Maximizing Benefits: Lease Rental Discounting with LRD Loans
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Lease Rental Discounting (LRD) loans offer property owners a fairly attractive financing option. These loans are for property owners who want to secure funds while still maintaining ownership of their properties. Therefore, this feasible financial solution provides the dual benefits of liquidity and asset retention. As a result, it allows property owners to access funds while enjoying the rental income generated by their properties. There are several benefits to LRD loans, making them a feasible choice for property owners.
Benefits Of Lease Rental Discounting Loans
Easy Access to Funds
LRD loans have provided property owners with a fantastic way to profit. By choosing LRD loans, property owners can secure financing.
Longer Loan Tenures
The benefits of LRD loans include ample time to repay the loan. The LRD loan tenure ranges from 5 to 15 years.
Lower Interest Rates
Lease Rental Discounting loans typically come with lower interest rates. This feature makes them a cost-effective borrowing option for property owners.
End-Use Flexibility
It allows property owners to utilize the raised funds for various purposes, including property buying, business growth and development, modernization projects, and more.
Tax Advantages
Property owners can benefit from tax advantages on the interest paid for LRD loans. The interest can be deducted from the rental income earned on the property, resulting in potential tax savings.
How To Obtain An LRD Loan
Applying for an LRD loan can be done offline or online. Most banks offer online application facilities, allowing applicants to submit the necessary documents online. Alternatively, applicants can visit the bank branch, fill out the application form properly, and submit the required documents in person.
Lease Rental Discounting Loan By Indian Banks
Several banks in India offer LRD loans with varying terms and conditions. Here are some examples:
| Bank | Loan Amount | Tenure | Rate of Interest |
| ICICI Bank | Up to Rs. 3 crores | Up to 15 years | 10.8 to 12.0% p.a. |
| Axis Bank | Starting from Rs. 5 Lacs | Up to 9 years | 9.90 to 10.30% p.a. |
| SBI Bank | Starting from 10 lacs | Up to 15 years | 8.35 to 13% p.a. |
| Bajaj Finserv | Up to Rs. 5 crore | Up to 13 years | 9.00 to 14.00% p.a. |
| PNB Housing Finance | Up to 80% | Up to 10 years of remaining lease | 8.99 to 11.85% p.a. |
Conclusion: Leverage LRD Loans To Fuel Business Expansion
Lease Rental Discounting Loans are excellent opportunities for property owners to unlock the potential of their rental income. With lower interest rates, longer loan tenures, and tax advantages, LRD loans offer a secure and flexible financing solution.
FAQs
Q: What are the eligibility criteria for lease rent discounting?
A: Any resident or non-resident Indian or a statutory body such as a company, partnership firm, or proprietorship business can apply for an LRD.
Q: Do I need a co-applicant for the lease rental discounting application?
A: Applying for an LRD loan with a co-applicant is not a necessary mandate. However, you will require a co-applicant if your income or credit score is low.