1. Borrower profile & initial credit bottleneck

  • Under the 10-year NBFC LAP at 11.75%, the monthly EMI was ₹24.86 lakh — consuming virtually 100% of the ₹25.05 lakh net monthly rent after 10% Section 194-I TDS and society maintenance.
  • The owner needed ₹6.00 crore of fresh capital to acquire an adjacent warehouse in Bhiwandi, but the NBFC refused top-up funding citing FOIR constraints on operating business ITRs.
  • The lease agreement had a 15% rent escalation every 36 months that the previous lender ignored when computing debt capacity.

2. How the file and cash-flow waterfall were structured

  • Transitioned the borrowing from an income-assessed LAP to a ring-fenced Lease Rental Discounting (LRD) structure with a public-sector bank at 9.10% p.a. over a 12-year tenor matched to the tenant's lease + renewal clause.
  • Factored the contracted 15% triennial rent escalations and deducted exact Section 194-I TDS (10%) and property tax outgoings to demonstrate a 1.28x net rental DSCR across the full tenor.
  • Executed a Tripartite Escrow Agreement routing tenant NEFT/RTGS rent directly into the LRD escrow account, unlocking ₹24.00 crore (64% LTV on ₹37.50 crore valuation) — paying off the ₹17.50 crore LAP and releasing ₹6.50 crore in net equity.

3. Before vs. after sanction comparison