A commercial property loan can be an essential financial tool when it comes to growing your company or making real estate investments. You can make an informed choice if you know what a commercial property loan is, how it operates, and the important factors to take into account. This article covers all you need to know about commercial property loans, whether you’re a business owner wishing to buy or refinance an office building, retail store, or industrial property.
Commercial Property Loan Overview
| Interest Rate | 9.5% p.a. onwards |
| Loan Amount | From ₹51 Lakh to ₹25 Crore |
| Loan Processing Fees | Up to 2% |
| Lowest EMI per month | 1044* per Lakh for 180 months |
| Maximum Tenure | 3-15 years (12 years for Industrial/Warehouse) |
| Foreclosure/Prepayment Charges | 4% + taxes |
| Default Interest | 2% per month |
| Repayment Instrument Dishonour Charges | ₹500 per bounce plus applicable taxes |
| Stamp Duty | At actuals (as per state) |
What is a Commercial Property Loan?
A commercial property loan is one type of funding provided by banks and other financial institutions, specifically for the purchase, development, or refinance of commercial property. Commercial property loans are available for income-generating properties like office buildings, warehouses, retail props, or multi-family apt complexes as against residential mortgages, which are written for individual homes.
What are the types of Commercial Property Loans?
- Loan to Purchase New Commercial Property: If your goal is to purchase new commercial property, you should select the “Loan to Purchase New Commercial Property” option when applying.
- Loan to Purchase Resale Commercial Property: If you are looking to purchase a resale business, then go for SMFG Grihashakti’s “Loan to Purchase Resale Commercial Property”
- Loan to Construct Commercial Property: Take a loan under Loan to Construct Commercial Property if you are looking to build a business from scratch.
What are the benefits of a Commercial Property Loan?
- Simple Eligibility Checks and Documentation: All applicants need to do to be eligible for a commercial property loan from SMFG Grihashakti is to fulfill its minimal requirements. After fulfilling the eligibility requirements, a simple documentation procedure follows.
- Flexible Loans to Purchase New, Existing Commercial Properties: Commercial property loans from SMFG Grihashakti are perfect for starting your business by enabling you to buy any new or existing commercial space. SMFG Grihashakti offers commercial loans that can be used to fund the start-up of a commercial real estate project.
- Attractive Interest Rates with Convenient Repayment Tenures: SMFG Grihashakti also offers a wide range of decent commercial real estate interest rates along with simple repayment terms with convenient monthly installments of an extended repayment period.
- Ease of Online Application with Quick Processing: From the convenience of your home or place of business, you can apply for an SMFG Grihashakti Commercial Property loan. Additionally, the website offers a handy EMI calculator that allows you to rapidly estimate your future monthly installment expenditure.
Eligibility
- Minimum Age: 18 years
- Maximum Age: 70 years
- Loan Tenure: up to 30 years.
- Resident Type: Resident Indian
Documentation Process
- PAN Card, Voters ID, and Driving License
- Aadhaar Card, Latest Electricity bill, Ration Card, and Property Tax/Water Bill
- Salary slips for the last three months, two years’ worth of Form 16, and six months’ worth of bank statements showing salary credit.
- ITR with computation for the last two years, CA audited Financial: six months’ worth of bank statements, if applicable.
Conclusion
Are you looking to invest in real estate or grow your business? A loan for commercial real estate might be the answer. This comprehensive guide covers the basics about commercial property loans, including what they are, how they work, and key details such as interest rates and qualifying criteria. Understand how to choose the most suitable financing for your business whether purchasing, building, or refinancing a commercial property.