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Get a loan on your existing home loan to meet your needs

Loan Against Property

Turn your assets into a financial ally

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Lease Rental Discounting

Turn your rental income into instant capital.

Get high-value loans against leased residential, commercial, or warehouse properties

Enjoy attractive interest rates with flexible repayment up to 15 years

Use funds for personal or business needs without selling your property

165+

YEARS OF EXCELLENCE

3.8+ Cr.

ACTIVE CUSTOMER BASE

1300+

BRANCHES ACROSS INDIA

₹3.9 Lakh Cr.

AUM AS OF JUNE, 2023

What is Lease Rental Discounting LRD ?

Lease Rental Discounting (LRD) is a term loan offered by financial institutions against rental income derived from leased properties. The full form of LRD is Lease Rental Discounting. This loan allows property owners—whether residential, commercial, or warehouse—to monetise future rent receivables by borrowing a lump sum against the discounted value of their rental cash flows.

If you own a leased property with a registered rental agreement in place, an LRD loan in India can be a powerful financial solution for both personal and professional needs.

Understanding How Lease Rental Discounting (LRD) Works Lease Rental Discounting (LRD) is a loan facility that enables property owners to raise funds by utilising future rental income from leased commercial properties. LRD helps property owners unlock liquidity without selling the asset. Funds can be used for business expansion, working capital, or other financial needs. • The loan is sanctioned based on:

A long-term lease agreement with a tenant
The property's rental yield
Rent is directed into an escrow account to ensure timely loan repayment.
Flexible repayment tenures are available, up to 25 years.
Loan amounts typically range from a few lakhs to several crores

Lease Rental Discounting Benefits & Features ?

Lease Rental Discounting enables property owners to access immediate funds without selling their assets. The loan is secured against the rental income and property market value, making it a low-risk, high-value option.

Unlock value from rental income

Maintain ownership of the property

Use funds for personal or business purposes

Quick access to large loan amounts

Common Use Cases:

Business expansion

Funding medical emergencies

Child’s education or marriage

Working capital needs

Key Features, Benefits and Risks of LRD for Borrowers

Collateral:

Residential, commercial, or warehouse property currently under lease.

Loan Amount:

Minimum ₹50 lakhs; maximum as per property valuation and bank norms.

Tenure:

Up to 15 years.

Lease Rental Discounting Interest Rate:

Competitive rates based on lease terms, credit profile, and market trends.

Top-up Facility:

Option to transfer existing loans with additional funding.

Quick Processing:

Streamlined documentation and faster disbursal.

Get Instant Digital Sanction

Get Instant Digital Sanction for your top-up home loan applying at your convenience anytime anywhere on ABCD app.

5 Things To Consider Before Taking A LAP

STEP

Visit the Official Website and navigate to the ‘Loan Against Property’ section.

STEP

Select LRD Loan Option under eligible loan types.

STEP

Fill Out Basic Details such as property information, lease terms, and personal credentials.

STEP

Upload Required Documents including the lease agreement and property title.

STEP

Wait for Verification and Approval. Post-verification, funds will be credited to your account upon successful approval.

STEP

Upload Required Documents including the lease agreement and property title.

STEP

Wait for Verification and Approval. Post-verification, funds will be credited to your account upon successful approval.

Things To Keep In Mind

Long-term Reference Rate

Ways to save taxes with life insurance

ABCL has increased its Long-Term Reference Rate (LTRR) by 20 bps to 20.45% p.a. with effect from March 1, 2024. The interest rate on the floating rate loans of tenor greater than 12 months that are linked to the LTRR will be revised upwards by 20 bps. The spread / margin on the said loans will remain unchanged.

Short-term Reference Rate

Simple processes when you need it most

ABCL has increased its Short-Term Reference Rate (STRR) by 20 bps to 19.45% p.a. with effect from March 1, 2024. The interest rate on the floating rate loans of tenor up to 12 months that are linked to the STRR will be revised upwards by 20 bps. The spread / margin on the said loans will remain unchanged.

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Customer Satisfaction Stories

Don’t just take our word for it. Hear from our customers about their successful financial journey with us

Mr. Hiralkumar Ashokbhai Patel

Aditya Birla Finance Customer

The digital platform and whatsapp service of ABHFL gives me a quick access to my basic loan details such as statement of accounts, loan account details, interest certificate, and repayment schedule.

Mr. Arpit Jain

Aditya Birla Finance Customer

Gurgaon, India

Mr. Pramod Kumar Saini

Aditya Birla Finance Customer

Highly appreciate the speed of work at ABHFL, my overall experience in the home loan journey was good.

Mr. Dharmendra Kumar

Aditya Birla Finance Customer

Meerut, India

FAQs on Loan Against Property

LRD allows banks and NBFCs to provide secured loans with lower default risk. The predictable rental income stream ensures better repayment reliability, making LRD a preferred asset class in property-backed lending.

LRD is calculated by discounting future rent receivables using a standard discounting rate. The ideal loan-to-value (LTV) ratio is typically 50–70% of the property’s market value, based on risk profile and lease terms.

LRD can be availed against leased residential, commercial, and warehouse properties, provided the lease is active, legally registered, and with a reputed corporate tenant.

If used for business purposes, the interest paid on LRD may be deductible as a business expense under Section 37(1) of the Income Tax Act. Always consult a tax advisor for personalized guidance.

Yes, most LRD loans come with prepayment and foreclosure options. Charges vary based on whether the loan is on a fixed or floating rate and if the borrower is an individual or entity. Please refer to the applicable Schedule of Charges for details.