Eligibility criteria and documents required
Anyone can apply for our lease rental discounting facility as long as they meet the criteria mentioned below.
Eligibility criteria
- Nationality: You must be an Indian citizen residing in India.
- Minimum age: An individual applicant/ co-applicant must be minimum 25 years or 18 years for non-financial applicant (property owner).
- Maximum age: 85 years at loan maturity of individual applicant/ co-applicant including non-financial applicant (property owner).
*Higher age of co applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and taken as a co-applicant on the loan structure.
*The upper age limit is considered as the age at the time of loan maturity. - CIBIL Score: A CIBIL Score of 725 or higher is ideal to get your loan approved.
- Occupation: Self-employed non-professionals, self-employed professionals and salaried customers having rental income.
Documents required
- KYC documents (identity and address proof)
- IT returns and balance sheet
- Bank account statement of the last 12 months
- Lease agreement paper
Note: This is an indicative list that may change based on your actual loan application.
How to apply for a lease rental discounting
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Frequently asked questions
The eligibility for Lease Rental Discounting (LRD) is determined by various factors. The primary considerations include the rental income from the property, lease agreement period, creditworthiness of the tenant, location, and type of property. Lenders also assess the Loan-to-Value (LTV) ratio, Debt-Service Coverage Ratio (DSCR), property valuation, borrower's financial stability, and the age of the property.
Lease Rental Discounting (LRD) is a financial product that involves using future rental cash flows as collateral to secure a loan. In this arrangement, a property owner, who is receiving regular rental income from leasing out a property, can pledge these future rental receivables to avail a loan from a financial institution.
The margin for lease rental discounting refers to the difference between the loan amount sanctioned by the lender and the value of the property or the rental income assigned as collateral. It is commonly expressed as a percentage, indicating the portion of the property's value that is not covered by the loan.
