What types of properties qualify for LRD?

Lease Rental Discounting (LRD) is typically available for properties that generate consistent rental income. Financial institutions usually assess the property’s value, location, and tenant profile before approving LRD loans.

1. Commercial Properties: Properties like office spaces, retail outlets, shopping malls, and warehouses leased to businesses usually qualify. These properties usually have corporations as tenants with steady rental agreements.
2. Residential Properties: Residential properties such as apartments, flats, or villas that are rented out to financially stable tenants can qualify, given there is a proper rental contract.
3. Industrial Properties: Factories, manufacturing units, and other industrial properties rented to businesses can also be eligible. These properties must generate reliable rental income.
4. Corporate Rented Properties: Properties leased to established corporations, multinational companies, or government agencies are preferred. These tenants are seen as financially stable.
5. Prime Location Properties: Properties located in major cities, business districts, or high-demand areas typically qualify. They command higher rental rates.
6. Long-Term Rental Properties: Properties leased out for longer periods to credible tenants qualify more easily. They offer predictable income streams.
7. Clear Ownership Properties: Only properties with legal ownership titles and documents qualify. Lenders ensure no disputes or legal issues exist on the property.