LEASE RENTAL DISCOUNT (LRD)
WHAT IS LRD :
Lease Rental Discount (LRD) consideration is between the borrower who owns the premises, the tenant who has rented the said premises or taken on lease and the bank or financial institute or Corporate. The rent is considered as fixed income over a stipulated time i.e. Lease or rent period or tenure. The agreement is between the borrower and lender and the major term of repayment is the rent which is directly deposited with the lender and not with the borrower. The Borrower is sanctioned a loan based upon the rent to be collected over the period of lease.
WHAT IS FRR :
It is a loan that you can take against the future rental income of your property.
This type of loan is generally available to individuals who own a property that has been rented out to blue chip companies, multinational companies and public sector companies. However, certain banks offer this loan only to those individuals who own commercial property.
Before offering this loan, the banks will take care to ensure that he following conditions have been met:
- The property has been rented out.
- The property has been built according to the plan approved by the local government authorities.
- There is a confirmed lease agreement between you and your tenant.
- You and your tenant are worthy of giving credit.