Apply For Lease rental discounting

With the increase and introduction in more economic activity in India, there are several options of loans made available for the borrowers, lease rental discounting is one of such loans.

There is a fact that property, or to be more precise; rented property is a steady and fluent source of income, however, there are only a handful of financial lending institutions that provide this type of loan, which is used in expansion, enhancement of the business or purchasing machinery or increasing marketing. With income, a borrower can borrow up to 70% of the actual amount of the property. This loan is stable and is provided in stable circumstances.

What is Lease Rental Discounting?

It is a term loan that is provided to the borrower based on their income from the rented property. A major aspect that affects the lease rental discounting loan is the availability of rent receipts from the tenants or any other relevant proof of receiving rent. Although, there are several other factors that matter when obtaining a lease rental discounting loan. About the co-owners of your property will have to sign up as co-applicants. 

 

For a sole property owner or applicant, one adult member in the family will need to sign up as a co-applicant. In case of partnership firms or a company, partners and promoter directors respectively need to be co-applicants, this happens in most of the cases as lending institutions have made these guidelines mandatory in cases of co-ownership of the leased property

 

Characteristics of Lease Rental Discounting Loan

 

- CRITERIA FOR PROVIDING THE LOAN

• • This loan is different from other types of loan, it is a more secured one for both lenders and borrowers, a property which is leased is itself the collateral in this loan
  • It is provided as a loan against lease discounting.
  • Rented properties with leases 5 to 10 years are provided with this loan.

- BORROWERS

• • The loan is not dependent on the type or profession of the borrower, it can be availed by salaried professionals, businessmen, or self-employed workers, anyone who possesses a property which is on lease.
  • In the case of firms, the loan is provided to proprietorship and partnership firms, limited and private limited companies.
  • Preferred borrowers are the owners of properties rented to known brands and corporates. The loan is also provided to the retail segment.

 

- LOAN AMOUNT

• • The minimum amount of loan provided is between 20L to 1Cr, which varies among the loan providing organizations. The maximum amount can go up to 10 Cr or more.

The amount of the loan is dependent on the property and its leased value, lease rental discounting loan surrounds the property, and in case of failure in repayment, the firm is enabled to take necessary steps, like auctioning or reselling the property, that is why choosing the right lending institution is so necessary.

 

Terkar Capital is one such financial institution that provides hassle-free loans against lease discounting and also for Working Capital Pune they are quick with the client support and transparency of the process always remains their priority.

Get Valuable Guidelines from Experts: Capital Finance in India and Lease rental discounting loan