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Numerous individuals possess commercial properties that they lease out. Renting out these spaces comes with its set of benefits, one of which is the ability to secure a Term Loan using the rental income received. Lease Rental Discounting (LRD) involves obtaining a Term Loan against the income generated from commercial assets or properties. This loan mechanism operates under the premise that your leased property generates a fixed rental income, which can be utilized as collateral to access immediate funds.

Factors Considered by the Bank When Providing Loan

In evaluating your eligibility for Lease Rental Discounting, the bank will consider various factors, including:

Value of your property

Your capacity to repay

Other assets you own &
Liabilities that might occur

Legality and technical aspects of your property

LRD loans operate on the premise of fixed rental income from leased properties. Tenants commit to regular rent payments under lease agreements with property owners, who can use these rental receipts as loan collateral.

Rent payments are directed to the bank as EMIs, simplifying the process. Each bank sets its own criteria for loan amounts against property, typically offering up to 70% of the property's valuation.

Customers who own properties in metro/ urban/ semi-urban areas, who have rented out their properties to Public Sector Undertakings/ Government/ Semi-government / Reputed Corporates, Banks, Financial Institutions and Multi-national Companies can avail loan against future rent receivable.

Your eligibility is computed on the basis of the rentals that you receive against the property. Your EMI can be up to 70% of the gross rental income or 90% of the net rental income whichever is lower.

  • Business Expansion - Using the loan obtained from LRD, property owners can make additional investments in real estate.
  • Tax Benefits - Owning additional property can result in tax deductions.
  • Balanced Cash Outflow - The borrower will enjoy a stable cash flow since the rent money owed by tenants covers the EMIs. Additionally, the loan proceeds generate further revenue through investments.
  • Low Capital Expenditure - The capital obtained from the bank loan significantly aids in cutting down personal expenses when investing in additional properties or businesses.
  • Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority).
  • Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority).
  • Last 3 years Income Tax returns (self and business) with Profit and Loss Account and Balance Sheets duly certified/audited by a Chartered Accountant.
  • Processing Fee Cheque in favour of bank.
  • Photocopy of Title Documents of the Property, Approved Plan.
  • Copy of Registered Lease Deed
  • Last 6-12 months Bank Statements which reflect the Rental Credits in the Account.

Why Choose Jfinserv for Your Loan Process?

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Competitive Interest Rates:

Take advantage of our competitive interest rates, guaranteeing that you can comfortably afford your dream home while safeguarding your financial stability.

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Flexible Repayment Options:

Customize your repayment schedule to align with your financial capacity, whether you opt for a shorter duration to minimize interest costs or a longer duration for more manageable monthly payments.

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Simple Application Process:

Easily apply for a home loan from the convenience of your own home through our intuitive online application process, saving you valuable time and effort.

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Transparent Terms & Conditions:

Transparency is our cornerstone. From the outset, you'll have complete clarity with no hidden fees or surprises along the way. You'll be fully informed about all terms and conditions from the start.

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Quick Approval and Disbursal:

We comprehend the importance of achieving your dream home promptly. With our swift approval and disbursement process, you'll find yourself stepping into your new home sooner than you expect.

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No Foreclosure Charges:

Acquire a personal loan hassle-free, devoid of collateral requirements, streamlining the borrowing process while minimizing risks. Embrace worry-free pursuit of your dreams with no foreclosure charges.

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Receive an estimated total of your monthly installment payments, including a detailed breakdown of the lease rental discounting loan.

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Loan Amount ₹ 2.00 Cr

Monthly EMI ₹ 2.00 Cr

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Frequently Asked Questions (FAQs)

What is Lease Rental Discounting (LDR)?addremove

Lease Rental Discounting (LDR) is a financing option offered by financial organizations where the rental income from leased properties is discounted to provide a loan to the property owner. It allows property owners to leverage their rental income to access funds for various purposes.

In Lease Rental Discounting, the lender provides a loan to the property owner based on the future rental income generated from leasing out the property. The loan amount is determined by discounting the future rental cash flows at a certain rate, usually a percentage of the total rental income.

Jfinserv offers Lease Rental Discounting against a wide range of leased properties, including commercial properties (offices, retail spaces), residential properties (apartments, villas), industrial properties, and others, subject to eligibility criteria.

Property owners who have leased out their properties to reputed tenants with a stable rental income stream are eligible for Lease Rental Discounting. Eligibility criteria is based on factors like property value, lease agreement terms, and borrower's creditworthiness.

The documents required for applying for Lease Rental Discounting may include property ownership documents, lease agreements, rental income statements, property valuation reports and borrower's identity and address proof.

You can apply for Lease Rental Discounting with Jfinserv by contacting our branch or through our online application portal. Our dedicated team will guide you through the application process and assist you with the required documentation.

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