Mortgage Loan Against Commercial Property generally take over where business loans finish. It usually lasts from three to 15 years and you can usually find a 60-70% mortgage. This is a measure of loan-to-value ratio to see how much you are borrowing in relation to how much the property is worth.
What is Mortgage Loan ?
A mortgage loan is a type of secured loan where applicant can avail funds by providing his asset as collateral to the lender. A mortgage is usually a loan sanctioned against an immovable asset like a Flat, Floor, House or Commercial Office, Shop, Industry etc. The lender keeps the asset as collateral until the borrower repays the total loan amount.
Key Features of Mortgage Loan Against Commercial Property
- Financial assistance for personal and business needs against mortgage of commercial properties.
- 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 mortgages loans have a higher interest rate than regular home mortgages. Because, they are considered high risk for lenders.
- Commercial mortgages offer better interest rates than regular business loans because they require property as collateral.
- Loan to Value ratio for self 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.
Benefits of Mortgage Loan Against 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.
Types of Commercial Mortgage Loan
There are two types of Commercial Mortgage loan.
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Owner-occupier Commercial Mortgages
This is used to buy property that will be used as trading premises for your business.
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Commercial Investment Mortgages
This is used for property you are planning to let out.
Required Documents for Loan Against Commercial Property
| Mortgage Loan on Commercial Property : Required Documents for Self Employee Business Owner
Main Applicant
Co-Applicant
Property Documents Minimum 13 Years ownership transfer chain |
Loan Against Commercial Property : Required Documents for Self Employee Professional
Main Applicant
Co-Applicant
Property Documents Minimum 13 Years ownership transfer chain |
