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Lease Rental Discounting (LRD) — Monetise Future Rentals
Lease Rental Discounting
Turn a long lease into upfront capital
Lease Rental Discounting (LRD) is a loan against the discounted present value of the future rental cash flows from a long-term commercial lease. Instead of waiting years to collect rent month by month, you raise a lump sum today against those contracted receivables — and the EMI is serviced directly from an escrow of the rental receipts. It is one of the most efficient ways for the owner of a leased, income-producing commercial property to unlock liquidity without selling the asset.
We are not a lender — the facility is appraised, sanctioned and disbursed by our partner bank or NBFC at their discretion, based on the strength of your tenant, the registered lease and the escrow structure. As an intermediary, we structure the proposal, compare lenders and keep the cost picture transparent before you commit.
Loan amount*70%–85% of NPV
Interest rate*9%–11.5% p.a.
Max tenure*Up to lease (≈9–15 yrs)
Servicing*Rent escrow
Tenant profile*A-grade / established
*Indicative and subject to change — the actual amount (as a % of the net present value of future rentals), rate, tenure, escrow terms and acceptable tenant profile are set by the lender per its policy and your lease. See the full disclaimer in the footer.
Who it's for
Built for owners of leased commercial assets
Commercial landlords
Owners of an office, IT park, mall or retail unit leased to a strong corporate who want to monetise future rent today.
MNC-tenant property owners
A registered lease to an A-grade or multinational tenant gives the cash flow lenders value most.
Owners refinancing rent
Replace a costlier loan, or raise growth capital, against contracted lease receivables rather than selling the asset.
Businesses & SPVs
Companies, LLPs and property-holding SPVs unlocking liquidity from a long-term lease for expansion or working capital.
Features & benefits
Why owners choose LRD with us
Liquidity without a sale
Raise a lump sum against future rent while you keep ownership of the underlying commercial asset.
Funding on NPV of rentals
Indicatively 70%–85% of the net present value of contracted future rentals, depending on tenant and lease strength.
Escrow-served EMIs
The rent flows into an escrow and the EMI is auto-recovered from it — a clean, predictable servicing structure.
Tenure matched to the lease
Repayment is sized to the unexpired lease term, indicatively about 9–15 years, so the facility self-liquidates.
Competitive, secured pricing
Backed by rentals from an established tenant and the property itself, LRD is priced finer than most unsecured options.
Lenders compared for you
One structured proposal, a written comparison of terms, and an advisor you can reach by name.
Eligibility
What an LRD facility needs
| Criteria | Indicative requirement* |
|---|---|
| Property | A completed, occupancy-certified commercial property with a clear, marketable title |
| Lease | A registered lease deed with sufficient unexpired tenure / lock-in remaining |
| Tenant | An established or A-grade tenant — a strong corporate, MNC or reputed brand preferred |
| Escrow | Willingness to route rentals through an escrow account assigned to the lender |
| Borrower | Property owner — individual, company, LLP or SPV — with a satisfactory credit profile |
| Cash flow | Contracted rentals that comfortably cover the proposed EMI after escrow |
Eligibility is indicative and finally determined by the lender's policy, the tenant's standing and a review of the lease and escrow structure.
Documents
What you'll typically need
Lease & property
- Registered lease deed / leave-and-licence agreement
- Rent receipts & rental ledger for the recent period
- Title documents, chain of ownership & approvals
- Occupancy certificate & latest property-tax receipts
- Tenant profile / company background & KYC
- Draft escrow / rent-assignment arrangement
Borrower / owner
- PAN & Aadhaar (KYC), recent photographs
- For entities — incorporation, GST, board resolution
- Last 2–3 years' ITRs & audited financials
- Last 6–12 months' bank statements
- Existing loan / sanction letters, if any
- Details of the escrow / collection bank account
Exact documents vary by lender, borrower type and the lease — we share a personalised checklist once we understand your case.
Rates, fees & charges
Indicative cost of an LRD facility
| Item | Indicative* |
|---|---|
| Interest rate | 9% – 11.5% p.a. (typically floating, linked to a benchmark) |
| Loan amount | 70% – 85% of the net present value (NPV) of future rentals |
| Tenure | Capped at the unexpired lease — indicatively about 9–15 years |
| Processing fee | 0.5% – 1.5% of facility amount + GST |
| Escrow / legal & technical | Escrow set-up, legal opinion, valuation — at actuals |
| Prepayment / foreclosure | As per sanction — may apply for non-individual / fixed-rate facilities |
*Indicative as of the current period and subject to change without notice. Final rate, the NPV-based amount, tenure and fees are set by the lender in the sanction letter.
How it works
From first call to disbursal —
four simple steps.
01
Share your lease
Tell us the property, the tenant and the lease terms — by phone or our web form.
02
Structure & compare
We compute the NPV of rentals, structure the proposal and present a clear, written shortlist.
03
Escrow & sanction
We coordinate legal, valuation and the escrow set-up through to sanction.
04
Disbursal & beyond
Funds are disbursed and rent is routed to escrow — and we stay available for queries.
How it's structured
How an LRD facility is structured
A registered lease
The facility rests on a registered lease deed with an established tenant and enough unexpired tenure — the contracted rent is the security.
NPV of future rentals
Future rent over the lease is discounted to its present value; the loan is sized as a percentage (indicatively 70%–85%) of that NPV.
Escrow servicing
The tenant pays rent into an escrow assigned to the lender; the EMI is recovered from it and any surplus flows back to you.
Tenure tied to the lease
Repayment is capped at the unexpired lease term so the facility self-liquidates from rent over the contract period.
Tenant strength drives terms
A stronger, A-grade tenant and a longer lock-in usually unlock a higher amount and a finer rate.
Tax on rent & interest
Rental income remains taxable in your hands and loan interest is generally set off against it; this is general information, not tax advice.
LRD is a commercial facility — unlike a self-occupied home loan, there is no personal §80C principal or §24(b) self-occupied benefit. Tax outcomes depend on your situation and the law in force; please confirm with a tax professional.
Request a structured LRD quote
LRD is bespoke — there is no one-size EMI calculator. Share your lease, tenant and property and we'll prepare a structured proposal with the indicative amount, rate and escrow terms.
FAQs
Lease rental discounting — questions, answered
LRD is a loan against the discounted present value of the future rental cash flows from a long-term commercial lease. You raise a lump sum today against contracted future rent, and the EMI is serviced directly from an escrow of the rental receipts — so the owner of a leased, income-producing property can unlock liquidity without selling the asset.
Lenders prefer a completed commercial property let to an established, A-grade tenant — a strong corporate, MNC or reputed brand — under a registered lease deed with sufficient unexpired tenure or lock-in remaining. The stronger the tenant and the longer the committed lease, the more comfortable the lender and the better the terms.
The loan is sized on the net present value (NPV) of your future rentals — the contracted rent over the lease discounted back to today. Lenders indicatively fund 70%–85% of that NPV, depending on the tenant's strength, the unexpired lease term and the property. The exact amount is set by the lender after appraisal.
Through a rent escrow. The tenant is directed to pay rent into an escrow account assigned to the lender, the EMI is auto-recovered from it each month, and any surplus after the EMI flows back to you. This escrow mechanism is central to LRD and is what makes the cash flow predictable for the lender.
Tenure is capped at the unexpired term of the lease so the facility self-liquidates from rent — indicatively around 9–15 years, depending on how much of the lease and lock-in remains. A longer committed lease generally supports a longer tenure and a more comfortable EMI.
Centrally, the registered lease deed and the proposed escrow / rent-assignment arrangement, plus property title and approvals, occupancy certificate, rent receipts, and the tenant's profile and KYC. On the borrower side: KYC, entity documents where applicable, recent ITRs, financials and bank statements. We share a personalised checklist once we understand your case.
Both are possible. A single strong tenant on a long lease is the simplest case. With multiple tenants — say a small office building or mall — the lender pools the rentals but looks closely at tenant mix, vacancy and lease expiries, and may apply a more conservative discount. A diversified, well-tenanted property can actually reduce concentration risk.
An early tenant exit is the key risk in LRD, so lenders plan for it. Sanctions typically require you to re-lease the space within a defined period, may hold a few months' rent as a reserve in the escrow, and can ask for a fallback such as additional security or a shorter tenure. We help you understand these covenants before you sign so there are no surprises.
Related loans
You might also consider
Sitting on a long commercial lease?
Monetise your future rentals — get a structured LRD proposal, free.
Tell us your lease and tenant, and we'll compare lenders and come back with an honest, escrow-served cost picture.