Unlock Immediate Capital from Your Rental Income
Loan Against Rentals (Lease Rental Discounting – LRD)
If you own a commercial property that earns steady rent, you can now turn that future rental income into immediate funds without selling your asset. This is made possible through a Lease Rental Discounting (LRD) loan — also known as a loan against rental income.
At JS Financial Solutions, we help property owners secure the best LRD loan options from banks and NBFCs — offering competitive interest rates, flexible repayment terms, and fast disbursal.
What Is a Loan Against Rentals (LRD)?
A Loan Against Rentals (LRD) is a secured loan facility where you borrow against the present value of future rental receipts from your commercial property that’s on lease. The loan amount is determined based on your lease agreement, rental income consistency, and property value.
Instead of waiting for monthly rent over years, LRD lets you receive a lump sum today — while your tenant continues to pay rent. The lender uses future rental cash inflows (typically routed through an escrow account) as part of the repayment mechanism.
Who Can Apply for LRD?
Lease Rental Discounting is ideal for:
Owners of commercial properties with leased tenants
Business owners earning consistent rental income
Investors seeking working capital or funds for expansion
Professionals & individuals with rental assets generating income
⚠️ Note: Rental income from purely residential properties is generally not eligible for LRD — the property must be leased to businesses or reputed corporate tenants.
Benefits of Loan Against Rentals
💰 Unlock Capital Without Selling Your Property
Convert future rent into immediate funds for business needs, personal goals, or debt refinancing.
📉 Competitive Interest Rates
Since the loan is secured by rental income and property value, lenders typically offer attractive interest rates.
📅 Flexible Tenure
Loans are often structured based on your lease duration — commonly up to 10–15 years tied to remaining lease term.
🔁 Ease of Repayment
Rental receipts can be routed directly to the lender through an escrow mechanism, simplifying repayment.
Eligibility Criteria
While criteria vary by lender, typical eligibility includes:
Property must be leased with a valid registered lease agreement
Rental income should be consistent and documented
Applicant should meet age, credit score, and income norms
Commercial or industrial property leased to reputed tenants
Required KYC Documents
✔ Identity & Address Proof (PAN, Aadhaar, etc.)
✔ Copy of registered lease agreement
✔ Bank statements showing rental credits
✔ Property title & ownership documents
✔ Income proofs like ITR, financial statements (if applicable)
(Exact document requirements vary by lender.)
How LRD Works — Quick Overview
Why Choose JS Financial Solutions for LRD Loans?
✔ Access to top banks & NBFCs offering LRD products
✔ Personalized comparison for best rates & terms
✔ Full documentation and application support
✔ Transparent, end-to-end service from start to disbursal
What is an LRD loan?
Lease Rental Discounting (LRD) is a loan against future rental income from a commercial property — allowing you to receive funds upfront.
Can I use the funds for any purpose?
Yes — LRD funds can typically be used for business expansion, refinancing existing debt, working capital, or personal goals, subject to lender terms.
Is residential property rental eligible?
Generally, LRD is designed for commercial properties leased to corporate or reputed tenants. Residential rentals usually do not qualify for LRD.
How is the loan amount calculated?
The loan is usually based on the discounted value of future rentals (Net Present Value) and property value, along with your creditworthiness.
What is the typical loan tenure?
Loan tenure often matches or is aligned with your lease period — typically up to 10–15 years.