Making a Difference to Those Who Make a Difference - Lease Rental Discounting
Lease rental Discounting is offered against the rental receipts and is availed by tenants against the leased contract. So this is basically the funding against the
rental receipts for the specified period.
Feature & Benefits - Lease rental Discounting
Flexi Loan Facility - Options of flexi loan which confirm that one pays interest on the amount utilized for the stated period only are available under Lease Rental Discounting option
Higher Loan Amount - One can raise big ticket funds against the rental receipts for purchase on another property, or to address working capital requirement in business etc.
Repayment Plan as per Contract - The tenor is subject to remaining lease period of the property, and one don't have to deplete the savings
Foreclosure - No cost or charges on part payment and foreclosure, this makes it a budget friendly credit solution.
- Documentation - Lease rental Discounting
- KYC - ID & Address proof
- Banking - for last one year
- Income - ITR with computation & Balance sheet - 2 yrs
- Lease agreement papers
- Last photograph
Pre-Requisites - Lease Rental Discounting
Not everyone who has given their property on rent can enter into a lease rental discounting agreement. These agreements can only be entered into if the following pre-requisites are met.
Banks are using future cash flow as collateral to make lump sum loans now. Hence, the lease rental discounting loan is only as valuable as the future cash flows are certain. It is therefore the bank's responsibility to ensure that the tenant is financially fit to meet the obligations of the bank. Therefore Banks only discount lease rentals belonging to renowned corporations with a good credit rating.
Long Term Lease:
Secondly, the tenure of the bank's loan is usually between five to seven years. Banks do not make short term lease rental discounting loans. It is for this reason that banks want the agreement to be of about the same tenure as well.
Dual Usage of Property - Lease Rental Discounting
Under LRD option, owners can use their properties more effectively. This is because owners can take one loan against the capital value of the property. At the same time, they can take another loan which is secured by the cash flow that the property in question will produce. Therefore, lease rental discounting offers much needed liquidity which is not present in immovable properties.
Key terms - Lease Rental Discounting
Lease Rental Discounting | LRD loans | Rental Discounting | Loan against Rental receipts | Loan against commercial Property Rental | Rental Funding | Loan against Rent | Property discounting loan | property loan