If you own a commercial property that is leased out to a corporate with a fixed rent receivable, you can avail a loan against your annual rental income. It is a term loan offered against rental receipts derived from lease contracts with corporate tenants. The loan is provided to the lesser based on the discounted value of the rentals and the underlying property value. Rent receipts are payable by the tenant directly to an escrow account with Standard Chartered Bank. The underlying tenanted property, which may be commercial property or quasi-commercial property, will be taken as collateral. No plot, self-construction or under-construction properties will be allowed.
It is another method to obtain finance from bank or other financial institute or lending institutes. Lease Rent Discount (LRD) consideration is between the borrower who owns the premises, the tenant who has rented the said premises or taken on lease and the bank or financial institute or Corporate. The rent is considered as fixed income over a stipulated time i.e. Lease or rent period or tenure. The agreement is between the borrower and lender and the major term of repayment is the rent which is directly deposited with the lender and not with the borrower. The Borrower is sanctioned a loan based upon the rent to be collected over the period of lease.
Access to cash -
You can borrow up to 70% of the market value of your property with our Lease Rental Discounting loan
High loan amounts -
High loan amounts up to Rs. 250 crores
Long-term solution -
Under the Lease Rental Discounting loan, you can borrow money for up to 12 years
Attractive interest rates -
Highly competitive interest rates for the Lease Rental Discounting loan
The product is designed to finance the business needs of: