Who is eligible for Lease Rental Discounting?

Eligibility for Lease Rental Discounting (LRD) depends on several factors, which usually include the property, rental agreement, and applicant profile.

• The applicants must legally own the property being leased out for rental income. Clear ownership without disputes is required.
• The leased property can be commercial, such as offices or retail stores, or residential, with tenants from reputable companies or profiles.
• A legally registered rental agreement with a financially stable tenant and long lease term is mandatory. This ensures consistent future rental income.
• Loan providers prefer properties leased to financially established corporations, government bodies or individuals with strong financial profiles.
• The rental property should be in a good area and in good physical condition. These factors impact the property's value and rental income potential.
• Banks or Non-banking Financial Companies (NBFCs) require consistent rental income, which determines the loan amount granted via LRD.
• Good credit history, credit rating, existing financial liabilities, and repayment capacity are key applicant eligibility criteria that loan providers assess.