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1800-270-7000
Loan Against Property
Aditya Birla Finance Limited
About the Loan
About the Lease Rental Discounting
Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rental cash flows from the property and its current market value.
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Application Form
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Is Lease Rental Discounting for you ?
The LRD term loan is a gainful financial option to explore if you require a short-term loan for your personal or professional needs. You may opt for an LRD loan if you own residential or commercial or warehouse premises and if your premises is generating rental yields. Your leased property must have a registered agreement between yourself and the lessee.Why Lease Rental Discounting ?
We offer Lease Rental Discounting (LRD) to property owners who have leased their owned premises to receive rent. The LRD eligibility is calculated on the basis of the discounted rental cash flows of the property, and its current market value. It is a term loan that can be used for both personal and professional needs.Features of Lease Rental Discounting
- Collateral: Residential, commercial and warehouse property under lease
- Property credentials:Clear title,
- Tenure: Up to 15 years
- Minimum loan amount: Rs 50 lacs
- Maximum loan amount: as per norms
- Benefits: Attractive interest rates, loan transfer from other institutions with top up facility, faster processing
Please ask us for required documents and escrow account process at the time of application.
Standard Schedule of Charges
Transactions & Charges
Fore-Closure Charges :
Lock in period is 24 months from the date of final disbursement. No foreclosure is allowed during this period. (This restriction is not applicable for individuals borrowing for personal use) For given application: Please refer page no. 1 and/or 2 of this sanction letter.
Lock in period is 24 months from the date of final disbursement. No foreclosure is allowed during this period. (This restriction is not applicable for individuals borrowing for personal use) For given application: Please refer page no. 1 and/or 2 of this sanction letter.
Fore-Closure Charges after lock in period is over :
In case of Individual loans (where borrower is individual, with or without co-obligant(s)) for Personal purpose: NIL foreclosure charges In all other cases: 4% of the Principal outstanding amount.
In case of Individual loans (where borrower is individual, with or without co-obligant(s)) for Personal purpose: NIL foreclosure charges In all other cases: 4% of the Principal outstanding amount.
Part pre - payment condition :
25% of the principal outstanding as on 1st April of given financial year will be allowed to be part paid without any charges. (This restriction is not applicable for individuals borrowing for personal use) For given application: Please refer page no. 1 and/or 2 of this sanction letter.
25% of the principal outstanding as on 1st April of given financial year will be allowed to be part paid without any charges. (This restriction is not applicable for individuals borrowing for personal use) For given application: Please refer page no. 1 and/or 2 of this sanction letter.
Part Prepayment Charges :
In case of Individual loans (where borrower is individual, with or without co-obligant(s)) for Personal purpose: NIL foreclosure charges In all other cases: 4% of the part payment in access of 25% in given financial year
In case of Individual loans (where borrower is individual, with or without co-obligant(s)) for Personal purpose: NIL foreclosure charges In all other cases: 4% of the part payment in access of 25% in given financial year
Additional Note on Foreclosure and Part Prepayment Charge :
Foreclosure or part prepayment charge offered less than standard charges will be applicable only in case of NIL bounce, by applicants, in any of the loans with ABFL during currency of the loan granted vide this sanction letter. Standard charge mentioned here applicable otherwise.
Foreclosure or part prepayment charge offered less than standard charges will be applicable only in case of NIL bounce, by applicants, in any of the loans with ABFL during currency of the loan granted vide this sanction letter. Standard charge mentioned here applicable otherwise.
Default Penal Interest Rate / Non Conformance with any covenants / stipulated conditions (at the sole discretion of ABFL) :
24% p.a. i.e. 2% per month
24% p.a. i.e. 2% per month
Cheque Return Charges/ECS/SI/NACH failure charges :
Rs 1000/- per instance
Rs 1000/- per instance
Accrued Interest :
As applicable based on actual delayed status or as communicated by the lender from time to time
As applicable based on actual delayed status or as communicated by the lender from time to time
Cancellation Charges if any :
4.00% of loan amount sanctioned
4.00% of loan amount sanctioned
Closure charges for OD/LOC (Standard charges) :
4% of prevailing limit at the time of closure
4% of prevailing limit at the time of closure
Request for copies of documents of any collateral held with ABFL per instance :
Rs 2500/- per instance
Rs 2500/- per instance
Duplicate Statement/ Repayment Schedule / FC statement / any other document held with ABFL request
FC Statement: Rs. 1500/- per instance
RTR: Rs 1000/- per instance
Other statements: Rs. 200/- per instance
FC Statement: Rs. 1500/- per instance
RTR: Rs 1000/- per instance
Other statements: Rs. 200/- per instance
Charge For Exchanging PDCs, Security Cheques (Per Set) / ECS /NACH :
Rs 1000/- per instance
Rs 1000/- per instance
CIBIL/Credit report retrieval fee :
Rs 50/- per instance for Consumer and Rs. 500/- for Commercial CIBIL/Credit report
Rs 50/- per instance for Consumer and Rs. 500/- for Commercial CIBIL/Credit report
Loan Re-schedulement (on request from applicants, approval to be at sole discretion of ABFL) charges per instance
2% of the prevailing loan outstanding
2% of the prevailing loan outstanding
NOC issuance charges per instance :
Rs 1000
Rs 1000
Swap/Conversion Charges (Fixed rate to floating and vice-versa, at sole discretion of ABFL) (on request from applicants, approval to be at sole discretion of ABFL) per instance :
3% of the prevailing loan outstanding
3% of the prevailing loan outstanding
Property swap charges (on request from applicants, approval to be at sole discretion of ABFL) :
3% of the prevailing loan outstanding
3% of the prevailing loan outstanding
Stamp Duty ,
Legal and other statutory charges ,
Insurance Premium , Creation charge with ROC :
As per actual, where applicable
As per actual, where applicable
Disclaimer: It is subject to change from time to time on discretion of ABFL. Any GST as applicable on the Charges as per below schedule shall be payable by the Borrower.
Next steps...
- If you want to apply for Lease Rental Discounting loan, download the application form : Click here
- Our Relationship Manager can meet you at your convenience.
Do you have questions?
Call +91 1800 270 7000 OR write to us at care.finance@adityabirlacapital.com.Lease Rental Discounting FAQ's
Lease Rental Discounting (LRD) is a term loan provided against rental receipts. This option is suitable for property owners who receive a consistent rental income at regular intervals.
LRD eligibility criteria:
- Citizens can be Indian or NRI
- Private or public sector employee
- Self-employed professionals - chartered accountants, lawyers, doctors, consultants etc.
- Public or Private Limited Companies, Partnership or Proprietorship firmss
Lease Rental Discounting loan operates based on fixed rental income from leased properties. Tenants engage in a lease agreement with the property owner.
If you opt for an LRD Loan, you will need to pay a Loan Processing Fee/Renewal charge of 2% plus applicable taxes.
Administrative charges will be either Rs 5,000 or 0.25% of the Loan Amount plus Applicable Taxes, whichever is lower.
In case of loan prepayment, anytime after six months from the date of loan disbursement, prepayment charges at a rate of 4%, plus applicable taxes, will be applicable.
Lease Rental Discounting is classified as a Term Loan that enables you to get a loan using rental receipts as collateral. Tenants can conveniently apply for a loan based on the rental income they receive from lease agreements. If you own a property and expect fixed rentals over the long term, you may qualify for the LRD Loan.
ID proof - PAN & Aadhaar Card, Passport, Driving License etc.
Income proof
- ITR of previous and Balance Sheet Account Statements for three years,
- Profit / Loss Account Statements and Current Account Statements with rental credits,
- Six-month bank statements of all active bank accounts.
What do we offer?
A sudden requirement of funds is an unavoidable circumstance arising in professional or personal life. Whether a personal necessity (hospitalisation, child's marriage) or a professional one (expanding business operations on a priority basis), every person requires immediate financial backing at key moments.
In this context, it is imperative to consider an invaluable source of finance known as Loan Against Property (LAP). This is a loan borrowed by placing one's owned property as collateral. The funding may be given by financial institutions after scrutinising the validity of the said property and its current market value.
