Lease Rental Discounting (LRD) is one of the loan schemes offered by banks 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.
Loan against rental income
From 1 cr to 50 cr
All types of property Commercial, Industrial, Where house or godown