How lease rental discounting works
LRD is a tool to get loans from financial institutions by using rent receivables as collateral. Lenders examines long term cash flow to calculate loan amount and tenure and loan is repaid by the rental amount every month.Important Factors to check eligibility of LRD includes property value, loan repayment capacity, type of property and other liabilities you might have.LRD facility works on the rental properties being generating a fixed amount of rent. Tenants enter into a lease with the owner of the property. This agreement mandates a regular payment which is known as rent. The property owner can use rental receipts drawn up for the duration of the lease as collateral while applying for a loan.