Planning to buy your own office?
Finaccle can help you get your documents processed fast and get the best interest rates for your new office
2000+
50+
100%
8+ Years
Overview
A commercial property loan is a sum obtained from a bank or non-bank financial institution to purchase commercial property such as a ready-to-move-in office, showroom, or shop.
The bank or NBFC mortgages the borrower's business property and charges an EMI on the loan amount.The interest and principal amounts that must be paid by the borrower to the bank or NBFC are included in the EMI.
The EMI computation is based on three factors: the loan amount, the loan term, and the interest rate. If the rate of interest does not fluctuate, the EMI on the loan amount remains constant during the loan term.
The price of the commercial property is very high, so commercial property loan plays a vital role in purchasing commercial property like ready to move in office, shop or showroom, etc. Loan for purchase of commercial property is a popular category of loan.
Eligibility
Commercial property loan is an agreement between borrower and the lender (bank or NBFC) that regulates the term & condition of loan. Loan eligibility criteria for almost all the banks are different but there are some common loan eligibility criteria which borrower has to fulfill to avail commercial property loan from bank or NBFC. The following are some of the most critical considerations that a bank or NBFC will consider before accepting or rejecting a commercial loan application:
AGE
At the time of commercial property loan application, applicant must be 21 years or above but not more than 60 years in case of applicant is salaried or 65 years in case applicant is self employed professional or self employed non professional, because repayment of the loan has to be completed on or before 60 or 65 years of borrower age.
Cibil Score
A commercial property loan applicant with a high cibil score will receive a speedy loan from a bank or non-bank financial institution. The Cibil score is used to determine whether a business loan application is approved or denied.
Employment Continuity
When someone applies for a commercial property loan, the bank or NBFC verifies their employment history. A person should have three years of experience in the field of business or employment. A steady source of income guarantees the lender that their loan EMI will be paid on time.
Documents
KYC Documents which include PAN card, Aadhar card, Voter Id card, Passport etc
Income documents include Latest 3months salary slip, 3years form-16, 26AS, ITR with computation of income, Copy of appointment letter
One year up to date salary account statement
Loan documents include copy of sanction letter, loan statement, loan repayment schedule, 12month loan account statements, loan closure proof for existing loan.
Process
01
The first step is filling the application form with all the relevant personal details.
02
The next step is to document submission.
03
Next comes the document processing and verification. In this step they will also conduct a credit enquiry to check your CIBIL score and credit report. Your loan application shall move to next step only if the the authority finds that the CIBIL score and credit rating is satisfactory.
04
You need to sign the sanction letter and send it to the lender to accept their offer.
06
You need to pay one time secure fee after you sign the sanction letter.
07
The lender shall perform legal and technical check before disbursing your loan through their representative.
You will receive the final agreement after the lender has performed all their checks. Finally the loan get disbursed into your account.
Why Companies Trust Finaccle
Finaccle provides one-stop integrated Financial-Accounting-Legal solutions to its clients.
You get all Financial, taxation, Accounting and legal solution under one roof.
We are always Accessible, Approachable and Accountable.
We shall take relevant documents from you and apply for TCS registration on your behalf and then you can enjoy all the benefits of TCS registration.
Got a question?
We've got answers.
What is a commercial property purchase loan?
It is a loan taken from a bank or NBFC to buy commercial spaces like offices, shops, or showrooms.
How much loan can I get for commercial property purchase?
What factors affect my EMI for this loan?
What are the key eligibility criteria for this loan?
What documents are required for commercial property loan?
How does the commercial property loan process work?
Can Finaccle help me get better loan terms?
Why should I take advisory before buying commercial property?