At A Glance
- Purpose
- Raise funds against rental income from an eligible leased property*
- LTV
- Up to 70%*
- Property Accepted
- Commercial / Specialised Properties*
- Eligible Applicants
- Salaried / Self-Employed*
- Lease Requirement
- Minimum 3 Years outstanding lease tenure*
The Short Version
What Lease Rental Discounting actually does for you.
Lease rental discounting gives you a lump sum today against the rent you will receive from a registered lease on commercial or retail space. The tenant's rent is used to pay the EMI, so your own cash flow is not needed for it.
What's included
- For registered commercial and retail leases
- Pricing may be better when the tenant is a well-known company
- Rent routed through an escrow arrangement
- Refinance of an LRD loan you already have
Do you qualify?
- A registered lease with sufficient residual tenure to run
- A dependable tenant with an uninterrupted rent-payment record
- Property title held in the borrower's own name
- Resident Indian owners of a let-out commercial property can apply
- Commercial property, such as offices, shops or warehouses, that is already let out
- A clean credit history; a CIBIL score of around 750 or above may help you get better terms
Which One Are You
Fees and other charges
Besides interest, a lender may charge a few fees. It helps to know them before you apply, so there are no surprises.
Processing fee
A percentage of the loan amount plus GST, often somewhere between about 0.5% and 2%. For large or project-based loans it is usually agreed with the lender.
Legal, valuation and technical charges
Fees for the lender's legal check, the property or project valuation, and any technical inspection. They depend on the lender and the size of the deal.
Stamp duty and registration
These follow your state's rules and apply when the loan documents and mortgage are registered.
Foreclosure and part-prepayment
Loans taken for business purposes may carry a charge for early closure, often a small percentage of the amount prepaid. Check the terms before you prepay.
These are general guides and every lender sets its own fees. Your expert will share the exact charges in writing before you sign.
Why Growth Capital Services
One conversation, many lenders to compare.
We are a loan consultant, not the lender. We help you compare options from 75+ Banks and NBFCs, prepare your documents, and follow your application through each step.
Important note: Interest rate, loan amount, tenure, charges, eligibility, approval and disbursement depend on the policy of the respective Bank or NBFC, your profile, credit assessment and the applicable terms. Growth Capital Services is a loan consultant and does not lend money itself. The details on this page are for general information.
Run the numbers
Calculators for your Lease Rental Discounting
Try your own figures before you apply — nothing is saved or sent.
Step-by-step guide
Lease Rental Discounting process, step by step.
Lease rental discounting turns future rent into money today. Here is how the loan is set up.
- 1
Share the lease details
Tell us about the property, the tenant, the lease terms and the rent you receive.
- 2
Check the rental income
We review the lease agreement, the tenant's standing and your rent record.
- 3
Match a lender
We approach lenders who finance rentals from this kind of tenant and property.
- 4
Legal and valuation checks
The lender checks the property title and its value, and may verify the lease with the tenant.
- 5
Sanction and disbursal
Once the rent is assigned to the lender, the amount is released.
With GCS, your expert looks at your profile, matches it with suitable lenders, and coordinates with the banks for you. That means less confusion and more confidence when you apply.
Worth Comparing
The rest of Property Finance
So you can weigh Lease Rental Discounting against everything else we arrange in this category before deciding.
Still deciding on Lease Rental Discounting? Ask us directly.
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