A Guide to Loan Against Commercial Property

A loan against property could be the answer to some of your financial problems like funding a wedding, meeting the educational or medical expenses of your family, or needing the capital to expand your business. Thus, a loan against any property allows the borrowers to pledge a residential, commercial, or any other type of immovable property as security, against which a loan can be availed from a lender. So, one can also apply for a loan against commercial property by pledging a commercial property even if the property is in use, is vacant, or has been rented or leased. 

Here you can avail of a loan amount of up to 60-70% of your property value. This credit option also comes with reasonable interest rates, longer loan repayment tenor and no end-use restrictions. The application process is fast and hassle-free. Furthermore, some lenders provide customized loan solutions to fulfill the unique needs of each borrower. 

How to Apply for a Loan Against Commercial Property in India

Borrowers planning to apply for a loan should be aware of the loan eligibility criteria, required documents, and how to apply for a loan against commercial property in India for a smooth and seamless loan experience.

Loan Against Commercial Property: Eligibility Criteria 

Self-Employed Applicants:

• Must be an Indian citizen.

• The age limit of the borrower must be between 25 years and 70** years 

• Show business continuity of 5 years minimum 

• The applicant must be the owner of the  pledged property 

• A CIBIL score of more than 750 is a must.

** The higher limit of the age is the age considered at the time of loan maturity.

Salaried Employees

• Should be an Indian citizen.

• The age limit for the borrower is in between 23 years and 62** years 

• 3 years of minimum work experience in a private/public sector firm must be shown 

• The mortgaged property must be owned by the applicant

•  A CIBIL Score of 750 plus is mandatory.

Loan Against Commercial Property: Documents Required

• ID proof– like an Aadhaar card/PAN card/Passport/Voter’s ID/Driving license

• Residence Proof documents – Electricity bills, Phone bills, etc.

• Last 3 months’ salary slip 

• Latest bank statement 

• ITR Certificate 

• Property Documents – Title deed/Agreement/property tax receipts, etc.

Steps to Apply for a Loan Against Commercial Property in India

Given below are the steps to apply for a commercial property loan online:

Step 1: Go to your preferred loan provider’s website

Step 2: Look for the loan application section

Step 3: Enter the necessary details as prompted (name, address, DOB, contact number, employment details, income)

Step 4: Submit your application. 

Once the property loan application process is complete, a representative from the lender’s end will contact you to process and approve your loan application.

Final Words

However, before applying for a loan against a commercial property, applicants should do thorough research with due diligence. They can also use online tools provided by the lenders such as eligibility and EMI calculators to assess loan options and interest rates that suits their needs the best.