Commercial Property Loan

A commercial property loan allows you to borrow funds by mortgaging your commercial property. These loans fall under the secured category. Thus, the interest charged is usually lower compared to other unsecured loans. Keep reading to find out all you need to know about commercial property loans. 

A commercial property loan has a number of benefits for business owners. Some of these are listed below:

• Higher Loan Amount 

Most banks offer a commercial property loan amounting to 55% of the property’s market value. This can help you meet big-ticket expenses easily.

• Lower Rate of Interest

As it is a secured loan, financial institutions offer these loans at lower interest rates. The commercial property loan interest rates start as low as 9% p.a.  

• Easy Application Process

A commercial property loan does not have extensive eligibility criteria or require a lot of paperwork. This makes them a great choice during emergencies when you’re in need of funds.

To get a commercial property loan, you need to fulfil some basic eligibility criteria. Here is a table highlighting some common criteria that a majority of lenders may require you to fulfil.

• Citizenship - Indian

• Age - 25 to 70

• Employment type - Salaried or self-employed

• Minimum income - ₹25,000 to ₹30,000

• Minimum work experience - 3 to 5 years

*Disclaimer: The eligibility criteria may differ from one lender to another. The details mentioned above are for informational purposes only. 

Provided below is a list of documents that are usually required to apply for a commercial property loan. 

• Proof of Identity: PAN card, Aadhaar card, Passport, Voter ID, or Driving Licence

• Proof of Address: Aadhaar card, Voter ID, Passport, Ration card, and Utility bills

• Property Documents: Title documents and other paperwork related to mortgage and ownership

• PAN details or Form 60
  

1. Proof of Employment 

• For Salaried Individuals - Employer-issued identity card

• For Self-employed Individuals - Business registration certificate, partnership agreement, and so on
  

2. Proof of Income

• For Salaried Individuals - Last year’s ITR, salary slips of the last 2 months, and bank account statements of the last 3 months

• For Self-employed individuals - ITR of the last 2 years, balance sheet, P&L statement, and bank account statements of the last 6 months

In conclusion, a commercial property loan is the best-suited option if you wish to borrow a higher amount at lower interest rates. Make sure to check the eligibility criteria discussed above and keep the required documents handy for a smooth and seamless application process.

On Bajaj Markets, you can browse other credit options like loan against property. The application process is simple and can be completed entirely online.