How to Borrow Mortgage Loan Against Industrial Property ?

Mortgage Loan Against Industrial Property is provided to cater to all self employed non professional customers who are running a manufacturing facility in major industrial zones in India and offering industrial property as collateral.

What is Industrial Property Mortgage Loan ?

Lenders including Banks/HFCs/NBFCs offer Mortgage Loan on Industrial Property by mortgaging a manufacturing unit located in any industrial areas in the country. An industrial property can be a Manufacturing Unit, Industrial Land, Workshop or any other type of property in a defined Industrial zone, owners of a manufacturing unit or workshop can take Mortgage Loan on Industrial Property by offering the industrial property as a collateral security.

The funds can be used for business expansion, factory renovation, machinery purchase or other business related activities. Loan to valuation ratio for Mortgage Loan on Industrial Property can go up to 50-60% of the current market value of the property, depending on end use of the property and loan eligibility of the applicant/borrower. The minimum loan amount lender provides by mortgaging an industrial unit is Rs. 10 lakhs and maximum amount is Rs. 20 Crore or more depending up on income eligibility of individual/s or a business entity and valuation of the property.

Features & Benefits of Mortgage Loan Against Industrial Property

1. Higher term of the loan up to 15 years depending on age of the loan applicant/s and their risk profile.
2. Lower EMI compare to a project loan or unsecured loan.
3. Option to pre-payment of a loan attracts 2-4 percent penalty if a firm/company is part of the loan.
4. Higher loan amount against the valuation of the property which is up to 60 percent of the current market value of the property.
5. In Mortgage Loan Against Industrial Property, Applicant continue possessing the property and use it for manufacturing activity, while the loan is running with the lender. A borrower takes the disbursement of the loan only by depositing the title and legal documents of the property to the lender.
6. Loan Against Industrial Property given to individuals doesn’t attract pre-part payment or closure charges.
7. Processing Fee varies from 0.75 percent to 1.5 percent of the sanctioned loan amount.
8. Lender also offer an overdraft limit against an industrial property or a loan can be part overdraft limit and part term loan.
9. Income of individuals and firms/companies can be clubbed for a higher loan amount eligibility.
10. Self-occupied, rented or vacant commercial property are eligible to offer as a collateral.
11. All the co-owners of the property have to compulsorily be a co-applicant in the loan.

Top 10 Banks / HFCs / NBFCs that offer hassle free Mortgage Loan Against Industrial Property

1. LIC Housing Finance Ltd.
2. HDFC Ltd.
3. Kotak Mahindra Bank
4. Edelweiss Capital
5. ICICI Bank
6. Axis Bank
7. State Bank of India
8. IIFL
9. Aditya Birla Finance
10. L&T Housing Finance Ltd.

Required Documents for Mortgage Loan Against Industrial Property

Main Applicant

1.  Photo
2. Pan Card Copy
3. Aadhar Copy
4. Current Residence Proof
5. Business Registration and Business Address Proof
6. Latest 12 Months GST Return Copy
7. Latest 6 Months Bank Statement Current Account
8. Latest One Year Bank Statement of Saving Account
9. Latest 3 Years ITR with Financial
10. Running Loan Account Statement
11. Processing Fee Cheque

Co-Applicant

1. Photo
2. Pan Card Copy
3. Aadhar Copy
4. Relationship Proof with Main Applicant

Property Documents

1. Copy of Allotment Letter
2. Copy of Possession Letter
3. Copy of Transfer Memorandum
4. Ownership transfer chain from First Allottee

Note :-

• Proprietorship and partnership firms are eligible to take a loan against industrial property being used as manufacturing unit.
• The manufacturing unit can be owned by firm or individuals.
• All the owners of the property should be part of the loan structure.
• A private limited company is also eligible to take a mortgage loan against industrial property.
• All the directors and property owners have to sign the loan application as applicant or co-applicant in the loan.
• Property can be owned by either directors of the company or it can be in the name of the company.
• The property should be approved by competent authorities as industrial unit.