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. So, if you want to avail of funding, against your rental receipts, this financing option enables you to do that.
Features and benefits of lease rental discounting
-
High-value financing
Get convenient access to high-value funding with lease rental discounting, to take care of your big-ticket purchases and expenses.
-
Comfortable repayment plans
Subject to the remaining lease period of the property in question, you can get a loan tenor that doesn’t interrupt for your future or deplete your savings.
-
Flexi loan facility
Pay interest only on the funds utilised from the sanctioned loan amount using the Bajaj Finserv Flexi loan facility.
-
Foreclosure benefits
Enjoy no costs on part-prepayment and foreclosing your loan, making this a budget friendly credit solution.
Lease rental discounting (LRD) is a term loan offered against rental receipts. You can opt for LRD when you own a property that gives you fixed rental income at regular intervals. As a tenant or lessee, you can avail of it against lease contracts. The amount you can borrow is based on the discounted market price of rentals and the value of the property.
Avail an LRD and enjoy multiple benefits such as high-value financing, easy application, quick disbursal, and more. You can use the loan for any purpose or invest the sum to gain attractive returns.
Documents required for applying for lease rental discounting
Keep the following documents handy to avail an LRD loan from Bajaj Finserv.
- ID proof
- IT returns and balance sheet
- Bank account statement of the last 6 months
- Lease agreement paper
- Application form
- Photograph
How to apply for lease rental discounting
The process for an LDR application is extremely easy to follow:
- 1 Visit our official site and click on the ‘Apply Online’ option.
- 2 Fill in the application form with the required details.
- 3 Offer the required documentation.
Our representatives will be in touch with you within the next 24 hours* to guide you on the next steps so you can get the money in your bank account.
Lease rental discounting FAQs
Lease rental discounting or LRD is a term loan offered against rental receipts derived from lease contracts of property. The loan amount you get is based on the underlying value of the property and the discounted value of rentals.
Lease rental discounting is considered as fixed income rendered across the tenor of this advance. With this understanding, consider the benefits of LDR.
● Attractive lease rental discounting interest rates
● High-value loan amount
● Simple eligibility criteria
● Hassle-free application procedure
Property owners who opt for the lease rental discounting facility are required to meet specific eligibility criteria.
● Your age must be at least 25 years.
● You must be a resident of India.
● Your property must generate rental revenues to avail a minimum loan of Rs. 10 crore.
Lease rental discounting allows you to raise funds through your rented property. Here are the lease rental discounting charges applicable.
● Lease rental discounting interest rate – 8.00%* to 13.00% BFL–I–FRR (Bajaj Finance Limited 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 a lease is, to have a clear idea of how it operates. Do also note, that the discounted value of rents received should be 90% and property valuation up to 55% for commercial properties.
The documents you need to are listed below.
• ID proof (Aadhaar card/ PAN card/ voter ID/ job card issued by NREGA/ driving license)
• IT returns, P/L account statement, and balance sheet of the previous 2 years
• Bank account statement of the last 6 months
• Lease deed or license and lease agreement
• Signature proof
• Photograph of a partner
• Application form
• Certificate of incorporation
• Partnership deed
• AOA/MOA
After thorough research on what a lease rental discounting loan is and comparing lenders, choose the one that offers you the most attractive features. Apply for it via Bajaj Finserv for a hassle free borrowing experience.
