Lease Rental Discounting

We provide Lease Rental Discounting (LRD) to the clients. Under LRD, the borrower pledges the forthcoming rental collection from the leased property to the bank for loan repayment.  The various factors that a bank keeps in mind while offering Lease Rental Discounting (LRD) are:

• Credit worthiness of the lessee in terms of rent paying capacity
• Location of the property with regards to factors such as growth & expansion prospects, presence of other industries, civic amenities, etc.
• Profile of the lessee.
• 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 LRD.
• The legibility of the loan under LRD is computed by taking 70-75% of the net rental income and segregating it by per lakhs EMI of the tenure of left over years in the lease rent agreement.

Banks generally open a deed account along with the applicant. The rental/lease income is credited into this account and EMIs are reduced pit of it.