---
title: What is a Lease Rental Discounting (LRD) loan?
description: LRD (Lease Rental Discounting) is a financial product, or also categorised as a Term Loan, which lets you take a loan using rental receipts as collateral. Simply put, you can take a loan from banks or other financial institutions by…
url: "https://yazodo.com/help/lease-rental-discounting/what-is-a-lease-rental-discounting-lrd-loan/"
updated: "2025-12-06"
category: Lease Rental Discounting
tags:
  - Approved Properties
  - LRD
  - LRD Meaning
  - LRD Process
---

# What is a Lease Rental Discounting (LRD) loan?

LRD (Lease Rental Discounting) is a financial product, or also categorised as a Term Loan, which lets you take a loan using rental receipts as collateral. Simply put, you can take a loan from banks or other financial institutions by using the future rent that you will receive from your property as collateral. In the UAE, this facility is available for both commercial and, in some cases, residential properties as well. After meeting all the legal formalities and checking the property, the bank provides a lump sum amount based on your rental income.