Raise long-tenor capital against the rentals from leased property. CA-led LRD advisory across banks and NBFCs — we help you turn a steady stream of lease rentals into upfront capital at the right rate and tenor, from the right-fit lender. Pune & Mumbai-based, we run the case end to end: lease and lessee assessment, lender shortlisting, sanction negotiation and disbursement. ₹4,250 Cr+ mobilised across 100+ deals since 2011.
Lease Rental Discounting is a term loan raised against the future rental income of a leased commercial property. The lender discounts the contracted rentals — typically routed through an escrow — and advances a loan serviced by those rentals, with the property mortgaged as security. Because repayment rides a contracted rental stream from a creditworthy tenant, LRD can support long tenors and competitive rates.
Finnova Advisory is an advisory firm — we structure the file and negotiate terms; the lender sanctions and disburses.
Lease Rental Discounting (LRD) is a term loan raised against the future rental income of a leased commercial property. The lender discounts the rentals payable under a lease — typically routed through an escrow — and advances a loan serviced by those rentals, with the property itself mortgaged as security. Because repayment rides a contracted rental stream from a creditworthy tenant, LRD can support long tenors and competitive rates. Getting it right means matching the loan to the lease tenor, lessee quality and escrow mechanics.
From unlocking upfront capital to refinancing costlier debt, LRD turns a contracted rental stream into funds the business can deploy today — while you keep the asset and its appreciation.
Convert a leased asset’s future rentals into upfront funds for the business — without selling the property.
Fund new development or acquisition off an income-producing asset already on your books.
Replace costlier debt with a rental-serviced facility aligned to the contracted income stream.
Monetise leased commercial space for liquidity, while retaining ownership and future upside.
LRD doesn’t look at your turnover — it looks at your rent. We fast-forward the future rental income from a leased property into a lump sum today, repaid automatically from the rent itself.
You own a commercial property leased to a creditworthy tenant on a registered, multi-year lease.
The lender values the future rentals over the lease at their present value — the stronger and longer the lease, the larger the loan.
You receive upfront capital — typically 60–75% of property value — without selling the asset.
LRD lends against the present value of your future rent — move the sliders for an indicative figure.
Typically also capped at 60–75% of the property’s market value.
Indicative only — actual amount depends on the lease, tenant quality, property value and lender. Finnova is an advisory firm; the lender sanctions and disburses.
Get your exact number — talk to us →Both raise capital against property — but they’re underwritten differently. If your property is leased and rent-yielding, LRD is usually cheaper and larger.
| Attribute | Lease Rental Discounting | Loan Against Property |
|---|---|---|
| Lender looks at | Quality & stability of the rental stream | Market value of the asset |
| Repaid from | The rent itself, escrowed — self-liquidating | Your business cash flows / income |
| Property type | Rent-yielding commercial only | Residential, commercial or industrial |
| Typical LTV | 60–75% of value (capped by rentals) | 40–75% of value |
| Indicative rate | ~8.75–12% (often lower) | 9.5–14% |
| Tenor | Matches the unexpired lease | Up to 15 years |
| Best for | Owners of leased, income-generating property | Owners borrowing against an owned asset |
Indicative figures (market, 2026) — actual terms depend on the lease, tenant, property and lender. We tell you which instrument fits, and arrange it. See our full guide: LRD vs Loan Against Property.
LRD turns on the lease, not just the building. Here’s what makes a property fundable — and what we assemble before the file goes in.
Owners of leased commercial property — office, retail or warehousing — with a creditworthy tenant and a stable, contracted rental stream; developers and mid-market corporates.
CA-led and Pune & Mumbai-based, serving Maharashtra, Delhi NCR, Bengaluru, Hyderabad and pan-India.
Indicative — varies by lender, lease tenor and lessee profile. We tell you exactly what each lender will want before the file goes in.
A clear path from case diligence to disbursement, with the escrow set-up as the structural keystone between sanction and drawdown.
We review the lease, lessee credit and indicative eligibility — and tell you where the file stands today.
We match rate, tenor and escrow appetite across right-fit banks and NBFCs, and shortlist the right lender.
We compile the file and coordinate valuation, legal/title and lease verification — the checks most often on the critical path.
Credit-committee interaction, rate/tenor negotiation and the sanction letter — handled by the desk on the file.
Mortgage and escrow set-up, condition-precedent compliance and drawdown — the escrow is the keystone that aligns repayment to rent.
Four reasons clients hand us the mandate — from lease assessment through to disbursement.
Your mandate is partner-led, not passed to a junior bench — the file is read the way a credit committee will read it.
We lead with the lender whose LRD appetite, escrow mechanics and rate fit your lease and lessee profile — not a blanket application.
Lease assessment, valuation, sanction negotiation, escrow set-up, documentation and disbursement run by one desk.
₹4,250 Cr+ arranged, ₹550 Cr largest single facility and 100+ deals since 2011 — across banks and NBFCs.
A sample of recent lease-rental-discounting mandates, anonymised for confidentiality. Sectors and structures are real; names are not.
An owner of a fully-leased office building with a blue-chip tenant raised long-tenor capital via LRD, monetising future rentals into upfront funds while retaining the asset and its appreciation.
[Illustrative]A developer with leased retail space consolidated costlier construction-phase debt into a rental-serviced LRD facility, easing monthly outflow against a contracted income stream.
[Illustrative]One conversation tells you the indicative facility size, the right-fit lender and how fast it can move from diligence to disbursement. No pitch — just a straight read from people who run LRD mandates every week.
We’ve received your details. A senior member of our team will review them and get back to you within one business day. Everything you’ve shared stays strictly confidential.
When a rent-backed LRD beats a loan against property — and how each is underwritten.
Deeper dives for specific assets and situations, and the major commercial markets we cover.