Loan Against Property

 

Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.

 

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Udyog Loan Against Property

 

Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered. With quick loan approvals and attractive interest rates, our goal is to help your business achieve growth.

 

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Lease Rental Discounting

 

Want to leverage your rental earnings to get a loan? We offer industry-best loan-to-value Lease Rental Discounting, allowing you to explore new business opportunities, fund personal expenses, or even pursue higher education. Unlock the value of your assets without selling them.

 

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Commercial Property Loan

 

Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.

 

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Balance Transfer

 

Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.

 

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Home Loan

 

Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.

 

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Plot Loan

 

Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.

 

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Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.

 

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Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.

 

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Professional Loan for CAs

 

Want to scale your professional practice? We now offer professional loans for doctors and chartered accountants (CAs) to help you expand your existing set-up, hire more staff, buy modern equipment, and fulfil other business requirements to improve and develop your services.

 

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Business Loan for MSMEs

 

If you're an entrepreneur with a small business or an MSME and are aspiring to take your venture to greater heights, you're in the right space! While you hustle for your company's success, we stand prepared to accompany you on this journey. Access unparalleled funding possibilities with our MSME-focused business loans, aligning seamlessly with your endeavors for business growth.

 

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Business Loan for Women

 

Are you a woman entrepreneur with a vision for business growth? We are excited to fuel your ambitions with our women-centric business loans. Whether you're spearheading a small-scale business or a micro enterprise, our MSME-focused business loans are designed to meet your business needs.

 

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Business Loan

 

We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!

 

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Lease Rental Discounting: All You Need to Know



In today's competitive business landscape, maintaining a steady cash flow is essential for stability and growth. However, many commercial property owners face financial challenges due to lengthy sales cycles and limited cash reserves. Fortunately, Lease Rental Discounting offers a beneficial option for these owners to secure the funds they need to support their ventures. 

 

What is Lease Rental Discounting?

 

Lease Rental Discounting (LRD) is a unique financial instrument that empowers commercial property owners in India to leverage the rental earnings from their assets to secure term loans. The loan amount is determined based on the present value of the expected rental income from the property. The borrower can apply for the loan against rental receivables from the lease and offer the property as collateral, making it an attractive option for property owners who require immediate funds.

 

The process is simple: the property owner provides the lender with monthly rent receipts. Based on the property owner’s long-term cash flow and other factors, the lender sanctions a loan amount. The tenants deposit their rent payments directly with the lender via an Escrow Account.

 

Key Features of Lease Rental Discounting

 

  • Competitive Interest Rates: Lease Rental Discounting offers high returns, allowing businesses to secure loans at competitive interest rates, making it a cost-effective option.

  • Increasing Property Use: Property owners can optimize their assets by leveraging LRD to secure a loan against the property while utilizing the rental cash flow, thereby enhancing liquidity.

  • Balanced Cash Flow: The regular rental income, in the form of EMIs, ensures a balanced cash flow for business owners, eliminating concerns about loan repayment.

 

Benefits of Lease Rental Discounting

 

  • Access to Immediate Funds: One of the primary advantages of LRD is that it provides property owners with quick access to funds. By leveraging the future rental income, property owners can obtain secured loans. This enables them to meet their immediate financial requirements, such as expansion plans, debt consolidation, or working capital needs.

  • Competitive Interest Rates: LRD offers competitive interest rates compared to traditional loans, as the rental income acts as a steady source of repayment. The interest rates are usually lower than those offered for personal loans or unsecured business loans. This makes LRD an attractive financing option for property owners looking for cost-effective funding solutions.

  • Tax Benefits: Another significant advantage of LRD is the tax benefits it offers to property owners. The interest paid on the LRD loan is eligible for tax deductions under Section 24(b) of the Income Tax Act, 1961. This reduces the overall tax liability of the property owner, making LRD a tax-efficient financing option.

  • Unlocking Property Value: LRD allows property owners to unlock the value of their commercial property without selling it. By leveraging the rental income, property owners can access a significant portion of the property's value in the form of a loan. This provides them with the necessary liquidity while retaining ownership of the property and benefiting from its appreciation over time.

 

Besides these benefits for commercial property owners, LRD also offers several benefits to lenders. For lenders, the steady cash flows from the rental income act as a reliable source of repayment, reducing the chances of default. This makes LRD an attractive proposition for lenders, leading to a higher likelihood of loan approval.

 

NBFCs are playing a significant role in leading the LRD space with their flexibility, expertise, and customer-centric approach. Godrej Capital also offers Lease Rental Discounting loans on a variety of collaterals including commercial property, industrial property, and warehouses of up to INR 35 crores for a loan tenure of up to 15 years. It offers quick sanction and disbursals, competitive interest rates, a 90% discount on net rentals, and the industry-best Loan to Value (LTV) Ratio of up to 70%. Check out more about the product and its distinctive features here.

 

Lease Rental Discounting has emerged as an ideal financial solution for commercial property owners in India. By capitalizing on rental income, businesses can access much-needed capital, promoting growth and financial stability. As the demand for commercial property financing continues to grow, Lease Rental Discounting presents a win-win solution for both property owners and lenders alike.

 

Disclaimer: The contents of this article are for information purposes only and not a financial advisory. For more details, please refer to the product or service document and/ or connect with our customer representative prior to making any financial decision. The information is subject to update, completion, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.