India becomes the 2nd fastest-growing economy worldwide. In the last few years, there has been a rapid rise in demand for commercial property. But for most businesses, owning a commercial property is a tough task.
As compared to residential property, commercial property is highly-priced and expensive. Hence, it requires a large sum of money; Be it an office space, commercial shop or warehouse a need of space for establishing a business or scaling up is required for all units.
Commercial property loans can be used for varied purposes including purchasing office space, office complexes, restaurants, hotels..etc.
Get a loan for commercial property purchase for attractive rates. Commercial property loans are offered by several banks and financial institutions.
Commercial Property Loan – Details
|Interest Rate||7.25% Onwards per annum|
|Processing Fee||Up to 1% on loan amount|
|Loan Amount||Starting from Rs. 5 Lakh to Rs. 5 Cr|
|Repayment Tenure||Up to 15 Years|
Typically, the purchase of a commercial property can be broadly classified into 2 categories:
These 2 categories can be further divided into another 2 subcategories such as under construction and ready to occupy.
Generally, lenders prefer financially funding to be ready to occupy commercial property rather than under-construction property.
|Bank Name||Interest Rate|
|Kotak Mahindra Bank||7.25% Onwards|
|Axis Bank||7.50% Onwards|
|ICICI Bank||7.75% Onwards|
|HDFC Bank||7.65% Onwards|
|Bank of Baroda||8.00% Onwards|
|Bank of India||8.35% Onwards|
|State Bank of India||8.45% Onwards|
|Punjab National Bank||8.70% Onwards|
|Indian Bank||8.80% Onwards|
|IndusInd Bank||9.00% Onwards|
|Canara Bank||10.70% Onwards|
Self-employed individuals who are availing commercial property loans are required to meet the eligibility criteria set by lenders.
The applicant is further classified into two types -
Besides, fulfilling eligibility requirements that are set by lenders, the applicant must submit the following documents to qualify for a loan.
Step 1: - Visit Financeseva to Compare & choose the offer that suits your requirements.
Step 2: - Simply click on the get quote straight to your preferred lender. Feed the required details & submit the same.
Step 3: - Within 24 hours representative will be contacting you to explain product features & rates. Only with your final confirmation application will be processed ahead.
As a borrower, you must consider certain things to keep in mind before approaching any lender for commercial property loans as given below:
Builder’s Profile – One of the prime factors that affect approval is the builder profile, the background of a developer who is constructing the property. In such scenarios, lenders pay special attention to under-construction property as it carries a high risk of funding.
Property Valuation - Borrowers who request a higher loan amount as compared to actual property costs are likely to be unqualified for loans. The lender conducts an LTV loan to value ratio to calculate the value of the loan provided against the property.
Technical Evaluation – When it comes to commercial property, lenders double-check the technical specification. This specification includes fire exits, emergency execution, elevators, lifts and so on.