The decision this page helps you make: is the LRD rate you have been quoted in line with what banks publish? Every figure is copied from the lender’s own page, with a link and the date we checked it. For how much you can borrow, use the LRD eligibility calculator; for the full Chennai guide, read LRD loan in Chennai.
Rates verified on against each lender’s or RBI’s own page. Next check: daily, and the same day after any RBI or bank rate change.
What is the lease rental discounting (LRD) loan interest rate in 2026?
| Bank & product | Published rate or formula | At current benchmark* | Source |
|---|---|---|---|
| Indian Bank – IB Rental / IB Rental (CRE) | 8.70%–10.70% / 9.20%–11.20%; 0.50% concession for bank, PSU, government or “A”-rated company tenants | Page last modified 27 October 2026 | Indian Bank loan rates |
| Indian Bank – IB Rent Encash | 9.00%–10.50% | As above | Same page |
| Canara Bank – Canara Rent | 9.50%–10.05% (range of loans contracted; mean 9.68%) | RLLR 8.25% from 9 Oct 2026 | Canara interest rate range |
| Bank of Baroda – Loan against Future Rent Receivables | BRLLR + SP + 2.00% (up to 10 yrs) / + 2.25% (above 10 yrs); page shows 10.15% / 10.40% | 10.40% / 10.65% (BRLLR 8.15% + SP 0.25%) | BoB retail loan rates |
| SBI | Not published (EBLR 8.15% + CRP + BSP, one-year MCLR 8.85% from 15 Oct 2026) | — | SBI EBLR |
| Axis Bank | Not published (eligibility rule only: 85% of NPV of rent or 50% of property value, whichever is lower) | — | Axis LRD eligibility |
| Karur Vysya Bank – KVB Rent Fin | Not published | — | KVB loans |
* Our arithmetic: the bank’s published spread added to the benchmark the same bank shows as current. Some product tables still show figures worked out on the pre-hike benchmark. HDFC Bank, ICICI Bank and Kotak Mahindra Bank did not show an LRD rate on the pages we checked, so they are not listed with a figure.
Why is LRD usually cheaper than a Loan Against Property?
Because the tenant pays rent into the lender’s escrow account, the lender is repaid from a known cash flow, often from a rated company, before the money reaches you. Compare the LAP ranges in our Chennai LAP & LRD rate tracker: Indian Bank’s Ind Mortgage term loan is Up to ₹7.5 Cr: 9.20%–10.60%; above ₹7.5 Cr: 9.25%–11.10%, against IB Rental at 8.70%–10.70%. Tenant quality moves the price too; Indian Bank cuts 0.50% when the tenant is a bank, PSU, government body or an “A”-rated company.
Do SBI, HDFC, ICICI, Axis and Kotak publish LRD rates?
Not on the pages we checked. These lenders price LRD case by case, by tenant rating, lock-in, ticket size and the borrower’s overall relationship. Rates quoted on aggregator sites for them cannot be checked against the bank’s own page, so we leave them out. Ask for the benchmark, the spread and the reset frequency in writing; the RBI requires a Key Facts Statement before you sign.
Is my LRD rate linked to the repo rate?
Usually. RBI raised the policy repo rate to 5.50% on 7 October 2026; Bank of Baroda’s BRLLR moved to 8.15% and Canara’s RLLR to 8.25%, and SBI raised its EBLR to 8.15% + CRP + BSP from 15 Oct 2026. A repo-linked LRD moves at your next reset; an MCLR-linked one moves when the bank revises MCLR and your reset date arrives. See banks pass on the repo hike.
We work on LRD requirements of ₹5 crore and above, and we are : the rate is set only by the lender in its sanction letter.
Reviewed 1 November 2026 by CA Jitendraa Rathi. Figures come from facts.json and are re-checked daily.
Written and reviewed by CA Jitendraa Rathi, Chartered Accountant (CA membership number 217936) · Ex-banker, 20 years of experience in credit and lending · LinkedInLast reviewed · Expert review: CA Jitendraa Rathi (ICAI 217936)
Frequently asked questions
What is the lease rental discounting (LRD) loan interest rate in 2026?
On bank pages checked on 1 November 2026, published lease rental discounting rates ran from about 8.70% (lower end of Indian Bank IB Rental) to about 11.20% (top of IB Rental CRE), with Canara Rent at 9.50%–10.05% and Bank of Baroda's rent-receivables loan at about 10.40% on its current BRLLR. Your rate depends on tenant, lease and lender.
Why is LRD usually cheaper than a Loan Against Property?
Because the tenant pays rent straight into the lender’s escrow account, the lender is repaid from a known cash flow, often from a rated company. That lower risk is why some banks price LRD below their LAP range, and why Indian Bank offers a further 0.50% concession when the tenant is a bank, PSU, government body or an A-rated company.
Do SBI, HDFC, ICICI, Axis and Kotak publish LRD rates?
Not on the rate pages we checked. Axis Bank publishes its LRD eligibility rule but not a rate; SBI, Karur Vysya Bank and the large private banks price LRD case by case. We list only figures printed on a bank’s own page and mark the rest “not published”.
Is my LRD rate linked to the repo rate?
Most bank LRD loans are floating and linked to an external benchmark such as the repo rate (now 5.50%) or to MCLR, plus a spread fixed in your sanction letter. When the benchmark moves, your rate moves at the next reset; the spread usually stays the same.