Introduction to Commercial Property Loan
A commercial property loan allows you to avail of sizeable funding by mortgaging commercial real estate owned by you. The commercial property may be the one you use for your business or any other profit-generating purpose. You can opt for a commercial property loan in case you are looking for ample, affordable financing; for instance, to expand your business or buy expensive machinery.
Here, a commercial property loan refers to a loan against commercial property, wherein you raise funds by mortgaging commercial real estate you already own. Sometimes, however, lenders refer to commercial property loans as loans given to purchase commercial real estate; for instance, in the case of a loan for a commercial shop.
Eligibility Crireria for Commercial Property Loan
Bajaj Housing Finance loan against commercial property eligibility criteria are easy to meet. The following are the criteria you must meet based on your employment type:
For Salaried Applicants:
- Applicants must be residing Indian citizens with a property located in a city we operate in
- Applicants must be aged between 28 to 60 years**
- Applicants should be employed by a public/private firm or an MNC for at least 3 years
- Ideal CIBIL score must be 750 plus
What are the documents required?
To avail of a commercial property loan, you must provide supporting documents in order to finish your home loan application. A list of the documents you need to produce is as follows:
- Mandatory documents: PAN Card or Form 60
- Proof of your identity and residence: Aadhaar Card/Voter’s ID/Driving License/Passport
- Proof of income: Latest salary slips, bank account statements for the last 3 months, Income Tax Returns, etc.
- Property-related: Buyer agreement/title deed, etc. (if applicable)
- Other documents: Those related to the business (in the case of self-employed applicants)
For Self-Employed Applicants:
- Applicants must be residing Indian citizens with a property located in a city we operate in
- Applicants must be aged between 25 to 70 years**
- Applicants should have a vintage of at least 5 years at their current business
- Ideal CIBIL score must be 750 plus
**The upper age limit is considered as the age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
Benefits
- The biggest advantage of a Commercial Property Loan is the low interest rate at which you can get a loan.
- The second advantage is that you get a good LTV ratio of up to 90% of the property value (depending on the loan amount you seek)
- The third advantage of keeping a ‘commercial’ property as collateral is that in the unfortunate event that you are unable to repay the loan, your residential property remains untouched.
*Terms and conditions apply.