Exclusive Lease Rental Discounting Solutions for HNIs

Lease Rental Discounting (LRD) loans are specialized term loans that leverage the rental income from your property as collateral. With LRD loans, you can use either the leased property or another high-value asset as security, providing a robust financial strategy for high-net-worth individuals seeking to maximize their investment potential and secure long-term growth.

Understanding the difference between Loan Against Property (LAP) and Lease Rental Discounting (LRD) is crucial for HNIs looking to optimize their investments:

Lease Rental Discounting (LRD):

• Approval is based on rental income and property value.
• Existing debts are less significant as banks typically receive rent payments directly, ensuring EMI payment.

Loan Against Property (LAP):

• Approval depends on credit history, income, and existing debts.
• High EMI liabilities can lead to loan rejection.

Lease Rental Discounting loans offer a strategic advantage by leveraging rental income, making it an ideal choice for HNIs.

Yes, some banks offer LRD loans as an overdraft (OD) facility. This option allows you to access funds flexibly, leveraging your rental income to meet varying financial needs.

Lease Rental Discounting (LRD) loans are available for properties generating stable rental income. To qualify, ensure at least 2 years remain on the lease agreement. LRD loans are typically offered on commercial properties such as office spaces, retail spaces, and warehouses. They can also apply to industrial and high-value residential properties. Leverage your rental income for strategic financial growth with LRD loans.

Unlock the potential of Lease Rental Discounting loans for diverse financial goals. Whether it’s expanding your business, acquiring new properties, consolidating loans, or fulfilling personal needs, LRD loans offer flexible financing solutions tailored to high-net-worth individuals.

To secure a lease rental discounting loan, ensure your property meets these criteria:

1. Reliable Tenants: Tenants who fulfill rental obligations consistently.
2. Legal Compliance: Property free from legal issues.
3. Valid Lease Agreement: A legally binding lease agreement in place.
4. Stable Rental Income: Consistent and verifiable rental income.
5. Minimum Lease Term: At least 2 years remaining on the lease.
6. Additional Income: Supplementary income strengthens loan applications.
7. Good Credit Score: Maintain a healthy CIBIL score for improved approval chances.

• Individual Applicants: Resident Indians, NRIs, PIOs, OCIs, and Merchant Navy personnel.

• Non-individual Entities: Companies, HUFs, trusts, and societies.

Empower your financial journey with LRD loans tailored to diverse entities.

Loan amounts are based on rental income, potentially exceeding 200 crores from a single lender.

Unlock favorable interest rates with LRD loans, especially when leasing to premier corporations, blue-chip companies, or banks:

• Competitive Rates: Benefit from impressively low interest rates, often starting at 8%, reflecting the tenant’s solid reputation and financial stability.
• Tailored Solutions: Enjoy rates below market standards with a corporate tenant and strong financial history.
• Personalized Quotes: Contact us for a bespoke quote tailored to your unique financial needs.

The typical LTV is 70%, but in a favorable lending environment, it can reach up to 100%.

Loan tenures typically range from 5 to 15 years. However, some lenders may extend the tenure to 20 years based on the sustainability of property rentals and other factors.

For individual borrowers, the age can also be a factor. Non-individuals do not such have age restrictions.

Besides borrowers’ documents depending on profile, the bank needs the following extra items:

• Lease agreement.
• Bank statements from the past six months that show rental income.

Sometimes, the bank might demand a Tripartite Agreement involving the bank, borrower, and tenant. With this agreement, the tenant agrees to make rental payments directly to an escrow account designated by the bank.

Yes, you can make partial payments after 6 to 12 months. Banks typically allow up to 25% of the loan amount to be paid as partial payments without charges.

Yes, you have the option to foreclose the loan after 6 to 12 months.

Lease rental discounting is available through major banks like Axis Bank, HDFC Bank, ICICI Bank, and many others.

At Joy Loan, we boast over a decade of market expertise, ensuring we can secure the best deal based on your profile. Contact us now to discover the most suitable lender for your needs.

You can claim a deduction for the interest paid on LRD loans from the rental income generated by the property, leading to tax savings.

Your eligibility is primarily based on the rental income from the property. Banks usually consider 70% to 90% of the net rental income for calculating EMIs, depending on the lessee’s credibility. If you have a strong financial standing, they might consider the full 100%.

Besides, your repayment capacity can also influence the loan amount. Typically, the loan amount can be 60% to 80% of the net present value of the future rentals you’ll receive during the loan tenure.

Looking for the perfect loan at unbeatable rates? Choose Joy Loan and get access to the lowest rates from 50+ partner banks and NBFCs. Relay on our 12+ years of experience for faster loan approvals and disbursements. Join our hundreds of satisfied customers like you.

Contact us for swift and tailored loan solutions.