Lease Rental Discounting (LRD) loans are gaining traction in India, providing a compelling financing solution for individuals and businesses. These LRD loans offer up to 80% of anticipated rent receivables as a loan amount, payable over a term extending up to 15 years. Starting at an interest rate of 8.99% per annum, these loans are accessible and attractive to potential borrowers. Additionally, loans are disbursed efficiently, often releasing funds within 15 days of approval.

The mechanism of LRD loans involves mortgaging/ leasing income-generating commercial properties as collateral, enabling borrowers to access immediate funds. The versatility of the loan amount further enhances its appeal, allowing use for diverse needs.

Applicants must be at least 18 years and not exceed 65 years at loan maturation, be Indian citizens, and own properties in metro, urban, or semi-urban locales. These properties should be leased to Public Sector Undertakings (PSUs), Government bodies, Semi-government entities, or reputable Corporates, Banks, Financial Institutions, or Multinational Companies (MNCs). Securing the loan involves an equitable mortgage on the property or suitable collateral as per the bank's requirement.

Interest rates for LRD loans can be either fixed or floating, contingent on the lender's terms, typically starting from 8.99% per annum. The application process for an LRD loan mandates submission of several documents: a completed application form accompanied by a recent photograph, identity proof, age verification, residence and income documents, and a processing fee cheque favoring the lender. Essential property title documents, approved plans, lease agreements, sale deeds, property valuation, and a Title Search Report confirming ownership are also needed.

Notable Indian banks such as PNB Housing, Bajaj Finserv, ICICI Bank, and Axis Bank offer competitive LRD loans, each with unique terms and conditions.

Applicants can utilize an online EMI calculator to compute Equated Monthly Installments (EMIs) by entering the loan amount, tenure, and interest rate. For application, individuals may visit the bank's official site, navigate to the 'Lease Rental Discounting Loan' section, and click 'Apply Now', filling out the form accurately and uploading requisite documents. Bank representatives will assist further once approval is granted, facilitating fund crediting to the borrower's account.

Loan against property (LAP) provides expedited approval and sanction due to its secured nature and straightforward eligibility criteria. Borrowers can access large LAPs up to Rs. 15 crore for educational, business, or personal purposes with minimal hassle. Starting from 8.90% per annum interest rates, LAPs offer substantial loan amounts with competitive EMIs. Compared to personal loans, LAPs are more economical and offer better repayment flexibility with longer tenure options. Borrowers benefit from flexible tenure and EMI options, allowing long-term loan agreements up to 15 years with reduced EMIs, easing repayment hardships.