LRDMortgage

Lease Rental Discounting or LRD: Features & Benefits

lease rental discounting

What is Lease Rental Discounting or LRD?

LRD or Lease Rental Discounting is a term loan provided against receipts derived from lease contracts with tenants. The loan is provided to the lessor based on the discounted value of the rentals as well as the inherent property value. It’s another process to obtain finance from a bank or other financial institute or institutes that are committing. Lease Rent Discount consideration is between the debtor that own the premises, the tenant who has leased the said premises or taken on lease as well as the bank or financial institute or Corporate Enterprise. The rent is considered as fixed income over a stipulated time called Lease period or duration of lease agreement.

The agreement is between the lender and borrower and the significant term of repayment would be the rent that is directly deposited with the lender and not with the debtor. The Borrower is sanctioned a loan based upon the rent to be accumulated over the period of lease.

LRD: Key Features & Benefits

Loan AmountLoan Amount: Under LRD we serve clients from 1 to 200 Crores 
DurationDuration: You can get LRD up to 15 years, long term solution. 
Interest rate on LRDInterest Rate: We make sure our clients get the best possible Interest rate for LRD. 
Top up on LRDTop-Up: We help get Top-Up funding over and above the existing LRD. 

 

Key Documents for Lease Rental Discounting

ID & ADDRESS PROOF ID & ADDRESS PROOF 
Lease Rental Agreement Lease Rental Agreement 
Audited Financials Audited Financials & ITR 
Bank StatmentBank Statement of last 12 months

FAQ’s on (LRD) Lease Rental Discounting 

LRD or Lease Rental Discounting is a term loan provided against receipts derived from lease contracts with tenants. The loan is provided to the lessor based on the discounted value of the rentals as well as the inherent property value. It’s another process to obtain finance from a bank or other financial institute or institutes that are committing. Lease Rent Discount consideration is between the debtor that own the premises, the tenant who has leased the said premises or taken on lease as well as the bank or financial institute or Corporate Enterprise. The rent is considered as fixed income over a stipulated time called Lease period or duration of lease agreement.
One could borrow between 50-90 percent of the market value of your property subject to your income eligibility and other supported documents.
We help arrange Lease Rent Discounting (LRD) from minimum 3 years to maximum 15 yrs. The term for the loan will be limited to the retirement age or 60 years at loan maturity for midsize Clients and 65 years for self-employed clients.
The interest rate varies depending upon your loan amount, property type, lessee profile, Rental revenue etc and we at Redwood Syndicate assist in getting the best rate in the market based on your profile.
Rent is payable by directly into escrow account with sanctioned financial institution. The Inherent leased property, which can be commercial or residential building property, will be taken as collateral security.
Yes. All of the co-owners of your property might need to register as co-applicants. For a sole property owner or applicant, one adult member in the family shall need to register as a co-applicant. In case of partnership firm or a business, partners and promoter directors correspondingly will need to be co-applicants.
Yes. You May prepay the loan at any given moment after six months from the date of final disbursement of the loan. Foreclosure charges will be levied as applicable. This is true with most of the lending institutions.
Address Proof of the Individual/Partners /Directors: Latest Electricity /Telephone Bill PAN Card Aadhaar Card CST Registration Certificate Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate Copy of Lease Agreement along with the latest Rent paid Receipt. Business Profile on Company’s Letterhead Partnership deed in case of partnership firms Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 accountable for Addition or Deletion of Directors in case of businesses Last Few Years Trading, Profit & Loss A/c. And Balance Sheets Last one year’s Bank transactions note Business present loans have been shown in the balance sheet, then sanctioning letter, repayment schedule and track record of the same Firm/Company’s PAN Cards Individual income tax thirds of the Individual/Partners/Directors to last few years Last one year’s Bank announcement of Individuals, Partners, and Directors Share Holding pattern of Directors duly certified by a Chartered Accountant List of the Existing Directors of the business from the Registrar of the Companies Registered rent agreement copy with debtor that owns the assumptions and tenant that has leased the said premises And any other documents as required based on case to case basis

 

Why Redwood Syndicate?

  • Time bound and right investors as project financers. Time bound approach.
  • Cost effective funding Cost effective funding.
  • Bank on us for expert suggestions.Bank on us for expert suggestions.
  • In House team to examine Financial and Technical feasibility.In House team to examine Financial and Technical feasibility.
  • Efficient and transparent process of fundraising.Efficient and transparent process of fundraising.