---
title: Is LRD considered a secured or unsecured loan?
description: Lease Rental Discounting is a secured loan. In this, your leased property and its rental income are used as collateral. If the borrower defaults, the bank has the legal right to recover the loan from the rent or sell the…
url: "https://yazodo.com/help/lease-rental-discounting/is-lrd-considered-a-secured-or-unsecured-loan/"
updated: "2025-12-06"
category: Lease Rental Discounting
tags:
  - Eligibility
  - "Loan Usage & Purpose"
  - LRD
  - LRD Process
---

# Is LRD considered a secured or unsecured loan?

Lease Rental Discounting is a secured loan. In this, your leased property and its rental income are used as collateral. If the borrower defaults, the bank has the legal right to recover the loan from the rent or sell the property if required to recover the outstanding loan amount.