South Indian Bank Ltd. Head Office T.B Road, Mission Quarters, Thrissur 680 001,Kerala, India
Lease Rental Factoring
For businesses that rely on steady rental income, Lease Rental Factoring provides a seamless way to access liquidity without selling assets. This financing facility is tailored for asset leasing companies and lessors, allowing them to discount rental receivables as per their Master Rental Agreements. By leveraging future rent inflows, businesses can improve cash flow, fund expansions, and reinvest capital efficiently—all while retaining ownership of their leased assets.
With South Indian Bank’s Lease Rental Factoring (LRF) borrower can avail factoring limits from Rs.5 crore to Rs.20 crore, tailored to your specific requirements, and benefit from competitive fixed interest rates linked to the 91-day T-bill for cost-effective financing. The facility offers a loan tenure of up to 5 years, perfectly aligned with lease agreements to ensure smooth financial management.
Flexible Limits – Avail factoring limits ranging from Rs5 crore to Rs20 crore, based on your business needs.
Processing Fee – 1% of the loan amount Maximum Tenure – Up to 5 years, aligned with the lease agreement.
Audited financial statements (past 3 years), Provisional financials
Shareholding pattern, KYC documents (PAN Card, Aadhaar, etc.)
Online Application: Enter your details here and our representative will connect with you.
Offline Application: Visit your Nearest Branch – Bring the required documents and discuss your needs with our loan officer. Branch locator Complete the Application Process – Submit the necessary paperwork for verification. Approval and Disbursal – Once approved, funds are made available quickly.
To get answers to the frequently asked queries
It is a financial facility that enables businesses to discount rental receivables from leased assets, providing immediate access to cash.
Asset leasing companies with at least 3 years of operation, a minimum net worth of Rs1 crore, and rental receivables of Rs100 crore or more.
Rental receivables from leased residential, commercial, industrial properties, and specialised assets.
The facility tenure is aligned with the lease agreement, with a maximum period of 5 years.
The rates depend on the lessee’s rating
AAA-rated: 91-day T-bill + 3.11% AA-rated: 91-day T-bill + 3.61% A-rated: 91-day T-bill + 4.11%
1% of the loan amount.
Yes, financing for new equipment/assets is available under Lease Rental Factoring.
Rs 5 crore.
The loan requires the assignment of rental receivables and hypothecation of leasedassets.
Submit your financial statements, KYC details, and lease agreements at any South Indian Bank branch or apply online.
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