Who can apply for a Lease Rental Discounting Loan?

Are you in need of funds for business expansion, consolidating obligations or other business requirements? If the answer is yes, you can apply for lease rental discounting (LRD) loan. This loan enables borrowers to encash their existing rental cash flows to avail the loan. This type of loan can availed by self-employed people, salaried professionals and even self-employed non-professionals. 
Besides monetizing your property by leasing out the premises for rental income, you can also raise this term loan against the rental income. You can meet business as well as personal needs with lease rental discounting loan. 
This is a good funding option for people who receive fixed rent from their property. The lending institution or the bank calculates the loan on the basis of discounted rent potential of the residential or commercial property. In this case, a loan agreement is made between the lessee, lesser and the lender. The lesser doesn’t collect the rent. It gets credited to the lending institution via an escrow account. The current occupant of the property deposits the rent every month in the escrow account. 
So, if you are looking for a short term loan to meet personal and business needs, LRD can be the perfect choice for you. This is especially effective when your business has an appreciable turnover and if you own a commercial or residential property. 
Whether you apply for a lease rental discounting loan or a property mortgage loan, it is very important to choose a reputed lender. There are several lenders in the market, claiming to offer loan products at attractive interest rates. But not all can be trusted; therefore, conduct a small research on your own or ask your friends and family if they can recommend a reputed lender for your requirements.