Commercial Property Loan

A loan against commercial property is an increasingly popular financial option for individuals and businesses looking to unlock the value of their property without selling it. People opt for this type of loan primarily because it allows them to access substantial funds at lower interest rates, while retaining ownership of their assets. The flexibility in loan usage, longer repayment tenures, and the ability to secure high loan amounts make it a great choice for various purposes. These include business expansion, debt consolidation, or managing large personal expenses.

If you wish to opt for a commercial property loan in India, here are essential aspects that you must consider before applying.

• Collateral

If you choose to opt for a commercial property loan, you must first find out the type of commercial property you can mortgage. You can get a loan against commercial property like a grocery shop, office building, manufacturing shop, and so on.

• Builder Records

If you are applying for a commercial property loan against a project that is still under construction, run a background check on the builder. Also, ensure that the builder has already secured all the requisite approvals for the construction. If there are any discrepancies in the builder’s records, your loan may be rejected.

• Loan Amount

The amount of loan that you can get with a commercial property loan depends on the market value of the property. This is called the Loan-to-Value (LTV) ratio. The LTV ratio of commercial property loans is generally lower than that of loans against residential property.

• Repayment

Commercial property loans have a longer tenure in comparison to other loans. It can range up to 15 years, enabling you to repay the loan at a more gradual pace and resulting in a lower strain on your finances. To plan your finances better, you can use a Loan Against Property EMI Calculator and compute the EMIs you are likely to pay.

*Disclaimer: The mentioned details are subject to change at the lender’s discretion.

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.

Salaried Applicants:

• You should be an Indian citizen

• Your age must be between 21 and 70 years

• You should have a minimum work experience of 3 years

• You must be employed by a public company, private firm, or MNC

• Ideally, you must have a CIBIL score of 750 or more

Self-employed Applicants:

• You must be an Indian citizen

• Your age must be between 21 and 70 years

• Your current business should have a vintage of at least 5 years

• Ideally, you should have a CIBIL score of 750 or more

*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

  • Driving licence

• Proof of Address

  • Aadhaar card

  • Voter ID

  • Passport

  • Ration card

  • Utility bills

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

• PAN details or Form 60

• Proof of Employment:

  • For Salaried Individuals - Employer-issued identity card

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

• 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 month

Follow these simple steps to apply for a commercial property loan on Bajaj Markets:

• Click on the ‘CHECK OFFER’ option on this page

• Provide your personal and property-related details

• Choose the lender from the list provided

• Enter the required loan amount and tenure

• Check the details entered and submit the application

Following this, a representative of the loan provider will reach out to you for further proceedings.