Is BIG LOANS a bank or NBFC?

No. BIG LOANS is a debt advisory and loan facilitation firm. We are not an RBI-regulated lender and do not lend on our own balance sheet.

What is the minimum and maximum ticket size BIG LOANS handles?

Our focus is ₹100 crore and above. We routinely arrange transactions up to several thousand crore through syndication.

Which industries does BIG LOANS serve?

BIG LOANS is industry-agnostic across manufacturing, real estate, infrastructure, healthcare, energy, IT/ITES, hospitality, NBFC, fintech and more.

What is the typical timeline from mandate to disbursement?

Typically 6–12 weeks for working capital, 10–16 weeks for term loans, and 12–24 weeks for syndicated project finance.

How does BIG LOANS charge its fees?

A modest engagement retainer plus a success fee linked to actual disbursement, governed by a written engagement letter.

Does BIG LOANS guarantee loan sanction?

No. Sanction is the sole prerogative of the regulated lender, based on its credit policy.

Service · LRD

Lease rental discounting, today's capital from tomorrow's rentals.

Convert long-term rental cash flow from your commercial property into upfront capital. Up to 90% of net escrowed rentals, tenor up to 15 years, repayment serviced directly from rental escrow.

Ticket: ₹100 – 2,000 CrLTV: Up to 90% of rentalsTenor: Up to 15 years

Discuss your mandate → See the process

What is Lease Rental Discounting (LRD)?

Lease Rental Discounting (LRD) is a secured term loan where the lender lends against the future rental cash flow from a leased commercial property. The rental escrow becomes the primary repayment source — tenants pay rent directly into an escrow account from which the EMI is auto-debited. Indian LRD typically funds up to 90% of net escrowed rentals, runs up to 15 years, and is priced at a substantial discount to vanilla LAP. Eligible properties: Grade-A office, retail malls, warehouses, hotels with long-term lease arrangements.

Section 01 — Overview

A loan where the tenants pay your EMI.

LRD is one of the cleanest structures in Indian corporate finance. You own a leased property. The tenant pays rent every month. The lender lends a lump sum against that rental cash flow — structured so the rent itself, escrowed into a designated account, services the EMI.

For owners, LRD converts a 9-year lease into upfront capital. For lenders, it's cleaner than LAP — cash flow is contractually committed and bypasses the borrower's P&L. LRD pricing is typically 50–150 bps lower than LAP, and LTV stretches to 90% of net rentals.

LTV up to 90% of net escrowed rentals (post taxes, CAM, reserve)
Tenor up to 15 years — typically unexpired lease + 2 years
Escrow of rentals; auto-debit of EMI
Pricing 50–150 bps below vanilla LAP
Eligible: Grade A office, retail mall, warehouse, hospitality with long-term lease

Typical ticket

₹100 – 2,000 Cr

LTV of rentals

Up to 90%

Tenor

Up to 15 years

Pricing

EBLR + 50–150 bps

Min DSCR

1.20 – 1.30×

Min unexpired lease

5 years

Section 02 — Use cases

When LRD beats LAP.

Six common situations where rental-yielding property owners prefer LRD.

Single-tenant office

A 50,000+ sqft IT-park office leased to top-tier IT/BFSI tenant on 9+9 year lease — classic LRD asset.

Retail mall

Grade-A retail mall with anchor tenants. Rentals from multiple tenants pooled into escrow, lender lends against weighted-average.

Warehouse / logistics

Built-to-suit warehouse for 3PL or e-commerce tenant on long-term lease (10+10 years).

Multi-tenant commercial

Mid-sized office with 6-10 tenants on staggered 5–9 year leases. Lender computes weighted-average residual tenure.

Hospitality long-lease

Hotel asset leased to operator on long-term fixed + variable lease.

Refinance of CF

Developer finishes project, tenants occupy, construction finance refinanced into long-tenor LRD at 200–400 bps lower pricing.

Section 03 — At a glance

LRD vs LAP at a glance.

Feature	LRD	LAP
Primary repayment	Rental escrow	General cash flow
LTV	Up to 90% of net rentals	50–70% of property
Tenor	Up to 15 years	Up to 12 years
Pricing	EBLR + 50–150 bps	EBLR + 50–200 bps
Properties	Rented Grade A only	Any owned

LRD discounts the present value of future rental cash flows into upfront capital.

Section 04 — Our process

How LRD sanctions close.

LRD timelines mirror LAP (6 – 10 weeks). Due diligence focuses on the lease deed and tenant covenant strength.

Lease + property review

Review lease deed, tenant covenant strength, unexpired tenure, escalation, escrow feasibility. Compute eligible loan at 90% of net rentals.

Week 1 – 2

Lender shortlist + IM

IM with property, tenant, lease and cash-flow detail. 4-6 lenders pitched in parallel.

Week 2 – 3

Valuation + legal + tenant NOC

Property valuation, title diligence, tenant NOC for escrow assignment (often the longest step).

Week 3 – 6

Term sheet + sanction

Sanctions evaluated. Selected lender issues sanction with CPs (escrow opening, mortgage).

Week 6 – 8

Escrow + mortgage + drawdown

Escrow account opened, tenant intimated, mortgage registered, drawdown.

Week 8 – 10

Section 05 — Documents

LRD documentation.

LRD documentation is property + lease centric. The tenant's financials matter as much as the borrower's.

Lease documentation

Registered lease deed, renewal letters, rent receipts (12 months), maintenance and amenities terms.

Tenant due diligence

Tenant's audited financials (3 years), credit rating, NOC for escrow assignment, board resolution.

Property documents

Title deeds, occupancy certificate, building plan approval, property tax receipts, encumbrance certificate.

Borrower + corporate

3 years borrower financials, MOA/AOA, board resolution, KYC, beneficial ownership.

Section 06 — Lender universe

Who funds LRD in India.

LRD is flagship for almost every bank and major NBFC. Competition is intense for Grade-A office assets in Mumbai, Bengaluru, Pune.

01Private Banks (HDFC, ICICI, Axis, Kotak, Yes)

02PSU Banks (SBI, BOB, PNB, Canara)

03Real-estate NBFCs (HDFC Capital, PNB Housing, LIC HF)

04Diversified NBFCs (Bajaj, Tata Capital, ABFL)

05Foreign Banks (StanChart, HSBC, DBS for Mumbai/Bengaluru Grade-A)

06AIF Credit Funds (longer-tenor structures)

Section 07 — FAQ

LRD — FAQs.

What rental coverage / DSCR do lenders require?

Typically 1.20 – 1.30× DSCR on a rolling basis. If monthly rental is ₹1 Cr, maximum EMI is ~₹75–80 lakh. The 20–25% buffer protects against vacancy or escalation lag.

What if the tenant vacates mid-tenor?

A vacancy reserve (3–6 months of EMI) is held in escrow. If vacancy persists, borrower must re-lease quickly or top up the escrow. Persistent vacancy triggers default.

LRD on property leased to my own group company?

Yes, with (a) arm's length market-rate lease, (b) tenant group company having independent creditworthiness, (c) sometimes parent guarantee. May attract 10–20 bps premium.

Can the lease be terminated during LRD tenor?

Lease deeds have lock-ins (3 – 5 years office, 9 – 12 years warehouse). After lock-in, tenants can terminate with 6-month notice. Lenders manage this via vacancy reserves.

Is GST charged on LRD interest?

No — GST is not charged on banking loan interest, including LRD. However, the tenant pays 18% GST on commercial rent and avails input credit.

Can LRD be refinanced if rates fall?

Yes, commonly done. With every 50 bps rate movement, refinancing becomes attractive. Floating-rate LRD has no prepayment penalty for individuals (companies pay 0.5–2%). Switching costs recouped in 6–18 months.

Often combined with…

Own a rented property?

Let's discount your lease rentals.

Share the lease deed and rental statement. We respond with eligible loan amount, indicative pricing and lender shortlist within one working day.

Discuss your mandate → mandates@bigloans.in

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