Lease Rent Discounting (LRD) is one of the loan schemes offered by banks and financial institutions under which an applicant obtains loan against his/her leased property. Under LRD, the borrower pledges the future rental earnings from the leased property to the bank for loan repayment. LRD is typically offered against commercial properties.
LRD is particularly beneficial for the builders/developers who make a huge investment in raising a commercial property for rent/lease purposes. The investments of the builders are in a way locked as the returns are obtained only in the form of rentals. Thus, they opt for LRD from banks by pledging their future rentals from the property. Banks also ensure that the future rental earnings from the property are secured before offering LRD.
The various factors that a bank keeps in mind while offering LRD are:
- Profile of the lessee
- Credit worthiness of the lessee in terms of rent paying capacity
- Location of the property with regards to factors such as growth prospects, presence of other industries, civic amenities, etc.
- One of the most important points that a lender keeps in mind is that in no way it should be facilitating the conversion of black money into white through LRD
You can get anywhere between 75-100%* of your Home’s Agreement Value. When a Bank or NBFC lends to you for buying your Home, it usually requires you to pay an upfront payment of 0-25%* of the Agreement Value, depending on the property that you are purchasing, your financials, the documentation and the risk-bearing capacity & policies of the institution. In case your financials or documents seem insufficient, the financials of yourself and any of your immediate family or blood relatives or your firm or company can be combined for getting your Home loan.
Wealth Navigator is associated with almost all the renowned Pvt Banks and Top of the line NBFCs. We are in a position to give the best deal in terms of interest rates, the funding proportion and service our every Individual who is looking for Loans related to Business, Home, Mortgage, Car etc. We, at Wealth Navigator, are committed to maintain a 100% loan conversion ratio with all our expertise and experience, spreading smiles amongst our clients.