Lease Rental Discounting Benefits & Features
ELIGIBILITY

Any resident or non-resident individual can apply for the LRD Loan

Both salaried and self-employed professionals (including doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary and management consultants) can apply

You can get lease rental discounting loan for a maximum tenure of 15 years

The minimum lease period should be 3 years

Funding will be given only against self-occupied, commercial or specialised properties

Escrow account should be opened with ICICI Bank, to enable the credit of rentals against the loan sanctioned.
Proof of Identity and Residence
- Aadhaar Card, PAN Card, Passport, Driving Licence. PAN Card issued in India is no longer considered a valid proof of identity.
Proof of Income
- Income documents (Financial & ITR) not required
- Last 6 months’ Bank Account Statements, having rental credit
- Last 6 months’ Bank Account Statements, for all other operating bank accounts.
Others
- Lease Agreement papers
- Duly signed Application Form
- Photographs.
Lease Rental Discounting Related FAQs
Following are the Lease Rental Discounting fees and charges, to get the loan:
- If you take an LRD Loan, you are required to pay a Loan Processing Fee / Renewal charges of 2% plus applicable taxes
- Administration charges will be Rs 5,000 or 0.25% of the Loan Amount plus Applicable Taxes, whichever is lower
- If you are pre-paying the loan amount any time after 6 months, from the date of the disbursement of the loan, you will have to pay pre-payment charges at the rate of 4% plus applicable taxes.
No. The Lease Rental Discounting or LRD Loan is applicable only for commercial properties or specialised properties, such as warehouses, industries, schools, hotels, hospitals, banquet properties, marriage gardens, etc. If you yield rental income from any of these properties, you can take an LRD Loan.
The maximum loan term for the Lease Rental Discounting is 15 years. For specialised properties, the Lease Rental Discounting loan tenure is 10 years.
To apply for the loan, you need to submit the Lease Rental Discounting documents that are as follows:
- Proof of ID – PAN Card, Aadhaar Card, Passport, Driving License
- Proof of Income – Last 3 years’ ITR and Balance Sheet Account Statements, last 3 years’ Profit and Loss Account Statements, last 6 months’ Current Account Statements having rental credits, last 6 months bank statements of all other operating accounts
- Proof of Property – Copy of the Leased Agreement.