What documentation is required to apply for LRD?

When applying for a Lease Rental Discounting (LRD) loan, financial institutions generally require certain documents to assess an applicant's eligibility and secure the loan. Here is a typical list of documentation needed:

• Property documents: These usually include the title deed reflecting ownership, the previous sale deed, property tax receipts, and municipality approvals for the property. These validate legal ownership.
• Lease agreement: A registered, valid and binding lease agreement covering the tenure of the LRD loan is needed. Details like lease rental amount, escalation terms, lock-in period, etc., are verified.
• Financial documents: Generally, ITRs, bank statements, net worth certificates, and profit and loss statements may be required to assess the applicant's income and repayment capacity.
• Credit check: Many loan providers also check the applicant's credit score and credit report from bureaus like CIBIL to gauge repayment discipline.
• Other KYC documents: To fulfil Know-Your-Customer (KYC) norms, this typically involves ID proof, address proof, and passport-sized photographs. A PAN card may also be needed.