PNB Housing

Lease Rental Discounting

We always strive for innovation to benefit our customers in as many ways possible. That’s why we offer a rent securitization scheme wherein we provide loan against assured rental receivable from a property owned by you, which has been let out to a Bank, Multinational Company, AA* or AAA* Rated Corporate and Government/ Semi Government Undertakings.

Lease Rental Discounting

Interest Rate

Starting from
9.00%* 
Note: The mentioned Interest rates are Floating Rates

Lease Rental Features

80%

80% EMI to Net rental

10 Years

 Up to 10 years*, within the unexpired lease period (subject to maximum cap)

Up to 15 Cr*

Loan Amount

PNB Housing

Loan Disbursement

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    Disbursement will be made after the property has been technically appraised and all legal documentation has been completed.

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    For purchase of house/ flat from an individual on resale, the loan amount will be paid in lump-sum to the seller at the time of transfer after confirming that the customer has paid his own contribution.

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    For houses/ flats under construction, the loan amount will be disbursed in stages based on the progress of construction.

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    A customer has to invest his proportionate share of the cost, prior to disbursement. The loan can be disbursed either in lump sum or installments according to the requirement of the development authority/ society/ private builder.

Loan Repayment

 Loan repayment is through an escrow account with maximum 120 monthly installments or remaining lease period. Letter from lessee for direct remittance of lease rental in PNB Housing designated account.
 
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Personalized doorstep service.
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Up to 10 Years Loan tenure.
Customized eligibility program.
Numerous repayment options.
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Insurance / Customer Safety at

PNB Housing

PNB Housing, for the safety and extended comfort of its customers, suggests that they should get their property and loan repayments insured to overcome an unfortunate event during the re-payment term of the loan.
For the convenience of customers, PNB Housing has tied up with various insurance companies to offer best-in-class products and services at their doorstep.

PNB Housing Finance Limited offers   wide variety of insurance products to our loan customers.

List of Insurers is given below:

Segment Company Name Products Offered for Loan Customers
Life Insurance Bharti AXA Life Insurance Company Limited Bharti AXA Life Group Credit Protection Pro
HDFC Life Insurance Company Limited HDFC Life Group Credit Protect Plus
PNB MetLife Insurance Company Limited Met Complete Loan Protection
Axis Maxlife Insurance Company Limited Group Credit Life Secure
Acko Life Insurance Company Limited Acko Life Group Credit Protect
Acko Life Group Credit Shield Combi
General Insurance ICICI Lombard General Insurance Company Limited Group Secure Mind (Critical Illness Plan)
Group Personal Accident
Group Home Protect (Bharat Grih Raksha)
Group CHI (Complete Health Insurance – HS360)
TATA AIG General Insurance Company Limited Group Credit Secure Plus
TATA AIG Group EMI Protect
TATA AIG Home Protect Policy
Group Criticare 360
Bajaj General Insurance Company Limited Credit Linked Health Plan
Bharat Griha Raksha Policy
Universal Sompo General Insurance Company Limited Group Credit Protection Policy
Group Health Insurance
Bharat Griha Raksha
Go-Digit General Insurance Ltd Digit Life Healthy Long Term Group Policy
Digit Flexi Griha Raksha Policy
IndusInd General Insurance Company Limited Loanee Kavach (PA+CI+HC)
IndusInd - Group Hospi Cash Insurance
IndusInd Bharat Griha Kavach Group
Health Insurance CARE Health Insurance Company Limited Group Care 360
NIVA BUPA Health Insurance Company Limited Group Health Protect Plus
Star Health and Allied Insurance Co Ltd Star Group Health Insurance Benefit Plus Platinum - Plan A(54 - Critical illnesses) & Plan D (Personal Accident)
Star Group Health Insurance Benefit Plus Platinum - Plan C (Equal Monthly Instalment)
Star Group Health Insurance Benefit Plus Platinum - Plan- E (SGHI)
Disclaimer:

PNB Housing Finance Limited is registered with IRDAI (Insurance Regulatory and Development Authority of India) as a Corporate Agent (Composite) with registration number CA0862.

Participation in the insurance products by the loan customers is purely on Voluntary basis. There is no linkage either direct or indirect, between the provision of financial services offered by PNBHFL to its customers and the use of insurance products. The business is undertaken on fee basis without any risk participation.

Issuance of insurance policies is exclusively done by the respective insurance company based on their underwriting guidelines.

Acceptance / rejection of insurance claims is exclusively done by the respective insurance company.

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  Lease Rental Discounting

Frequently Asked Questions

What is Lease Rental Discounting (LRD)?

A Lease Rental Discounting (LRD) loan allows property owners to avail of a loan against future assured rental income from their leased property. The property must be rented to a Bank, MNC, AA/AAA rated corporate, or Government/Semi-Government undertaking. It helps unlock the potential of fixed rental receipts for immediate funding needs.

What is the full form of LRD in banking?

The LRD full form in banking is Lease Rental Discounting. It refers to a loan facility against rental income from commercial or residential properties leased to credible tenants.The LRD full form in banking is Lease Rental Discounting. It refers to a loan facility against rental income from commercial or residential properties leased to credible tenants.

What documents are required to apply for this LRD loan?

To apply for a Lease Rental Discounting loan, the following documents are typically required:

  • Lease agreement with tenant
  • Property ownership documents
  • Tenant’s credit/rating details
  • KYC documents of the borrower
  • Income proof and bank statements
  • Rental income records

What is the loan tenure / repayment period under LRD?

Under PNB Housing’s Lease Rental Discounting scheme, the loan tenure is up to 10 years, subject to the unexpired lease period and a maximum cap as per policy.

What is the maximum amount / LTV (Loan-to-Value) that can be availed under LRD?

Borrowers can avail a loan amount of up to ₹15 crore, with up to 80% of EMI to Net Rental Value (LTV) under PNB Housing’s Lease Rental Discounting scheme.

Can the lease rental discounting interest rate vary by bank?

Yes, the lease rental discounting interest rate may vary between banks and NBFCs. It depends on factors like borrower profile, tenant quality, property location, and credit rating.
PNB Housing offers competitive LRD rates to suit customer needs.

What is the formula for calculating lease rental discounting?

The lease rental discounting formula generally used is:
LRD Loan Amount = Present Value of Future Rent Receivables – Margin/Discount Rate. Financial institutions like PNB Housing discount the future rental cash flows at a specific discount rate to determine the eligible loan amount.