Lease Rental Discounting

Lease Rental Discounting is a term loan provided by banks under which the borrower pledges his future rental income to the bank. Essentially, LRD is an agreement between three parties: the borrower (the owner of leased property), the lessee/tenant (an individual who rented the property), and the lending institution that lends the funds.

Under this agreement, the lessee is required to directly deposit the stipulated rent with the lender instead of the borrower, i.e., repayment of the loan is facilitated by direct rent deposits in the escrow account held by the designated lender. Thus, a borrower effectively obtains a loan based on the rent to be obtained over the lease term from the lessee. Also, a certain amount is fixed while borrowing the loan in the LRD. So, the amount of EMI cannot be altered.

The USP of LRD loans is that the borrower can use the current rental income flows and avail long term loans for business expansion, long-term and working capital needs or debt restructuring, or some other reason. This loan product is designed for individuals with substantial rental income who cannot secure a direct loan against property, possibly because there might already be a loan sanctioned against the underlying piece of real estate.

For this loan, the maximum tenure that can be kept is ten years. It has a lower interest rate when compared with unsecured loans. Along with this, the loan is procured easily and in a fast manner.

Advantage of Lease Rental Discounting (LRD) Services from Finnova Advisory

Finnova Advisory offers Lease Rental Discounting (LRD) assistance. We have formed alliances with numerous banks and financial institutions to provide a wide range of lender options. According to your eligibility and financial requirement, we recommend quick processing, competitive interest rates, and multiple collateral options to ensure that this is the best option for your business. We also deal with private, PSUs, co-operative banks, and NBFC’s.

Along with this, our team of specialists takes pride in offering unbiased advice to our customers regarding our services. Acting as a mediator, we are readily available to help you apply for corporate finances service from some leading banks and financial institutions.