Lease Rent Discounting
Lease Rental Discounting (LRD) in Punjab & NCR
Lease Rental Discounting is one of the loan schemes offered by banks under which an applicant obtains loan against his/her leased property. Under Lease Rental Discounting the borrower pledges the future rental earnings from the leased property to the bank for loan repayment. Lease Rental Discounting is generally offered against commercial properties.
Lease Rental Discounting 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 Lease Rental Discounting 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 Lease Rental Discounting. The various factors that a bank keeps in mind while offering Lease Rental Discounting are:
Profile of the lessee.
Credit worthiness of the lessee in terms of rent paying capacity.
Location of the property with regards to factors such as growth prospects, presence of other industries, civic amenities, etc.
One of the most important points that a bank keeps in mind is that in no way it should be facilitating the conversion of black money into white through Lease Rental Discounting.
The eligibility of the loan under Lease Rental Discounting is calculated by taking 70-75% of the net rental income and dividing it by per lakh EMI of the tenure of left over years in the lease rent agreement. Banks normally open an Escrow account along with the applicant. The rental/lease income is credited into this account and EMIs are deducted pit of it.
You can choose to take a LAP on you leased property. or loan amount can also be utilized for purchase of new property whether housing, commercial or plot. You can use loan amount for construction of your commercial or residential property on plot or do extinction & renovation of property
