Lease Rental Discounting

Lease Rental Discounting is a tool to acquire loans from banks using rental receipts as collateral. With Lease Rental Discounting from ABM Financial Services, you can now get a loan on the discounted value of rentals and the underlying property value.

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Features of Lease Rental Discounting

All loans are not created equal,Lease Rental Discounting has become a great option for people to use.

Loan Term

Lease Rental Discounting is available on Residential, commercial and warehouse property under lease. The minimum loan amount we offer is Rs. 50 Lacs. Tenure for this loan is up to 15 years depending upon your age

Interest Rate & charges

Lease Rental Discounting by ABM Financial Services offers attractive interest rates starting at 11%

Lease Rental Discounting- Eligibility

Any self-employed or professional Public and Private company is eligible for a commercial property purchase loan. It can be availed to buy a shop, plot or resale commercial property.

Age

Self Employed (Min-Max) 24 – 70 years

Business Stability

Business Stability for Self Employed 5 years and above

Credit Rating

Applicant should have the bank specified credit score of 750 or above

Frequently Ask Questions

Individuals

Salaried Individuals: Any individual who is in permanent service in any government undertaking or any reputed private sector company in India. We also offer loans to salaried Non Resident Indians (NRIs) working with reputed companies in select countries.

Professionals:  Professionals i.e. allopathic doctors, architects, chartered accountants, cost accountants, practicing company secretary, management consultants and lawyers.

Self Employed: Individuals like traders, distributors, manufacturers, service providers etc.

Non-Individual Entities: Proprietorship Firms, Partnership Firms, Private Limited Companies, Public Limited companies.

You can borrow up to 70 % of the market value of your property subject to your income eligibility

Your eligibility is computed on the basis of the rentals that you receive against the property. Your EMI can be up to 70% of the gross rental income or 90% of the net rental income whichever is lower.

We grant Lease Rent Discounting (LRD) from minimum 3 years to maximum 10 yrs. The term for the loan will be restricted to the retirement age or 60 yrs at loan maturity for salaried customers and 65 years for self employed customers.

Rentals are payable by the tenant directly into escrow account. The underlying leased property, which may be commercial or residential property, will be taken as collateral. Only completely constructed properties are eligible under this program.

The rate of interest varies depending upon your loan amount, property type, lessee profile, rental income etc and this will be communicated to you by our sales representatives.

Yes. One can pre-pay the loan at any time after 6 months from the date of final disbursement of the loan. Foreclosure charges will be levied as applicable.

Foreclosure charges will be 5% + service tax on the outstanding loan amount at the time of foreclosure if the loan is closed within 12 months from the date of 1st disbursement. Foreclosure charge will be 3% + service tax if loan is closed between 12- 24 months from the date of 1st disbursement. The foreclosure charge will be 2% + service tax if loan closed after 24 months from the date of 1st disbursement.

You can make part pre-payments of a minimum amount of Rs 50,000 after 6 months from the date of first disbursement of the loan. This payment can be made only once in a financial year subject to a maximum of 25% of the balance outstanding against your loan amount at the time of request.

All part prepayments made 12 months prior to the foreclosure of the loan will be charged at the applicable foreclosure rate at the time of foreclosure.

The repayment towards your loan will be from the escrow account opened exclusively for collection of the rentals from the lessee occupying your property.

Your Lease Rental Discounting makes you eligible for tax benefits* as per the prevailing laws. This means that you can save more money by claiming deductions in your income tax, against principal and interest amount repaid.

An EMI is the ‘Equated Monthly Installment’, which is the monthly payment that you make towards repaying your Home Loan on a specified date until your loan is repaid in full.

Documents

Below is the list of documents required for loan process.

  • KYC Documents of applicant and co-applicants
  • Salary slips for the last 3 months / Salary Certificate (If variable components like Over Time and Incentives are reflected then salary slips for the past 6 months are required)
  • Latest Form – 16 if salary above Rs. 20000/- per month
  • PAN Card
  • Copy of all bank pass books / bank statements for the past 3 months including front page
  • Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any
  • Property Documents
  • Company profile if it is a lesser known organization.
  • KYC Documents of proprietor and co-applicants
  • Shop and establishment certificate/VAT/Sales Tax Registration Certificate
  • PAN Card
  • Last 2 years financials with audit report
  • Last 6 months Bank statement of all bank accounts
  • Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any
  • Property Documents
  • Registered partnership deed
  • KYC of partners
  • PAN Card of firm and partners
  • Shop and establishment / VAT/ Sales Tax Registration Certificate
  • Last 2 years financials with audit report
  • Last 6 months Bank statement of all bank accounts
  • Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any
  • Property Documents
  • Memorandum of Association (MOA) / Articles of Association (AOA)
  • Latest shareholding pattern
  • KYC of Directors
  • PAN Card of the entity and Directors
  • Last 2 years financials with audit report
  • Last 6 months Bank statement of all bank accounts
  • Existing facility sanction letter/ Repayment Track Record (RTR) of existing loan, if any
  • Property Documents

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