"How to get a loan to buy an office space?" the most asked question these days. Getting a home loan is just like a piece of cake but getting funds to purchase a commercial space is a bit tough task. Commercial property is a property that is used for business purposes ranging from a small shop to a huge shopping complex. Commercial property includes offices of all kinds, hotels, restaurants or convenience stores. It is considered as the best way to finance the purchase of offices for business as it gives you an easy access to capital.
What is Commercial Property Loan?
Commercial property loan is a loan that is taken to buy a property that is to be used for business purposes. While other loans like gold loan or say a credit card loan for that matter are typically made to individual borrowers, a loan for commercial property is often made to business entities such as corporations, developers, partnerships, and funds and trusts etc. This type of loan is a flexible and affordable solution with smaller term compared to residential loans. The property purchased will be taken as collateral.
How to Apply
Here is how can apply for a commercial property loan in India with few simple steps:
- Go for the bank that suits your requirements and look for deals and offers.
- Once you have finalized the bank, you will need to fill up the application form.
- After filling in the application the bank will check your Credit score. The bank will also do a residence verification and office verification.
- After the verification process and technical & valuation, the bank will call you for a personal discussion.
- The credit decision is solely depend on the bank. You will be asked to submit your property documents and will have to go through a legal check.
- Once you have signed the agreement the loan will be disbursed in your account.
Features & Benefits
Commercial property loans comes with following features and benefits that makes it a so popular:
- These loans can be availed by salaried employees, Self-employed professionals as well as self-employed individuals.
- The minimum amount provided is 15 lacs. The maximum amount can go as high as 10 crore depending upon the lenders.
- Most of the loans taken to buy commercial property have tenure up to 15 years.
- Commercial loan interest rates are bit higher than other loans.
- These loans have lesser LTV ration and the funding percentage is restricted to 55%.
- Loans can be taken for variable or fixed interest rates.