Lease Rental Discounting (LRD): Overview
Lease Rental Discounting (LRD) is a financing solution for owners of leased commercial properties, enabling them to unlock funds against their rental income. If your property is generating steady rent through a valid lease, you can leverage these future inflows to access funds today, without selling the asset. This allows you to continue earning from your property while meeting your funding requirements.
At Bajaj Housing Finance, you can avail of loans starting from Rs.5 Crore*, with higher sanctions based on your rental profile and financial standing. Repayments are structured in line with your rental inflows, making it a practical way to access liquidity while maintaining cash flow stability.
Understanding Lease Rental Discounting
LRD allows property owners to convert future rental income into immediate capital. The loan is structured around the lease tenure, rental terms, and stability of income, ensuring that repayments remain aligned with the cash flows generated by the property.
This financing solution is typically suited for income-generating commercial assets, where long-term lease agreements and consistent rentals provide visibility and predictability. It enables borrowers to unlock value from their property while retaining ownership and benefiting from ongoing rental income.
Why Choose an LRD from Bajaj Housing Finance
Bajaj Housing Finance offers LRD solutions backed by a strong and diverse portfolio of commercial real estate assets. Our product portfolio includes financing for IT and office spaces, industrial properties, and warehousing facilities, enabling us to cater to a wide range of funding requirements.
We work with a broad client base, including high-net-worth individuals (HNIs), developers, landowners, global private equity firms, listed REITs, and sovereign funds. The leased assets we finance are typically backed by reputed tenants, including leading Indian corporates, retail brands, and multinational companies, often under long-term lease agreements.
This combination of strong asset quality, credible tenants, and structured financing allows us to offer reliable, scalable funding solutions for business expansion, investments, and other corporate needs.
Lease Rental Discounting: Features and Benefits
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.
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.
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.
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.
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.
Lease Rental Discounting: Eligibility Criteria
Bajaj Housing Finance offers Lease Rental Discounting solutions to help applicants meet large funding requirements. To avail of this facility, applicants must meet certain eligibility criteria so that the leased asset and its rental income can suitably support the proposed loan structure. Among the key eligibility criteria:
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The applicant must have a leased commercial asset backed by a long-term lease agreement.
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The applicant must have the ability to showcase a valid and regular source of income from tenants or lessees.
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The applicant’s net rental receipts must be discounted up to 90% to accommodate future EMI payments.
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The applicant should have stable lease rental cash flows generated through long-term lease agreements with reputed tenants.
Lease Rental Discounting: Documents Required
Once you meet the eligibility criteria for a Bajaj Housing Finance Lease Rental Discounting loan, the sanction and disbursal process is designed to be quick and seamless. To proceed, certain details will be validated as part of the loan assessment.
You may be required to submit supporting documents*** to verify these details, including:
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Application form
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Recent photograph of partner/director
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Mandatory documents such as PAN Card or Form 60
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Any one identity proof - Voter's ID Card/Driving Licence/job card issued by NREGA/Aadhaar Card
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Signature proof
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Certificate of incorporation
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IT returns, balance sheet, and P&L account statement for the last 2 years
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Bank account statements for last 6 months
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Partnership Deed
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MOA/AOA
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Lease Deed/Leave and Licence 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.
| Type of Fee | Charges Applicable |
|---|---|
| Processing Fee | A nominal fee is charged at the application stage to cover various loan processing costs. |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
EMI Bounce Charges
| Loan Amount (in Rs.) | Charges (in Rs.) |
|---|---|
| Up to Rs.15 Lakh | Rs.500 |
| More than Rs.15 Lakh and up to Rs.30 Lakh | Rs.500 |
| More than Rs.30 Lakh and up to Rs.50 Lakh | Rs.1,000 |
| More than Rs.50 Lakh and up to Rs.1 Crore | Rs.1,000 |
| More than Rs.1 Crore and up to Rs.5 Crore | Rs.3,000 |
| More than Rs.5 Crore and up to Rs.10 Crore | Rs.3,000 |
| More than Rs.10 Crore | Rs.10,000 |
Interest Rate for Lease Rental Discounting (Floating)
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Lease Rental Discounting | 7.00%* to 11.00%* |
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.
Prepayment and Foreclosure Charges
- Floating rate loans to individuals
- Floating rate loans to Micro & Small Enterprise (MSE) borrowers***
| Particulars | Term Loan | Flexi Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part Prepayment Charges | NIL | NIL | NIL |
| Full Prepayment Charges | NIL | NIL | NIL |
- Floating rate loans to non-individuals (other than MSE borrowers) for business purposes
- Fixed rate loans (all borrowers, including individuals)
| Particulars | Term Loan | Flexi Loan | Flexi Hybrid Loan |
|---|---|---|---|
| Part Prepayment Charges | 4%* on Part Payment Amount | NIL | NIL |
| Full Prepayment Charges | 4%* on Principal Outstanding | 4%* on the available Flexi Loan Limit | 4%* on Sanctioned Amount during Flexi Interest Only Loan Repayment Tenure; and 4%* on the available Flexi Loan Limit during Flexi Term Loan Tenure |
*Not including GST
***Micro Enterprises & Small Enterprises (“MSE”) shall have the same meaning as defined under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, as amended from time to time.
Note: For more details regarding the applicable fees and charges, click here.
Note: Borrowers are requested to kindly refer to the executed Key Fact Statement / Sanction Letter, Most Important Terms & Conditions and Loan Agreement for applicable part payment and foreclosure charges.
*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.
