Hey,
You must have seen corporations and individuals make money from renting their immovable properties. This trend is visible in tourist destinations like Goa, Pondicherry etc. For the financing needs of these people, banks offer different schemes like lease rental discounting.
Get legal help for all your property matters on NoBroker, here. Check out the properties on NoBroker that can yield good ROI. What is Lease Rental Discounting?It is a tool used by property owners or lessors for acquiring loans from banks/ financial institutions using collateral (rental receipts). The bank examines the long-term cash flow amongst other factors and provides loans depending on the projected amount.
Other factors are:
Value of your property
Your capacity to repay
Other assets you own
Legality and technical aspects of your property
Liabilities that might occur
In your understanding of lease rental discounting meaning, you should know that LRD is given on the premise of the rental property being owed a fixed amount of rent. Salaried individuals, professionals, partnership firms, private and public limited enterprises and self-employed individuals can avail of this loan. The property owner will get benefits such as tax benefits and balanced cash outflow.
How does it work?Lease rental discounting loan agreements are generally signed between three parties. The borrower, lender and tenant sign the contract wherein the tenant makes monthly rent payments to the bank directly. The payment made to the bank can be equated to EMI (Equated monthly instalment).
This is all from my end on lease rental discounting.
Read more: What is lease agreement? What is cheque discounting? What is discounting bill of exchange ?
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What is lease rental discounting?
Anila
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3 Year
2022-11-15T12:36:09+00:00 2022-11-15T12:36:10+00:00Comment
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