt product, is a term loan. The borrower gets this loan based on their income from the rented property. A major aspect that affects the LRD loan is the availability of rent receipts from the tenants or any other relevant proof of receiving rent. So, several other factors matter when obtaining a lease rental discounting facility.

Owing to the rise of businesses in the country, several options are available for funding in the Indian Debt Market. Lease rental discounting (LRD facility) is one such loan. Even though the rented property is a steady source of income, the loan providers are quite limited. Thus, The LRD loan has several purposes. That includes starting a new business, investing in another property, personal reasons, etc.

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Secured Debt Instruments

Secured Business Loans
Foreign Currency Funding
Working Capital Finance
Loan Against Property
Lease Rental Discounting
Builder Finance
Project Financing
Debt Syndication
Loan Against Shares

Key Features of Lease Rental Discounting

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Turns future income into Immediate Cash

interest rate

Competitive Interest Rates (7-11%)

flexible repayment

Flexible Loan Tenure

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High-Value Loans

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Convenient Repayment

Advantages of Lease Rental Discounting Facility

  1. Get all your future rental income now
  2. You can build another property against the amount you get
  3. We can arrange escrow facilities for better repayment. So there is no burden to arrange the repayment. The lender, lessee, and you can arrange the escrow
  4. Better cost of borrowing
  5. Fast fundraising process
  6. Better comfort to both borrower and lender

Characteristics of LRD Loan

1. Criteria

  1. It is a secured loan in which the rented property is the collateral.
  2. Provide loans against future expected rent.
  3. Leased property with a lease of 5 to 10 years is provided with this loan.

2. Borrowers

  1. The loan is available to salaried employees, professionals, and self-employed individuals.
  2. Firms of all types can get loans
  3. Property owners with known brands and corporate tenants are preferred borrowers. Retail also qualifies.

3. Loan Amount

  1. Loan amounts range from 20 lakhs to 1 Cr, with some organizations offering up to 10 cr.
  2. For an LRD loan, your EMI must be less than 80% of your monthly rent. 
  3. The loan amount is based on the expected rental income, but less than 80% of that amount.
  4. The loan amount being less than 70% of the property’s market value plays a role in its determination.
  5. Maximum tenure of 10-15 years but can be less.

4. Repayment of the Loan

  1. An ESCROW account was created for loan repayment.
  2. This account is for EMI and rent.
  3. Lease rental discounting interest rates are 7-11%, similar to property loans.

Lease Rental Discounting Eligibility Criteria

The eligibility criteria for the loan differ from organization to organization. However, there are certain factors as well that will affect the eligibility criteria for the loan. A few of the general parameters are listed as follows:

  • The income of the applicant should be stable.
  • Age criteria:
    1. For salaried applicants: 21 to 60
    2. For self-employed applicants: 21 to 65
  • Other liabilities that come along or that might occur in the case of loans taken by the individual or firms.

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Documents to Appy for Lease Rental Discounting

To apply for a lease rental discounting loan, you need to provide several documents to the lending institution. The documents vary from case to case, but here are some important ones:

  • A completely filled-out application form for the loan.
  • Recent photographs of the applicant.

For Salaried Individuals

  • 3 to 6 months of salary slips.
  • Income Tax Returns proof or latest Form No. 16.
  • Bank statement for the last 6 months of the salary account.

For Self-employed individuals and firms:

  • Business profile of the company.
  • Memorandum of Association (MoA)
  • Articles of Association (AOA)
  • Partnership deed
  • ITR of the company for the last 3 years
  • Profit and loss statement
  • CA-certified balance sheets

Note: The application must be signed by all the directors of the board if the loan is being taken for the firm.

Lease Rental Discounting at Terkar Capital

The financial institutions that participate in providing such are plenty. However, what makes Terkar Capital stand out is the support and hassle-free service that we have rendered over the years. We have successfully sanctioned LRD loans for the fitted candidates and arranged escrow facilities for better repayment. Hence, facilitating support throughout the process.

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How Do We Execute?

1. Understanding Client's Requirement

A tailored funding solution based on a thorough evaluation of the client’s business goals and financial requirements.

2. Analysing the Strengths and Opportunities

Leverage the client's financial and operational strengths to optimize their funding prospects.

3. Documentation

Ensuring meticulous preparation of all necessary documents to facilitate a seamless funding process.

4. Identifying the Right Financial Product

Recommending the most suitable financial product to align with the client’s specific goals and requirements.

5. Soft Approval From Financial Institutions

Securing preliminary approval from financial institutions based on the client's profile and funding needs.

6. Actual Submission of the Documents

Submitting all finalised and verified documents to the financial institution for formal processing.

7. Disbursement

Coordinating with financial institutions to ensure timely release of funds.

8. Funding As Required

Providing funds customised to the client’s operational or expansion needs, ensuring business growth.

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Client Feedback

What our clients think about us?

D*** Shinde
D*** Shinde
☆☆☆☆☆

Terkar Capital has demonstrably improved the quality of funding candidates presented to us. Their rigorous client selection process, including a deep financial analysis, gives us confidence in the businesses we evaluate. Their professionalism and execution are top-notch, making them a trusted partner for any financial institution seeking qualified borrowers.

Pratibha K***
Pratibha K***
☆☆☆☆☆

Thank You for the numerous financing options that you make available at a lower cost of borrowing. Terkar Capital not only provides transparency but also values the time of its clients. We appreciate the minimal time you took to provide funds to the company. Highly recommend Terkar Capital for funding requirements.

Harshada T***
Harshada T***
☆☆☆☆☆

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

M Dwivedi
M Dwivedi
☆☆☆☆☆

Obliged for the services by Terkar Capital in helping secure funds for the business. They offer a broad range of advanced funding solutions and deliver financial solutions that are right for customers. Grateful for the services rendered by your firm.

Terkar Capital is a registered brand of Terkar Global Financial Development Pvt Ltd, an Investment Banking Firm with a national footprint. We work extensively with professionals and businesses of all sizes to arrange debt funding instruments.

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Head Office

Castle Eleganza, 103, Bhonde Colony, Dr.Ketkar Road, Erandwane, Pune – 411004, MH-India

Yes@terkarcapital.com

+91 8308629820

Corporate Office

The Capital, Level 7, B-Wing, Plot C – 70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051.

Mumbai@terkarcapital.com

+91 7414973455

Branch Offices

Nashik | Nagpur | Chhatrapati Sambhaji Nagar | Hyderabad

Operational Presence

Delhi | Bengaluru | Chennai | Kolkata | Ahmedabad | Surat

Growing Nationwide…

Terkar Capital

In Association with:

MSME Global Mart | MCCIA

© Terkar Capital 2024

CIN – U70200PN2023PTC224016

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All formal communication from Terkar Capital will be conducted exclusively through our designated official emails. Do not respond to fraudulent calls or emails claiming to be from Terkar Capital. Contact us using the official coordinates!!

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