DCT Multiservices LLP - Your Trusted Financial Partner
Office no 101,102 1st Floor,Mittal chamber building , jm road Shivaji Nagar 411005
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Lease Rental
Discounting

Lease Rental Discounting (LRD)

Unlock the Value of Your Future Rentals

Lease Rental Discounting (LRD) is a specialized product that enables you to encash your current rental cash flows from commercial property and avail a long-term loan facility. The funds can be strategically used for business expansion, meeting immediate capital requirements, or consolidating existing financial obligations.

This facility is ideal for property owners whose assets are leased out to reputable entities like blue chip companies, Multinational Companies (MNCs), Public Sector Undertakings (PSUs), or banks. We ensure thorough due diligence to secure the best loan terms based on your steady rental income.

Finance Up to 90% of Net Rental Income
Long-term loan based on Lease Tenure
Suitable for Commercial Properties with Reputed Tenants
Simple Documentation & Door-Step Service
Lease Rental Discounting Loan

Apply for Lease Rental Discounting Loan

Complete the form below to start your LRD application. Our loan experts will contact you within 24 hours to assess your rental income and guide you through the process.

Key Features & Benefits of LRD

Convert your long-term lease agreements into immediate, liquid capital with our LRD solutions.

Convert Future Rent to Capital

Access a long-term loan facility by leveraging the predictable, discounted value of your future rental cash flows from your leased commercial property.

High Loan-to-Value (LTV)

Get high financing options, often up to 90% of the net discounted rental receivables. Loan amounts can range from ₹15 Lakhs up to ₹10 Crore.

Flexible Repayment Tenure

The loan term is designed to align with your existing lease agreement, available from a minimum of 3 years to a maximum of 10 years.

Repayment via Escrow Account

Repayment is seamless as the tenant pays the rentals directly into a dedicated escrow account with the bank, securing your obligation.

Property as Collateral

The underlying leased property (commercial or residential) is taken as collateral. Only completely constructed properties are eligible for this program.

Part & Full Prepayment Option

You can pre-pay the loan partially (minimum ₹50,000) or fully after 6 months from the date of final disbursement. Foreclosure charges may be applicable.

Who Can Apply for Lease Rental Discounting

LRD loans are available to a broad spectrum of applicants with a leased property and credit-worthy tenants.

Individual Applicants
  • Salaried Individuals (Resident Indians & NRIs) in permanent service with reputed organizations
  • Self-Employed Professionals (Doctors, CAs, Architects, etc.)
  • Self-Employed Businessmen (Traders, Distributors, Manufacturers)
Non-Individual Entities

Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies are all eligible to apply.

  • Proprietors or Partners must be co-applicants
  • Promoter Directors are required as co-applicants for companies
Tenant/Lessee Profile Requirement

The eligibility is primarily based on the stability of the rental income, which means the tenant should be a recognized entity:

  • Public Sector Undertakings (PSUs)
  • Government/Semi-government Bodies
  • Reputed Corporates or Blue Chip Companies
  • Multi-national Companies (MNCs)
  • Banks and Financial Institutions
Key Requirement

The property must be located in metro, urban, or semi-urban areas and must have a confirmed, registered lease agreement in place with a credit-worthy tenant.

Eligibility Factors for Lease Rental Discounting

Your LRD loan eligibility is calculated primarily based on the stability and quantum of your future rental income.

Loan Quantum Calculation

Your maximum loan size is determined by the discounted value of the future rent receivables. Your Equated Monthly Installment (EMI) is capped based on your rental cash flow:

  • EMI can be up to 70% of the Gross Rental Income.
  • EMI can be up to 90% of the Net Rental Income.
  • The lower of the two limits is usually applied.
Property and Lease Essentials
  • Property must be completely constructed.
  • Must be built as per the approved plan from local authorities.
  • A confirmed and registered lease agreement is mandatory.
  • Both the borrower and the tenant must be credit-worthy.
Age and Tenure Restrictions
  • Minimum Loan Tenure: 3 years
  • Maximum Loan Tenure: 10 years
  • Salaried Customers: Age must not exceed 60 years at loan maturity
  • Self-Employed Customers: Age must not exceed 65 years at loan maturity
Co-Applicant Requirement
Joint Application: All co-owners of the leased property must necessarily be co-applicants in the loan application. For a sole property owner, one adult family member is required to sign as a co-applicant.

Required Documents for LRD

Submitting a complete set of documents helps in quick processing and approval of your Lease Rental Discounting loan.

Application & KYC Documents
  • Duly filled Application Form with Photograph
  • Age Proof (PAN Card, Passport, etc.)
  • Residence Proof (Passport, Utility Bills, Ration Card, etc.)
  • Processing Fee Cheque in favor of the bank
Income & Financial Documents
  • Last 3 years Income Tax Returns (self and business)
  • Certified/Audited Profit and Loss Account and Balance Sheets (3 years)
  • Bank Statements (Last 6-12 months) showing rental credits
  • (For Salaried) Latest 3 months salary slips & Form 16 (If applicable)
Property and Lease Documents
  • Photocopy of Title Documents of the Property
  • Approved Building Plan
  • Last 3 years Property Tax Receipt
  • Copy of Registered Lease Deed/Tenancy Agreement
  • Rent Receipts (for the current period)
  • Encumbrance Certificate
Tenant Specific Documents (If required by Lender)

Some banks may require the certified balance sheets or Profit & Loss accounts of the tenant for the last three years for additional due diligence.

Frequently Asked Questions on LRD

Find answers to common questions about Lease Rental Discounting loans

LRD is a loan product that allows property owners to get a long-term loan facility against the future rental receivables from a property that is already leased out. It effectively converts your steady future rental income into upfront, lump-sum capital which can be used for business growth or debt consolidation.

The maximum loan amount is typically the lower of: (1) up to 70% of the property's market value or (2) the amount calculated based on your eligibility. Your EMI for the LRD loan cannot exceed 70% of the gross rental income or 90% of the net rental income. The loan size is usually capped between ₹15 Lakhs and ₹10 Crore.

The loan period for LRD is usually between 3 years and 10 years. The term will be further restricted by the applicant's age: for salaried customers, the maximum age at loan maturity is 60 years, and for self-employed customers, it is 65 years. It also cannot exceed the remaining period of the lease agreement.

Yes. All individuals who are co-owners of the leased property must sign as co-applicants for the loan. If you are the sole property owner, one adult member of your family is typically required to be a co-applicant. For corporate/firm applications, partners or promoter directors must join as co-applicants.

The loan repayment is secured by the property itself (as collateral). Additionally, an escrow account is opened exclusively for the loan. The tenant will be instructed to deposit the monthly rentals directly into this escrow account, from which the bank automatically deducts the EMI.
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