Lease Rental Discounting Loan in Bangalore, India
Overview of Product
Lease Rental Discounting Loan in Bangalore, India:
Lease rental discounting (LRD) is a financing option for property owners in Bangalore seeking to access funds upfront based on their future rental income. It functions similarly to factoring, but instead of invoices, the receivables are the lease payments owed by tenants.Here’s how it works:
- Future Rentals as Collateral: Instead of traditional collateral, LRD loans use the discounted value of your future lease payments to secure the loan.
- Banks Assess Eligibility: Lenders typically look for properties with strong corporate tenants with a history of on-time payments and long-term leases to ensure a steady stream of income.
- Discount and Loan Amount: Banks account for the time value of money and deduct a discount from the total future rental income to determine the loan amount.
- Three Parties Involved: The agreement involves you (the borrower), the lender, and the tenant who continues making rent payments directly to the lender during the loan term.
Is Your Property Eligible?
Several factors influence eligibility for lease rental discounting loans. Here are some key points to consider:- Tenant Credibility: Strong financial standing and a history of timely rental payments from your corporate tenant are crucial.
- Lease Agreement Strength: Long-term leases with a lock-in period (matching the loan tenure) are preferred by lenders.
Benefits of Lease Rental Discounting (LRD) Loans:
- Access funds quickly without selling your property.
- Use the money for various purposes, like business ventures, renovations, or personal needs.
- Long loan terms (up to 15 years in some cases) for manageable repayment.
Why Choose Grab Capital ?
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Eligibility Criteria for Lease Rental Discounting Loan in Bangalore, India
Our Lease Rental Discounting eligibility criteria at Grab Capital are thoughtfully crafted to simplify the application process, ensuring a hassle-free experience for you.
- You should be aged between 24 to 65 years
- Should be Salaried or Self Employed with rental income
- Credit score should be above 750
Documents required for Lease Rental Discounting Loan in Bangalore, India
At Grab Capital, we prioritize your convenience. Our Lease Rental Discounting application process is streamlined, requiring minimal documentation.
- Application Form
- ID Proof
- Income and Financial Documents
- Lease Agreement Paper
- Bank Account Statement of Last 6 Month
- Photograph
Note: Please be aware that the list of eligibility and documents mentioned above for the fund is not exhaustive. Additional documentation may be necessary as part of the application and processing requirements.
Ready to Secure Your Funds?
Your Eligibility Is Confirmed, It’s Time to Apply for the Funds You Need to Achieve Your Financial Goals!
FAQ's
Frequently Asked Questions
Lease rental discounting is a loan option for property owners in Bangalore with a tenant and a lease agreement. The lender provides a lump sum based on the discounted value of your future rental income stream, using Grab Capital as a facilitator to streamline the process.
Lease Rental Discounting (LRD) works by allowing property owners, who have leased their properties to tenants, to receive an immediate lump sum payment from a lender.
LRD is for income-generating properties, offering property owners an immediate lump sum payment by discounting future rental income, while tenants maintain regular lease payments.
An LRD loan is a term loan secured by your property’s rental income. This allows you to access funds upfront while your tenant continues to make rent payments.
Eligibility typically requires property ownership in Bangalore, a stable tenant with a valid lease agreement, and a property with good market value. Grab Capital can help you understand the specific requirements of lenders.
Interest rates on LRD loans can vary depending on the lender, loan amount, and property details. Grab Capital can help you get competitive rates from various lenders in Bangalore.
Grab Capital can simplify the process by:
- Matching you with suitable lenders in Bangalore
- Streamlining communication and paperwork
- Helping you understand loan terms and eligibility requirements
LRD loan charges typically include:
- Interest rate: This is the cost of borrowing the money, expressed as a percentage of the loan amount.
- Processing fee: A one-time fee charged by the lender to cover the cost of processing your application.
- Documentation fee: A fee for preparing loan documents.
Valuation fee: In some cases, the lender may require a property valuation to assess the loan amount.
The tenure for LRD loans typically ranges from 2 to 15 years. The exact timeframe will depend on the lender’s policy and your specific situation.