Welcome

  • +91-9537-124 124

    care.f@livanity.com

  • A-504, Rajnigandha Apartment

    VADODARA-390021,GUJARAT,India.

pscDiv1Img1.jpg

Lease Rental Discounting (LRD) is a financial arrangement where a lender provides a loan to a borrower.

Lease Rental Discounting

Lease Rental Discounting is commonly used by property owners, especially commercial property owners, to unlock the present value of their future rental income stream.

The loan amount is determined by discounting the future rental cash flows over the tenure of the lease at a predetermined rate of interest.

The borrower repays the loan through periodic installments, typically over the tenure of the lease agreement.

Get a Quote

Lease Rental Discounting-

For an Inquiry

Occupation
Nature of Loan
pscDiv2Img1.jpg

Following are the procedure steps:

1. Property Evaluation:

The borrower (property owner) provides details of the property to the lender, including its location, size, type, current lease agreements, rental income, and other relevant information.

2. Credit Appraisal:

The lender evaluates the creditworthiness of the borrower based on factors such as their financial history, income stability, repayment capacity, and the quality of existing lease agreements.

3. Assessment of Rental Income:

The lender assesses the rental income generated from the property to determine its sustainability and reliability. This involves analyzing the lease agreements, rental rates, occupancy levels, and the creditworthiness of tenants.

4. Loan Structuring:

Based on the property evaluation and credit appraisal, the lender determines the loan amount, loan-to-value (LTV) ratio, interest rate, tenure, and other terms and conditions of the loan. The loan amount is usually a percentage of the future rental income discounted over the tenure of the lease.

5. Documentation:

Once the loan terms are agreed upon, both parties enter into a formal agreement outlining the terms and conditions of the LRD facility. This includes executing loan documents, lease assignments, and other legal agreements as required.

6. Disbursement:

Upon completion of documentation and fulfillment of any preconditions, the lender disburses the loan amount to the borrower. The loan amount is typically credited to the borrower's account or released through other agreed-upon modes.

7. Repayment:

The borrower repays the loan through periodic installments, usually structured to coincide with the rental income received from the property. The repayment schedule, including the frequency and amount of installments, is determined at the time of loan structuring.

8. Monitoring and Servicing:

Throughout the tenure of the loan, the lender monitors the performance of the property, including the timely receipt of rental income and adherence to lease agreements. The borrower is responsible for servicing the loan as per the agreed-upon terms.

9. Closure:

Once the loan is fully repaid, including any outstanding interest and charges, the lender releases any encumbrances on the property and issues a closure statement confirming the repayment of the LRD facility.

Why choose Livanity for Lease Rental Discounting?

Livanity is a one-stop solution for all your financial needs. Here, we try to provide you best services that are hassle-free and quick in nature. For Lease Rental Discounting, we provide you a comparative analysis of what different banks are offering. We also assist you in your final decision.

Here are a few reasons for you to apply for a Lease Rental Discounting at Livanity:

Fast assistance:

At Livanity, you can contact us at any official working hours of the day.

Customer needs in forefront:

Your needs are our priority. We promise to deliver you with services that are best on our capabilities. By handpicking Lease Rental Discounting offers based on customer profile, we try to give you the most personalized experience.

Compare Offers Online:

With more than 100 lenders as partners, you can compare the different offers of financial institutions to make the right decision. In fact, we help you find the best lender as per your eligibility requirements. There is a personalized relationship lender for every customer who helps him/her select the bank of his/her choice.

Real-time customer support:

Our customer support team is fast and efficient to clear all your doubts regarding Lease Rental Discounting eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.

Copyrights © 2020 All Rights Reserved. Powered by Livanity Financial Services