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Lease Rental Discounting (LRD)

Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rentals of the property and its current market value.

Why Lease Rental Discounting (LRD)?

Aditya Birla Finance offers Lease Rental Discounting (LRD) to property owners who receive fixed rent from tenants against their owned premises. The loan is calculated on the basis of the discounted rent potential of the property, plus its current market value. It is a term loan that can be used for both personal and professional needs.

This loan against rental receivables differs from other loan products in two ways:

  • The loan agreement is made between the lending institution, the lesser and the lessee.
  • The rent is not collected by the lesser, but is credited every month via an escrow account to the lending institution. The lessee/current occupant deposits the rent directly in the escrow account.

Is Lease Rental Discounting (LRD) for you?

The LRD term loan is a gainful financial option to explore if you require a short term loan for your personal or professional needs. You may opt for an LRD loan if you own residential or commercial premises and if your business yields an appreciable annual turnover. Your leased property must have a registered agreement between yourself and the lessee.

Features of Lease Rental Discounting

  • Collateral: Residential and commercial property under lease
  • Property credentials: Clear title, no existing borrowings on the property, lease agreement should be over 6 months old at the time of application
  • Tenure: Up to 9 years
  • Maximum loan amount: Rs 75 crore (not more than 70% of the property value)
  • Benefits: Attractive interest rates, loan transfer from other institutions with top up facility, faster processing

Please ask us for required documents and escrow account process at the time of application.
Next steps...
  • If you want to apply for Lease Rental Discounting loan, download the application form.
  • Our Relationship Manager can meet you at your convenience.
Do you have questions?

Call +91 84259 66666
or write us at abfl-customerservice@adityabirla.com. Click here to arrange a meeting today.

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Important Notice

Note : We would like to inform you that we do not accept cash for any transaction.

It has come to our notice that unknown third parties, who are not affiliated with Aditya Birla Finance Limited are forging/mis-selling loan products using our name, brand or logo (explicitly and/or implicitly). Aditya Birla Finance Limited may not have any control over such any third party use of our name and therefore cannot be held responsible for any unauthorised offer, products or services which is made by forging/misusing/faking our brand name. Anyone relying on any such information without verifying and confirming the same with Aditya Birla Finance Limited shall do so at their own risk and liability as to cost and consequences thereof. We also recommend that you do not disclose your personal or financial details to anyone approaching you and claiming to be on behalf of us, unless identity of the person is established or the communication is verified with one of the branches or telephone numbers stated herein.

If you receive a product/ loan proposal from anybody with a name similar to Aditya Birla Finance Limited or claiming to be from Aditya Birla Finance Limited or Birla Global Finance Limited or Birla Finance Limited or any other name which exhibits any connection with Aditya Birla Group or if you have any doubts about such proposal, please feel free to contact Aditya Birla Finance Ltd. immediately on +91 84259 66666. Aditya Birla Finance Limited highly recommends that you ignore any suspicious product/ loan proposals. On no account should you transfer any money without properly verifying and establishing the identity of the entity involved. We once again request you to examine product/loan proposals cautiously and carefully before entering into any transaction with such entities.


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