Lease Rental Discounting: Overview
Lease Rental Discounting (LRD) option is available for eligible applicants at attractive interest rates. Bajaj Housing Finance offers this facility to avail funds for business expansion & general corporate purposes against the borrower’s rental income. Borrowers can avail funds starting from Rs.5 Crore* and get loan sanctions worth a higher amount, basis their rental profile and financial standing. Our eligibility criteria and documentation asks are minimal, and the funds will be credited to the borrower’s account in 10 to 15 days from the time of loan application.
Lease Rental Discounting (LRD): Understanding LRD
Bajaj Housing Finance offers an array of loan products to customers, catering to their various needs. Lease Rental Discounting is a credit tool that finances commercial properties, such as office spaces, industrial properties, and warehouses. This product is specifically designed for properties with established lease rental cash flows backed by long-term agreements with reputed tenants, ensuring secure and predictable returns through an escrow mechanism.
Our Lease Rental Discounting solutions cater to the complete lifecycle of commercial real estate. The product portfolio includes financing for IT and office spaces, industrial properties, and warehousing facilities, offering comprehensive solutions to high-net-worth individuals (HNIs) and developers.
We are working with HNIs, developers, landowners, global private equity firms, listed Real Estate Investment Trusts (REITs), and sovereign funds. With a lessee base comprising major Indian corporations, retail tenants and multinational companies, our LRD offerings empower commercial property owners and developers to achieve their growth aspirations with confidence and efficiency.
Lease Rental Discounting: Features and Benefits
Sizeable Loan Amount
Bajaj Housing Finance offers substantial loan sums through Lease Rental Discounting to eligible applicants, starting at Rs.5 Crore* and going higher – based on the applicant’s needs, rental income, and discounting ratio.
Competitive Rate of Interest
Interested applicants can benefit from the Bajaj Housing Finance Lease Rental Discounting features at competitive interest rates based on the applicant’s profile and eligibility.
Long Term Loans
Applicants can get a credit line through Lease Rental Discounting, ranging up to 13 years – allowing them substantial time to use and repay the funds without any hassles.
Commercial Construction Financing
Lease Rental Discounting can be availed of to address big-ticket financing needs such as real estate construction and business expansion. This feature extends to those leasing out commercial office spaces or industrial and warehouse spaces.
Speedy Turn Around Time
Applicants whose loan applications are approved may get the funds in their account in just 7 to 10 days from the time of approval, ensuring that there is no delay in their plans for credit utilisation.
Asset Class
Our Lease Rental Discounting caters to a wide range of asset classes such as commercial offices, warehouse or warehousing Parks, industrial space, retail space or malls, and IT hubs. This offering is tailored to support high-value commercial properties that generate stable lease rental cash flow. By prioritising 'Grade A' assets and reputable lessees, we deliver secure and efficient financing solutions customised to address our clients' specific requirements.
Lease Rental Discounting: Eligibility Criteria
Bajaj Housing Finance offers competitive Lease Rental Discounting loans to applicants who need funds for big-ticket expenses. One must be able to meet the eligibility criteria before they avail of the loan. The eligibility asks for Lease Rental Discounting are direct, hassle-free, and easy to meet, making it simple for those in need to get the funds they require. The following are some of the eligibility criteria that you need to meet:
- Applicants must have a leased asset with a long-term agreement.
- Applicants must be able to show a valid and regular source of income from their tenants and lessees
- Applicants’ net rental receipts must be discounted up to 90% to accommodate their future EMI payments
- Applicants should have stable lease rental cash flows generated from long-term lease agreements with reputable tenants.
Lease Rental Discounting: Documents Required
Once you meet the Bajaj Housing Finance Lease Rental Discounting eligibility criteria, the process of loan sanction and disbursal is easy and fast. Before that, you must submit all the required documents to us to enable verification and loan sanction.
Some of the documents*** requested include:
- Application form
- Recent photograph of partner/director
- Mandatory documents such as PAN Card or Form 60
- Any one identity proof - Voter's ID Card/Driving License/job card issued by NREGA/Aadhaar Card/PAN Card
- Signature proof
- Certificate of incorporation
- IT returns, balance sheet and P/L account statement for the last 2 years
- Bank account statements for last 6 months
- Partnership deed
- MOA/AOA
- Lease deed/leave and license agreement
***Additional documents may be required during the time of loan processing.
Lease Rental Discounting: Interest Rates, Fees, and Charges
When you avail of a Lease Rental Discounting loan from Bajaj Housing Finance, you get the benefits of attractive interest rates along with transparent fees and charges. To know about the fees and charges applicable on the loan, click here.
Interest Rate for Lease Rental Discounting (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Lease Rental Discounting | 8.35%* to 14.00%* |
Disclaimer
The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness and repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, secured or unsecured loan being sought, ticket size/quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared and verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of the past portfolio, and hence is subject to change.
For a complete list of our interest rates, click here.
*Terms and conditions apply
Lease Rental Discounting: FAQs
Bajaj Housing Finance offers a sizeable loan amount under corporate Lease Rental Discounting, starting from Rs.5 Crore* and going higher, based on the applicant’s rental profile and financial standing.
Bajaj Housing Finance offers a Lease Rental Discounting loan tenure of up to 13 years, depending on the applicant’s eligibility. The loan terms offered to you will depend on the specifics of your loan application.
The Internal I-FRR is a benchmark reference rate internal to the organisation. It is determined based on the market conditions and the cost of funds for the company. It changes depending on various external factors and economic conditions, at the organisation’s discretion.
*Terms and conditions apply.
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