SIB Lease Rental Factoring – Optimise Your Cash Flow

Convert Future Rentals into Instant Cash

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.

Key Features and Benefits

Flexible Limits

Competitive Interest Rates

Flexible Tenure

Quick processing

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Why Choose South Indian Bank?

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.

Here are the key benefits of SIB Lease Rental Factoring:

Flexible Limits - Avail factoring limits ranging from Rs. 5 crore to Rs. 20 crore, based on your business needs
Competitive Fixed Interest Rates - Attractive rates linked to the 91-day T-bill, ensuring cost - effective financing
Tenure Aligned with Lease Agreements - Loan tenure up to 5 years, matched with the lease period for smooth financial management
Customisable Financing - Available for existing leased assets or to acquire new equipment/assets
Primary Security - Assignment of rental receivables on an exclusive basis and hypothecation of leased assets
Easy processing - Minimal documentation and efficient approvals ensure faster disbursals

Criteria	Details
Business Type	Asset leasing companies/entities
Minimum Business Tenure	3 years
Maximum Business Tenure	Up to 5 years, aligned with the lease agreement.
Minimum Net Worth	Rs. 1 crore
Minimum Rental Receivables	Rs. 100 crore or more (certified by AFS/CA)
Eligibility of Lessee	Minimum 5 years of existence. Minimum external rating of A- (long term).

Category	Details
Interest Rates	Check Interest Rates
Additional Charges	Processing Fee – 1% of the loan amount Click here for Service Charges

Category	Documents Required
Financial Statements	Audited financial statements (past 3 years) Provisional financials
Business & Lease Documents	CMA report covering repayment period Debt profile of the entity
Banking & Tax Records	6 - month bank account statement 6 - month GST return statement
Ownership & Identity Proof	Shareholding pattern KYC documents (PAN Card, Aadhaar, etc.)
Other Supporting Documents	Any additional documents required for assessment

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.

Frequently Asked Questions

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 plant, machinery and equipments.

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%