Lease Rental Discounting (LRD) FAQs

Any salaried, Self employed professionals, Self Employed Businessmen can avail this facility.

Self Employed Professionals include doctors, architect, chartered accountant, cost accountants, practising company secretary, lawyers etc.

Self Employed Business men include traders, distributors, manufacturers, service segment etc.

It can be availed by Non Individuals like Proprietorship firms, Partnership, Private and Public Limited Companies.

One can borrow upto 70% of the value of the property, subject to income eligibility and repayment capacity.

It is computed on the basis of the rentals that is received against the property. It is generally calculated at 70% of gross rental income or 90% of net rental income, whichever is lower.

This facility is granted for a maximum of 10 years(120 months), subject to an age of 65 years in the case of self employed.

All co-owners to the property should become co-applicants. In case of partnership or a company, partners and promoter directors respectively need to be co-applicants.

Rentals payable by the tenant to be directly credited into escrow account with the respective bank. The underlying leased property, which may be commercial or residential property, will be taken as collateral. Under construction projects will not be considered as a security.

Yes. The loan can be prepaid after 6 months from date of disbursal of the loan. However, foreclosure charges are applicable