Lease rental discounting is a kind of loan against property provided by banks against rental receipts of the borrower which is derived from lease rent contracts with corporate clients. The loan is provided by lender to the lessor on the discounted value of the lease rentals and market value of the property. A professional consultant will save your time and money both, If you need a specialized guidance then contact Easy Loan Money. We are always with you.
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What are the documents required for lease rental discounting (LRD) loan?
Documents required for lease rental discounting loan depends upon the type of employment of an individual.
Documents required for different types of employment are as follows:-
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement
- Copy of Registered Lease Deed
- Employee ID Card
- Latest 3 months salary slip
- 3 years form-16, 26AS, ITR with computation of Income
- Annual CTC Letter
- Copy of Appointment Letter
- One year up to date salary account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of VAT/ Sales Tax, GST, Import-Export or any other registration Certificate
- Latest Office Address proof i.e electrcity bill, rent agreemen etc.
- Company Profile on the Letterhead of the firm
- Latest 3 year ITR with computation of Income including P & L a/c, balancesheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the saving and current account statemen
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement/ Registered Lease Deed
- Latest 3 year ITR with computation of Income
- Latest 2 year form-16 with 26AS if applicable
- One year up to date salary account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map.
- Pan Card
- Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
- Copy of Partnership Deed
- Latest office address proof i.e., electricity bill, rent agreement etc.
- Company Profile on the Letterhead of the Company
- Latest 3 year ITR with computation of Income including P & L a/c, balance sheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the current account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Latest Month Electricity Bill
- Copy of Rent Agreement/ Registered Lease Deed
- Latest 3 year ITR with computation of Income
- Latest 2 year form-16 with 26AS if applicable
- One year up to date all the saving account statements
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map.
- Pan Card
- MOA & AOA
- Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
- Latest office address proof i.e., electricity bill, rent agreement etc.
- Company Profile on the Letterhead of the Company
- List of director & shareholder with their shareholding pattern duly certified by CA.
- Latest form-32
- Latest 3 year ITR with computation of Income including P & L a/c, balance sheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 year form 26AS if applicable
- One year up to date all the current account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Pan Card
- Copy of Passport with VISA
- Copy of Green Card
- Complete CDS certificate in case of Merchant Navy
- Copy of valid residence proof in abroad
- Employee ID card or Labour card
- Copy of latest work permit
- Latest 3 months salary slip
- Latest 3 years income tax acknowledgement form
- Annual CTC letter
- Copy of appointment letter
- Credit report from credit agency
- One year Upto date NRI Salary account statement
- One year Upto date NRO/NRE account statement
- Copy of Sanction Letter
- Up to date loan account statement
- Loan repayment schedule
- 12 Month up to date bank statement showing repayment of the loan
- Loan closure proof if loan is closed
- Copy of PAN card & Aadhar card
- Power of Attorney in favour of blood relatives or relatives in India
- Copy of previous chain of property papers
- Copy of approved sanction plan or Map
What are the other key factors to be considered before choosing best lease rental discounting loan (LRD)?
Before taking Lease Rental Discounting (LRD) loan it is advisable to consider following factors:
Check your lease rental discounting (LRD) loan eligibility that how much loan you can borrow from bank and market value of the property. Loan eligibility of a borrower also depends upon so many other factors like age, income, cibil score, work profile, financial stability, market value of the property, etc.
Before taking lease rental discounting (LRD) loan, check rate of interest offered by different bank or NBFC as it has a major impact on your EMI. If rate of interest is high then EMI is also high, so choose the bank which provides lower rate of interest so that EMI will not put extra loads on your business.
Bank or NBFC charges loan processing fees to process your lease rental discounting (LRD) loan application. There are two types of charges one is loan processing fees and the other is loan administration charges.
Loan processing fee charges by the bank or NBFC to process your loan application, valuation of the property, legal verification of the property, residence verification, office verification, due-diligence of income documents and bank statement etc. It could be a fixed percentage of your loan amount or a fixed amount.
Loan administration charges are taken by bank to maintain your loan account after disbursement. Some bank or financial took upfront fees however some of them charged after sanction of the loan amount, so check loan processing charges of bank deeply before applying for the loan.
When borrower want to make some payment towards principal amount of lease rental discounting (LRD) loan, bank may charge part payment charges from the borrower. It is advisable to read the terms and condition of your loan sanction letter and loan agreement carefully and make sure that it is not very high compared to market.
When borrower decided to close his lease rental discounting (LRD) loan before the completion of loan tenure or period. Bank or NBFC may levy 1% to 2% foreclosure charges on outstanding loan amount.
Bank laid down several conditions related to balance transfer of lease rental discounting (LRD) loan to another lender, cheque bouncing charges, late payment charges, interest on late payment etc. It is advisable to read all the terms and conditions before choosing the best bank.