Lease Rental Discounting : Overview

Lease Rental Discounting is a term loan that is offered against rental receipts and is availed by tenants against leased contracts. This advance provided to the lessee is based on the discounted market price of rentals and the underlying value of the property. You can go for LRD, in case you own a property that renders you fixed rentals. If you own a property, you are liable to earn fixed rentals from the same at regular intervals. With Lease Rental Discounting through Loan Against Property from Bajaj Finserv, you can now get a loan on the discounted value of rentals and the underlying property value.

Lease Rental Discounting : Features and Benefits

Now that you know what is lease rental discounting check out its features and benefits -

  • Loan Amount

    LRD meaning Lease Rental Discounts offer convenient access to considerable funding of Rs.10 Crore to Rs.50 Crore.

  • Pre-approved offers

    Approved Loan Tenure

    Individuals can avail such advances for a maximum tenure of 11 years subject to the remaining lease period of the property in question.

  • Flexi Loan facility

    Flexi Loan Facility

    Lease Rental Discounting offers individuals with the Flexi Loan facility under which you pay interest only on the funds utilised from the total sanctioned loan amount.

  • Foreclosure Or Part-prepayment Facility

    Low to no charges on the part-prepayment and foreclosure services that makes the advance more affordable.

Lease Rental Discounting : Interest Rate, Fees & Charges

Following are the lease rental discounting interest rate, fees and charges involved -

S.No. Fees Charges
1. Rate of interest 10.25% to 13%
2. Loan processing fees Up to 2% of the credit
3. Statements charges Nil
4. Bounce charges Rs.3600 per bounce
5. Principal and interest statement charges Nil
6. Penal interest 2% per month + taxes
7. PDC swap charges Nil

Lease Rental Discounting : Documents Required

Keep the following documents handy to avail an LRD loan after knowing what is a lease rental discounting and applying for the same –

  • ID proof

  • IT returns and balance sheet

  • Bank account statement of the last 6 months

  • Lease agreement paper

  • Application form

  • Photograph

Lease Rental Discounting : Eligibility Criteria

Once you know what is LRD and the interest charges involved, you can go for this kind of loans as they are one of the preferred ways to generate funds via owned assets. All that you need to do is meet the following eligibility criteria –

S.No. Categories Eligibility specification
1. Age At least 25 years
2. Nationality Indian
3. Property value Minimum revenue generated via property is Rs.10 Crore

Lease Rental Discounting : Calculating EMI

You can calculate the EMI of your loan in advance and hence, be prepared for your impending financial structure across the tenure of the loan. Avail a Loan Against Property EMI Calculator and compute your monthly instalments based on the chosen tenure and loan amount.

Lease Rental Discounting : How to Apply?

After you know what is LRD loan, check out how you can apply for the same –

Step 1

Visit the official site of your lender.

Step 2

Fill in the appropriate application form.

Step 3

Provide the required details.

Step 4

Furnish essential documentation.

Avail an LRD and enjoy the benefits brought by it. You can also invest the funding so obtained in other investment schemes to gain attractive returns on it.

Lease Rental Discounting : FAQs

What is Lease Rental Discounting?

Lease Rental Discounting or LRD is a term loan that is offered against rental receipts that are derived from lease contracts of property. This loan offered is based on the underlying value of a property and the discounted value of rentals.

Lease Rental Discounting is considered to be a fixed income that is rendered across the tenure of this advance.

Along with understanding what is lease rental discounting, one also needs to know about its multiple borrower-friendly features –

  • Attractive lease rental discounting interest rates.
  • High-value loan amount from Rs.10 Crore to Rs.50 Crore.
  • Simple eligibility criteria.

Apart from these in-depth benefits characteristic to what is LRD loan, you can also enjoy a a hassle-free application procedure. An understanding of what is LRD is vital to help you approach the best lenders.

Now that you know what is a lease discounting for rental properties, keep essential documents handy and apply for one with ease.

What is Lease Rental Discounting eligibility?

Property owners who opt for lease rental discounting facility to avail loan against the rent received and property valuation are required to meet specific eligibilities. The basic lease rental discounting eligibility criteria you need to meet for this loan are as follows –

  • Your age must be a minimum of 25 years.
  • You must be a resident of India.
  • Your property must generate rental revenues to avail minimum loan of Rs. 10 Crore.

This facility operates through the same concept that frames the legalities of what is a lease. Thus, lease rental discounting or LRD allows the lender to treat the rented property as a leased one as per the LRD meaning.

With this understanding of what is LRD or what is lease rental discounting check out the features and benefits of availing this loan.

Avail the loan from Bajaj Finserv to enjoy competitive lease rental discounting interest rates.
With this knowledge of what is LRD loan, you can proceed to apply for it without any hassle.

What are Lease Rental Discounting charges?

Lease rental discounting offers a great option to raise funds through a rented property. Below are mentioned the lease rental discounting charges applicable on the loan.

  • Lease rental discounting interest rate – 10.25% to 13% BFL–I–FRR (Bajaj Finance Limited Floating Reference Rate for Institutional Finance cases.)
  • Processing fees – Up to 2% on the loan amount.
  • Penal interest – 2%/month + applicable taxes.
  • Bounce charges – Rs.3,600 for each instrument.
  • Part-prepayment and foreclosure charges for individuals at a floating rate of interest – Nil.
  • Part-prepayment/foreclosure charges for other borrowers – 2%a and 4%+ applicable taxes respectively.

Along with this information, you must also know what is a lease to have a clear idea of how it operates. Apart from understanding what is lease rental discounting or LRD, also check out the benefits it brings.

Within the LRD meaning, note that the discounted value of rents received should be 90% and property valuation up to 55% for commercial properties. Now that you know what is LRD loan, apply for it to enjoy maximum benefits.

What is Lease Rental Discounting interest rate?

Lease Rental Discounting from reputed lenders comes with attractive interest rates for an affordable repayment structure sans the unnecessarily financial burden. Additionally, with transparency in lease rental discounting interest rates, borrowers can calculate their EMIs in advance. It helps in the smooth management of their finances.

While a detailed idea about what is lease rental discounting helps borrowers decide upon their property to be leased out, knowing the lease rental discounting interest rates is also essential.

Before approaching a lender make sure to know what is LRD meaning and find out about the best lease rental discounting interest rates as well as other additional charges, viz. –

  • Interest rate: BFL- I-FRR*– Margin = 10.25% to 13% (Bajaj Finance Limited Floating Reference Rate for Institutional Finance cases)
  • Loan statement charge: Nil
  • Interest and principal statement charge: Nil
  • Processing fees: Up to 25 of the credit amount.
  • Loan statement charges: Nil
  • Bounce charges: Rs. 3600 for each bounce.

Knowing what is LRD and about its interest rates helps a lessee settle upon the best tenure for their loan. Now that you know what is LRD loan, apply for the same with a hassle-free application process.

What is the list of documents for Lease Rental Discounting?

The list of lease rental discounting documents consists of -

  1. ID proof (Aadhaar Card/ PAN Card/ Voter’s ID/ Job Card issued by NREGA/ Driving License.)
  2. IT returns, P/L account statement and balance sheet of the previous 2 years.
  3. Bank account statement of the last 6 months.
  4. Lease deed or license and leave agreement.
  5. Signature proof.
  6. Photograph of a partner for LRD meaning lease rental discounting.
  7. Application form.
  8. Certificate of incorporation.
  9. Partnership deed.
  10. AOA/MOA.

Once you know all about what is a lease rental discounting loan, furnish all the necessary lease rental discounting documents to avail its offered benefits.

Despite the host of lucrative features offered by this advance, make sure to approach a lender and settle upon it, only after knowing completely about –

  • What is lease rental discounting.
  • Eligibility criteria.
  • Amount offered under this loan.
  • Lease rental discounting interest rates.

Post conducting a thorough research on what is LRD loan and comparing lenders, choose the one that offers you with the most attractive benefits. After familiarising yourself with what is LRD, apply for it via a hassle-free application process.