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LEASE RENTAL DISCOUNTING

Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rental cash flows from the property and its current market value.​


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​​​​​​​Is Lease Rental Discounting (LRD) for you?

The LRD term loan is a gainful financial option to explore if you require a short-term loan for your personal or professional needs. You may opt for an LRD loan if you own residential or commercial or warehouse premises and if your premises is generating rental yields. Your leased property must have a registered agreement between yourself and the lessee.​

​​​​​​​Why Lease Rental Discounting (LRD)?

We offer Lease Rental Discounting (LRD) to property owners who have leased their owned premises to receive rent. The LRD eligibility is calculated on the basis of the discounted rental cash flows of the property, and its current market value. It is a term loan that can be used for both personal and professional needs.

Features of Lease Rental Discounting

  • Collateral: Residential, commercial and warehouse property under lease
  • Property credentials:Clear title,
  • Tenure: Up to 15 years
  • Minimum loan amount: Rs 50 lacs
  • Maximum loan amount: as per norms
  • Benefits: Attractive interest rates, loan transfer from other institutions with top up facility, faster processing

Please ask us for required documents and escrow account process at the time of application.

STANDARD SCHEDULE OF CHARGES

The following standard schedule of charges that are applicable on your loan are mentioned in the table below.

It is subject to change from time to time on discretion of ABFL. Any GST as applicable on the Charges as per below schedule shall be payable by the Borrower.
Transaction Charges
Fore-Closure Charges: Standard: 4% of prevailing principal outstanding amount plus amount of principal part paid during preceding 12 months. Applicable GST/Govt. Taxes extra. For the subject loan application: Please refer page no. 1 and/or 2 of this sanction letter. Any foreclosure charge offered less than standard charges will be applicable only in case of NIL bounce in applicants’ any of the loans with ABFL during the currency of the loan granted vide this sanction letter; Standard charge mentioned here will be applicable otherwise.
Part Prepayment Charges Standard: 25% of the principal outstanding as on 1st April of the given financial year will be allowed to be part paid without any charges. 4% + GST/Govt. Taxes will be applicable on part payment in excess of 25% in given financial year. For the given application: Please refer page no. 1 and/or 2 of this sanction letter. Any part prepayment charge offered less than standard charges will be applicable only in case of NIL bounce in applicants’ any of the loans with ABFL during the currency of the loan granted vide this sanction letter; Standard charge mentioned here will be applicable otherwise.
All Individual loans (where all applicants and co-applicants on the loan structure are individuals only, i.e no entity is on loan structure) No foreclosure charges applicable
Other Charges: Default Penal Interest Rate / Non Conformance with any covenants / stipulated conditions (at the sole discretion of ABFL) 24% p.a. i.e. 2% per month
Cheque Return Charges/ECS/SI/NACH failure charges Rs 1000/- per instance
Accrued Interest As applicable based on actual delayed status or as communicated by the lender from time to time
Cancellation Charges if any 4.00% of loan amount sanctioned
Closure charges for OD/LOC (Standard charges) 4% of prevailing limit at the time of closure
Request for copies of documents of any collateral held with ABFL per instance Rs 2500/- per instance
Duplicate Statement/ Repayment Schedule / FC statement / any other document held with ABFL request FC Statement: Rs. 1500/- per instance
RTR: Rs 1000/- per instance
Other statements: Rs. 200/- per instance
GST extra as applicable
Charge For Exchanging PDCs, Security Cheques (Per Set) / ECS /NACH Rs 1000/- per instance
CIBIL/Credit report retrieval fee Rs 50/- per instance for Consumer and Rs. 500/- for Commercial CIBIL/Credit report
Loan Re-schedulement (on request from applicants, approval to be at sole discretion of ABFL) charges per instance 2% of the prevailing loan outstanding
NOC issuance charges per instance Rs 1000 + GST
Swap/Conversion Charges (Fixed rate to floating and vice-versa, at sole discretion of ABFL) (on request from applicants, approval to be at sole discretion of ABFL) per instance 3% of the prevailing loan outstanding
Property swap charges (on request from applicants, approval to be at sole discretion of ABFL) 3% of the prevailing loan outstanding
  • Stamp Duty
  • Legal and other statutory charges
  • Insurance Premium
  • Creation charge with ROC
As per actual, where applicable

Next steps...

If you want to apply for Lease Rental Discounting loan, download the application form.

Our Relationship Manager can meet you at your convenience.

Do you have questions?

Call 1800 270 7000 or write us at care.finance@adityabirlacapital.com. ​

Toll free (Within India):

1-800-270-7000

Email on:

care.finance@adityabirlacapital.com

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