Lease Rental Discounting: A Financing Option for Commercial Property Owners

By: Homeloan0 comments


What is lease discounting? Lease discounting is a way to get a loan from a bank using your rental income as a guarantee. The bank looks at your long-term cash flow and gives you the exact amount of the loan. The loan is then paid back with the promised rent. Homeloan4U, the most trusted name in loans gives you lease rental discounting loan at lowest interest.


To determine whether you qualify for the Lease Rental Discount (LRD), the bank will look at several factors, including the value of your property, your ability to pay, other assets you own, the legality and technicalities of your property, and any liabilities that may arise.

How does LRD work?

LRD loans are based on the premise that rental properties are owed a fixed rent. The tenant enters into a lease agreement with the property owner. This agreement stipulates that the tenant must make a regular payment known as rent to the property owner.

The landlord can use the rental receipts generated during the lease agreement as collateral when applying for the loan.

The loan process is simplified as the rent is directly transferred to the lender as an EMI, rather than going to the landlord.

Different banks have their criteria for determining the loan against property. However, on average, the property valuation can be used to determine the loan amount, which can be up to 70%. For availing maximum loan at the lowest interest visit Homeloan4U, the most experts in loans.

Are you eligible for Lease Rental Discounting?

If you are a salaried individual, a professional with a long-standing practice, or a self-employed individual, you are entitled to LRD. If you are a non-individual entity, you are eligible for LRD if you are a partnership firm, a private or public limited company, or a proprietorship firm. Since renting property is the safest investment in the infrastructure business, LRD is an effective way to grow your business while keeping your personal capital investment (PCI) low. LRD is a good tool for both individuals and companies who want to diversify investments without investing a large amount of capital.

Lease rental discounting loans: benefits

LRD loans can provide liquidity to property owners who do not want to sell their properties.

A few benefits of LRD loans are:

Access to funds: LRD loans allow property owners to make money from their rental income and have easy access to funds.

Secured Loans: LRD loans offer secured loans, meaning that the interest rates on the loan are usually lower than the unsecured loans.

Longer Loan Repayment Period: LRD loans typically have a longer loan repayment period, which gives the borrower more time to pay back the loan. LRD loans can have a repayment period of 5 to 15 years.

Leasing Rental Discounting is a flexible financing option that can be used for a wide range of purposes, including:

Expansion of business

Acquiring new properties

Renovating existing properties

Tax benefits: Property owners can take advantage of tax deductions on interest paid on their LRD loans. Interest paid on your LRD loan can be deducted from the rental income you earn on your property.


Lease Rent Discounting (LRD) is a great way for commercial property owners to access funds and leverage their rental income and Homeloans4U is always at your service, when you need it most . It can be used for business expansion or other financial needs. It is a convenient and efficient financing option that keeps property ownership intact.

Related post

Leave A Comment

Social media & sharing icons powered by UltimatelySocial