Avail Lease Rental Discounting Facility!

Avail funds against future rental income with our Lease Rental Discounting (LRD) facility. Access capital seamlessly while maintaining your lease agreements.

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Long Loan Tenure

Lease Rental Discounting Facility (LRD Loan)

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.

Key Features to Apply for a LRD Facility

Advantages of Lease Rental Discounting Facility

Get all your future rental income now
You can build another property against the amount you get
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
Better cost of borrowing
Fast fundraising process
Better comfort to both borrower and lender

Characteristics of LRD Loan

1. Criteria

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

2. Borrowers

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

3. Loan Amount

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

4. Repayment of the Loan

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

Eligibility Criteria to Avail Lease Rental Discounting

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.

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.

How we execute LRD Facility?

Here’s the execution process to avail of a lease rental discounting facility smoothly at Terkar Capital.

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Client's Testimonial

What our clients think about us?

H Tamhankar

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!

J Agwan

Terkar Capital is upright at delivering specialized funding needs. They implement what they state. Because of you, we're able to make our business reach an exponential level.

A Waghmare

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.

C Sonawane

Thank you Terkar Capital for processing my business loan in just a few working days. Very professional & skilled team. They understood my requirements to a level that were beyond my expectations from any lending company. I strongly recommend Terkar Capital.