Commercial Property Purchase Loan is a type of Mortgage Loan that is secured through the mortgage of commercial property instead of residential property. As per the concept of loan on Commercial Property, Applicant can avail it to purchase any Commercial Property where his aim to run a business or to renovate it.
What is Commercial Property Purchase Loan ?
Commercial Property is a real estate that is used only for commercial purposes. So if someone operates their small business, retail store through an office or other space, they are operating out of commercial property.
If a person plans to buy a new or existing commercial property, he can take a loan from the Bank / HFCs / NBFCs in the purchase of his commercial property or take a loan and expand it and do any other construction work.
Commercial Property Purchase Loan is generally an option for some business entities, such as a limited liability company or a large corporation. Commercial property purchase loans are generally taken by companies, not individuals.
Key Features of Commercial Property Purchase Loan
- The interest on your commercial mortgage is tax-deductible.
- There are no fixed rates for commercial property mortgages loans. The rate of interest depends on the consent of the applicant and the lender.
- Commercial property purchase loans have a higher interest rate than regular home mortgages. Because, they are considered high risk for lenders.
- Commercial purchase loan offer better interest rates than regular business loans because they require property as collateral.
- Loan to Value ratio for seller occupied commercial is 70% and rented commercial is 60%.
- Property type: Commercial Self Occupied, Commercial Vacant and Commercial Rented, Shop/Showrooms, Office Premises, Banquet Hall and Warehouses.
- Before funding your loan, major Banks/NBFCs/HFCs will typically require a down payment between 30-40% of the property purchase price.
Benefits of Mortgage Loan on Commercial Property
- Capital also increases if the value of the property increases.
- The property can also be rented out to generate additional income.
- Loan amount varies from Rs 5 lakhs to Rs 20 crores.
- Individual properties where finishing work is pending due to specific requirement of customer may be considered.
Top 10 Banks or HFCs that offer hassle free Commercial Property Purchase Loan
- LIC Housing Finance Ltd.
- HDFC Ltd.
- ICICI Bank
- IDFC First Ltd.
- Tata Capital Ltd.
- Can Fin Homes Ltd.
- Indiabulls Housing Finance Ltd.
- IIFL Home Finance Ltd.
- L&T Finance
- Aditya Birla
Required Documents for Commercial Property Purchase Loan
| Commercial Property Purchase Loan : Required Documents for Self Employee Business Owner
Main Applicant
Co-Applicant
Property Documents Minimum 13 Years ownership transfer chain |
Purchase Loan of Commercial Property : Required Documents for Self Employee Professional
Main Applicant
Co-Applicant
Property Documents Minimum 13 Years ownership transfer chain |
