Kotak Bank

Lease Rental Discounting

With the help of Lease Rent Discounting (LRD) you can borrow against the future rent receivables from your properties. This option has been developed considering the growth potential of real estate across the country, especially in metro cities and urban centres.

Lease Rent Discounting (LRD) is one of the loan schemes offered by banks and financial institutions under which an applicant obtains loan against his/her leased property. Under LRD, the borrower pledges the future rental earnings from the leased property to the bank for loan repayment. LRD is typically offered against commercial properties.
LRD is particularly beneficial for the builders/developers who make a huge investment in raising a commercial property for rent/lease purposes. The investments of the builders are in a way locked as the returns are obtained only in the form of rentals. Thus, they opt for LRD from banks by pledging their future rentals from the property. Banks also ensure that the future rental earnings from the property are secured before offering LRD.
The various factors that a bank keeps in mind while offering LRD are:
Profile of the lessee
Credit worthiness of the lessee in terms of rent paying capacity
Location of the property with regards to factors such as growth prospects, presence of other industries, civic amenities, etc.
One of the most important points that a lender keeps in mind is that in no way it should be facilitating the conversion of black money into white through LRD
The eligibility of a loan under LRD is calculated by taking 70-75% of the net rental income and dividing it by per lakh EMI of the tenure of left over years in the lease rent agreement. Lenders normally open an Escrow account along with the applicant. The rental/lease income is credited into this account and EMIs are deducted out of it.
Metcon is associated with almost all the renowned Pvt Banks and Top of the line NBFCs. We are in a position to give the best deal in terms of interest rates, the funding proportion and service our every Individual who is looking for Loans related to Business, Home, Mortgage, Car etc. We, at Metcon, are committed to maintain a 100% loan conversion ratio with all our expertise and experience, spreading smiles amongst our clients.

Entire trade & financial requirements of small & medium businesses through comprehensive product offerings.
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Customized Solutions & Advisory Services: We review business requirements based on overall performance and their expansion plans. The relationship managers and the credit team would focus on understanding the business model and related industry dynamics with the customer. Effort is made to understand how the business has grown and what plans the promoters have. The strength of the team is in understanding the needs of the customer and customizing a solution for him. We also add value to the relationship by offering advisory services and financial restructuring solutions to our customers.
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audited financial of the company and the group companies along with schedules for the last three years
Provisional financials along with schedules (In case audited are not ready)
Income Tax return of Director and entity for the last 3 years
Bank statements for the last 6 months
Copy of Sanction letter in case customer already has limits with other banks
Partnership deed/MOA/Trust deed
PAN of Company & Directors
In case of Term Loan, detailed project report
In case of rent discounting, agreement copy of the properties
Last 6 month data of sales, purchase, debtors, creditors & inventory
Working CapitalTrade ServicesLong Term Financial NeedsCash Credit / OverdraftLetter of CreditTerm LoanWorking Capital Term LoanBank GuaranteeLoan Against Property Lease Rent Discounting

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9594111161 / 9967111161
504, 5th Floor Suchita Business Park,
Raigad Chowk, Station Road, Ghatkopar (E), Mumbai 400 077

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