Lease Rental Discounting FinLabs
Ideate Systems

Lease Rental Discounting FinLabs

Unlocking Capital Potential- Lease Rental Discounting (LRD)

Many people own commercial spaces and offer them on lease. Leasing such spaces has its own share of advantages, one of them, is being able to raise a Term Loan against the rental income received. Lease Rental Discounting (LRD) is a Term Loan offered against income-producing commercial assets/property. The LRD Loan works on the premise that your leased property derives fixed rent, which you can use as a ‘Collateral’ to generate funds, instantly.

Types of Loan Against Property (LAP) Loans

Leverage the value of your self-occupied residential property with a Loan Against Residential Property. Preferred by both salaried and self-employed individuals, lenders like HDFC Bank, ICICI Bank, Axis Bank, SBI, and Kotak Mahindra Bank offer competitive rates with a loan-to-valuation ratio of up to 70%.

Traders and service providers can fulfill urgent fund requirements by opting for a Loan Against Commercial Property. Maintain business operations while using the property as collateral. HDFC Bank, ICICI Bank, Axis Bank, SBI, Kotak Mahindra Bank, Capital First, and Edelweiss Capital are leading providers with a loan-to-valuation ratio of up to 70%.

Unlock funds for business expansion, factory renovation, or machinery purchase with a Loan Against Industrial Property. Offer your manufacturing unit, industrial land, or workshop as collateral. Kotak Mahindra Bank, Edelweiss Capital, HDFC Bank, IIFL, Aditya Birla Finance, and SBI are prominent providers with a loan-to-valuation ratio of up to 60%.

Secure a Loan Against Property Loan by mortgaging non-agricultural plots for business or personal needs. Leading providers like IIFL, Kotak Mahindra Bank, SBI, and Edelweiss Capital offer a loan-to-valuation ratio of up to 50%.

Doctors and hospital owners can access funds by opting for a Loan Against Hospital Properties. HDFC Bank, Kotak Mahindra Bank, Edelweiss Capital, Reliance Capital, IIFL, and SBI offer loans with a loan-to-valuation ratio of up to 50%.

Banks and NBFCs provide Loan Against Property options for properties used as private schools or colleges. Access funds with a loan-to-valuation ratio of up to 50%.

Documents Required

Document TypeRequired Document
Proof Of Identity And Residence
  • Aadhaar Card, PAN Card, Passport, Driving Licence. PAN Card issued in India is no longer considered a valid proof of identity.
Proof Of Income
  • Income documents (Financial & ITR) not required
  • Last 6 months’ Bank Account Statements, having rental credit
  • Last 6 months’ Bank Account Statements, for all other operating bank accounts.
Others
  • Lease Agreement papers
  • Duly signed Application Form
  • Photographs.

Document TypeRequired Document
KYC Documents Required for Loan Against Property
  • Identity, Signature & Age proof –  PAN Card/Passport/Aadhaar Card/ Voters ID
  • Residence proof- Passport/Aadhaar Card/Bank statement/ Utility Bills/ Ration Card
  • 2 photographs
Loan Against Property Application FormsCompletely filled and duly signed Loan Against Property application formsof the Bank/NBFC
Income Documents Required for Loan Against Property
  • Salary Slips- latest 3 months
  • Form No.16 – Latest 3 years
  • ITR- Latest 3 years
  • Appointment letter- if changed job in last 12 months
  • Promotion Letter- if received any promotion recently
  • Salary account Bank statement- for latest 12 months
  • Employers identity card for
Loan DetailsSanction letter and repayment track/statements of all the running Loans and cards
Other Documents Lenders may ask for some more documents based on your financial and professional profile

Document TypeRequired Document
KYC Documents Required for Loan Against Property
  • Identity, Signature & Age proof –  PAN Card/Passport/Aadhaar Card/ Voters ID
  • Residence proof- Passport/Aadhaar Card/Bank statement/ Utility Bills/ Ration Card
  • 2 photographs
  • Business Entity- Licenses required to do business, PAN Card  
Loan Against Property Application FormsCompletely filled, stamped and duly signed Loan Against Property application formsof the Bank/NBFC
Income Documents Required for Loan Against Property
  • Financial Statements- Latest 3 years Income tax returns, Computation of Income, Balance Sheet with all schedules, Audited Reports (if applicable)
  • Shop & Business establishment certificate
  • Net Worth Statements and business profile
  • MOU&AA- for a private limited company
  • Partnership deed- for a partnership firm
  • LLP Agreement – for LLP firms
  • Financial statements of Partners/ Directors 
  • GST returns
  • Advance tax returns
Loan DetailsSanction letter and repayment track/statements of all the running Loans and cards
Other Documents Lenders may ask for some more documents based on your financial and professional profile