Lease Rental Discounting
Lease Rental Discounting is a product which is used to borrow loans using rental receipts as collateral. Mansa Mata Finance will examine long-term cashflow and provide the loan based on the exact amount. This loan is then payable by the rents promised.
Lease Rental Discounting (LRD) loans take into consideration the rental properties being owed a fixed amount of rent every month. Tenants enter into a lease agreement with the owner of the property. This agreement specifies the regular payment amount which we commonly identify as rent. The property owner can then use rental receipts prepared for the duration of the lease as collateral while applying for a loan.
It is a balanced tool for individuals and companies looking to diversify their investments without putting in a large sum of investment.
FEATURES
- Lease Rental Discounting offers convenient access to considerable funding
- Individuals can avail such advances for a maximum tenure of 11 years subject to the remaining lease period of the property in question
- Pay interest only on the funds utilised from the total sanctioned loan amount
BENEFITS
- Business Expansion: The property owner can further invest in more properties using the loan sanctioned in the form of Lease Rental Discounting
- Balanced Cash Outflow: The borrower will benefit from a balanced cash flow as EMIs are taken care of using the steady flow of rent money owed by tenants. The money earned by deploying the funds made available through the loan provides further revenue through other investments
- Low Capital Expenditure: The capital gained from the bank loan helps in reducing personal exposure and expenditure if you wish to invest in more properties or businesses
- Salaried individuals, professionals with an established practice, and self-employed individuals are eligible for LRD
- In case of non-individual entities, any partnership firm, private and public limited enterprises as well as proprietorship firms are eligible
- However, the properties should not be or have been leased to Social Infrastructure projects such as Schools, Colleges, Orphanages, Hospitals, Old age homes, Nursing homes etc.
- Application form
- Basic KYC Documents
- Copy of Lease agreement documents
- Loan agreement
- Passport Size Photograph
- IT returns and Balance Sheet
- How do you determine the loan eligibility?
Valuation of property (Fair market value) i.e.up to 55% of the value of the commercial property and existing rent from the property being mortgaged i.e. up to 90% of the net rental receipts are considered. - If a property is jointly owned by an individual and his/her relatives, can he/she take a loan against the property?
Yes, however, all the co-owners of the considered property need to sign the loan agreement as co-applicants to the loan. - What will be my approved tenure for my Corporate Lease Rental Discounting Loan?
The loan can be sanctioned for max tenure of 11 years subject to the residual lease period. - How do I repay the Loan? Your EMI will be debited automatically from an ESCROW account where the proceeds from the rent will be deposited by your lessee.