This free LRD loan calculator from JR Loan Advisors, Chennai, shows how much a bank may lend against your lease rent. It takes the lower of 2 limits: a share of the rent still due, and a share of property value. The result updates as you type.
The decision this tool helps you make: is your lease strong enough for the amount you need through lease rental discounting, or should you plan a Loan Against Property instead? For the full Chennai guide, read LRD loan in Chennai.
Citeable worked examples (illustrative)
₹5 crore sketch: about ₹8.5 lakh net rent / month, ~9 counted years, ~9.5% rate — rent-cap often lands near mid-single-digit crores before property cap (see hub worked example). ₹10 crore need: usually needs stronger net rent, longer lock-in, or a mixed LAP+LRD — run both caps below.
Formula version on-page · Reviewed by CA Jitendraa Rathi (ICAI 217936). Not a sanction. Evidence report · Sources.
Scenario bands (₹5 Cr+ LRD decision aid)
Illustrative rent / property bands. Caps start at Axis published shares (NPV share / LTV) — change them to match the lender you are speaking to.
| Need | Net rent / month (sketch) | Counted years | Property value | What usually binds |
|---|---|---|---|---|
| ≈ ₹5 crore | ≈ ₹8–9 lakh | ~9 | ≈ ₹10–12 Cr @ 50% LTV | Often rent-cap if lock-in is short |
| ≈ ₹7–8 crore | ≈ ₹12–14 lakh | ~9 | ≈ ₹15–16 Cr | Run both caps in the form |
| ≈ ₹10 crore | Stronger rent or longer lock-in | 9–12 | ≈ ₹20 Cr+ | Often needs mixed LAP+LRD |
Input assumptions
- Net rent = gross rent × (1 − deductions%). Escalation compounds every N years.
- Present value discounts each month's net rent at the loan rate (monthly compounding).
- Result = min(rent-based limit, property-based limit). EMI line uses the same period for comparison only.
- Lock-in often replaces full lease term in the counted years — try both.
Documents this LRD sketch implies
- Registered lease, lock-in covering most of the counted years, and escrow path.
- Tenant quality pack + building title / valuation matching the property cap.
- If rent-cap binds below need: plan a LAP top-up on another asset — see LAP Chennai.
Shareable text: copy the result panel (Indicative LRD loan + binding limit) into WhatsApp with your CA. Owner guide: LRD Chennai · Evidence.
How does the calculator work?
- Net rent: monthly rent less the deductions you enter. Rent rises by the escalation you enter at each step.
- Present value: each month's net rent over the counted period is discounted to today at the loan rate (monthly compounding).
- Rent-based limit: the lender's share of that present value.
- Property-based limit: market value × the lender's cap.
- Result: the lower of the two. The EMI line shows the level EMI on that amount over the same period, for comparison with your starting net rent.
The starting caps are Axis Bank's published LRD rule: 85% of NPV of rent or 50% of property value, whichever is lower (Axis LRD eligibility, checked 14 October 2026). We have not entered any other bank's figure because most banks do not publish one.
Does your rent pay the EMI?
Rent cover = net rent this month ÷ EMI. Example: net rent ₹8.5 lakh and EMI ₹8.0 lakh gives a rent cover of 1.06. Above 1.00 means the rent alone pays the EMI. Below 1.00 means you must add money from your own pocket each month until the rent goes up.
If the property already has a loan, the new bank pays that off first. Cash in your hand = new loan − old loan still due. Example: new loan ₹6.0 crore, old loan ₹2.5 crore, so you get ₹3.5 crore. Ask your old lender for a written payoff letter, since that number decides the takeover.
Banks must show the EMI, rate and all charges in a Key Facts Statement before you sign (RBI Key Facts Statement rule).
Which input changes the answer most?
Usually the rent period the lender will count. Halving it from 9 to 4.5 years cuts the rent-based limit by roughly half, while a few percentage points on the deductions or the rate move it far less. That is why lenders look so closely at lock-in, tenant quality and the registered lease. The tenant and lock-in tests are set out in the Chennai guide.
What if the result is less than I need?
- Rent-based limit binds: ask whether the lender will count the full lease rather than only the lock-in, add a second leased property, or close the gap with a LAP on another property.
- Property-based limit binds: a lender with a higher value cap for your property type, or additional collateral, may help.
- Neither works: a LAP assessed on your income may suit better. Our LAP eligibility calculator shows that side.
Want a banker with 20 years of loan experience to check your real lease? WhatsApp +91 94450 93336. We work on requirements of ₹5 crore and above. You may pay us a fee. We tell you the amount in writing before we start.
Built and reviewed 15 October 2026 by CA Jitendraa Rathi. The method follows published lender practice; the figures are yours.
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 an LRD loan calculator?
It is the same tool as an LRD eligibility calculator. You enter your monthly rent, the deductions, the rent period the lender will count, the loan rate and the lender’s caps. It shows the loan amount your lease rent can support, the property-value limit, which of the two is lower, and the EMI on that amount.
How is LRD eligibility calculated?
Lenders take the rent still due under the lease (after property tax, maintenance and other deductions they apply), discount it to today at an interest rate, lend a share of that present value, and cap the loan at a share of the property’s market value. You get the lower of the two limits.
Which NPV share and LTV should I enter?
Each lender sets its own. Axis Bank publishes 85% of NPV of rent or 50% of property value, whichever is lower (checked 14 October 2026), so the calculator starts there. Change both to match the lender you are speaking to; most do not publish these numbers.
Why does the remaining lock-in matter more than the lease term?
Many lenders size LRD only on rent the tenant cannot walk away from, so a 9-year lease with a 3-year lock-in may be valued closer to 3 years. Enter the period your lender will count, and try both to see the range.
Is the calculator result a sanction?
No. It is an indicative estimate from your inputs. The lender decides after checking the tenant, the registered lease, title, valuation and escrow, and states the amount and rate in its sanction letter and Key Facts Statement.