Lease Rental Discounting: Overview
Lease Rental Discounting (LRD) options are available with Bajaj Housing Finance at attractive interest rates for eligible applicants. The product allows for borrowing funds for real estate construction and business expansion against the borrower’s rental lease and income. Borrowers can avail of funds starting from Rs. 5 Crore* and get loan sanctions worth higher, 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 7 to 10 days from the time of loan approval, upon successful verification.
Lease Rental Discounting: 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 falls under our commercial lending branch, where loans are extended for commercial office spaces, industrial spaces, and local warehouses.
Lease Rental Discounting is extended to a borrower discounting their fixed monthly rental income. If you have a property leased out that fetches a fixed monthly income, we sanction the loan amount after discounting up to almost 90%* of the rental income - using it as your EMI payment.
In such situations, the rent paid by the tenants (or lessee) is deposited to an ESCROW account that we access to adjust the EMI payment before returning the balance to you. The ESCROW account is maintained with a third-party bank, and you cannot withdraw funds from it yourself. This process ensures that you (the lessor) do not have to worry about making the monthly payments on time, as the EMIs are automatically deducted from the account.
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, which come 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 with no hassles. 
Commercial Construction Financing 
Lease Rental Discounting can be availed of, to address big-ticket financing needs like real estate construction or 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 money 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.
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.
- Applicants must be residing citizens of India 
- Applicants must be at least 25* years old at the time of the LRD loan sanction 
- Applicants must have a leased property that is a commercial or industrial space, or a warehouse 
- 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 
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 be able to submit all the required documents to us to enable verification and the final loan sanction. 
Some of the documents requested include:
- Application form
- Photograph of partner/director
- 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
Note: This list is indicative. Additional documents may be requested during loan processing.
Lease Rental Discounting: 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. The fees and charges applicable on the loan are as follows:
Interest Rate for Lease Rental Discounting (Floating)
| Loan type | Effective ROI (p.a.) |
|---|---|
| Lease Rental Discounting | 7.75%* to 13.00%* |
Disclaimer
- Bajaj Housing Finance charges an additional rate, called ‘spread,’ over the benchmark rate to arrive at the final lending rate. The spread varies on the basis of various parameters, including the bureau score, profile, segments, and approval from competent authorities, among others.
- BHFL may grant loan below or above the documented rate of interest (up to 100 basis points) in deserving cases on exceptional basis under the powers of the competent authority vested with them.
- The above benchmark rates are subject to change. Bajaj Housing Finance will update the current benchmark rates on this website in the event of a change.
Lease Rental Discounting Foreclosure Charges
- For part-prepayment to be considered, applicants must make a payment equivalent of at least 1 EMI or higher.
- Part-prepayment charges are not applicable on Flexi interest-only loans and Flexi term loan facilities.
Lease Rental Discounting: FAQs
Bajaj Housing Finance offers a sizeable loan sum under corporate Lease Rental Discounting, starting from Rs. 5 Crore* and going higher, based on the applicant’s rental profile and financial standing. 
The eligibility parameters of Lease Rental Discounting are easy-to-meet and simple. 
- They must be a residing citizen of India 
- They must be at least 25 years old at the time of the loan sanction 
- The leased property must be a commercial or industrial space, or a warehouse 
- They must be able to establish a valid source of income from their tenants and lessees
- The net rental receipts must be discounted up to 90% to accommodate their EMI payments 
In the case of joint ownership, all co-owners of the property will have to be the co-applicants for the loan.
Bajaj Housing Finance offers a Lease Rental Discounting loan tenor up to 13 years, depending on the applicant’s income and financial profile. The loan terms offered to you will depend on the specifics of your loan application.
The repayment process for Bajaj Housing Finance LRD loans is particularly easy and hassle-free, as the payments are made through an ESCROW account. This account is maintained with a third-party bank, where the lessee’s rent income is deposited every month. The EMI amount is adjusted from the deposits per schedule before returning the remaining amount to the borrower. 
The Internal I-FRR is a benchmark reference rate internal to an 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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