Features & Benefits of Lease Rent Discounting (LRD)
Loan Against Rental Income
Secure funding based on rent receivables from leased property.
Minimal Collateral Requirement
No additional collateral needed apart from the rented property itself.
Easy Liquidity
Helps businesses access immediate funds without selling assets.
Eligibility Criteria for Lease Rent Discounting (LRD)
- Who Can Apply?: Any Individual, Proprietary Concern, Partnership, LLP, or Company who has executed a valid Rent/Lease Agreement.
- Type of Lease Agreement: The Rent/Lease Agreement should preferably be with Banks, Private Limited, or Public Limited companies to ensure stable rental income.
- Income Requirement: The applicant must have sufficient rental income to cover the repayment obligations of the proposed loan.
Documents Required for Lease Rent Discounting (LRD)
- Loan Application in bank’s prescribed format
- Rent Agreement of the property offered as security.
- Last 3 years' Audit Report with financial statements & ITR (along with schedules).
- KYC Documents (Aadhaar, PAN, Passport, etc.).
- Existing Bank Statements for the last 1 year.
- Copy of Sanction Letters for all existing credit facilities.
- Statement of Loan Accounts for the last 1 year.
- Details of Credit Facilities with other banks (if any).
