Commercial property loan is an amount borrowed by an individual from bank or NBFC to buy commercial property like ready to move in office, showroom, shop, etc. Bank or NBFC mortgage the commercial property offered by the borrower and charged EMI on the loan amount. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank or NBFC. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed.
The price of the commercial property is very high, so commercial property loan plays a vital role in purchasing commercial property like ready to move in office, shop or showroom, etc.
To Enhance Goodwill And Networth Of The Business: If a businessman have his owned office, shop, or showroom etc. is a key factor of his success and his business growth. It enhance net worth and goodwill of the company. All the business associates like supplier, creditors, investor, banker, consumer, employee, etc. have firm trust and belief in the company stability due to its owned office. Goodwill of the company will enhance business of the company and this will results in overall growth of the businessman.
Rented Office To Owned Office: In India, commercial property rents are very high. If a businessman have his office, shop or showroom, etc. in rented premises, then it is wise to borrow a commercial property loan from bank or NBFC and shift to your owned office. This will not only increase the goodwill of the company but also increases net worth of the company.
Rent will compensate towards EMI (Equated Monthly Installments) and this will also give you capital appreciation. Investment in the property by taking commercial property loan from bank or NBFC will not only give capital appreciation but also peace of mind, social respect and recognition.
High Commercial Property Price: As the price of the commercial property is very high and buyer may not have all the amount to buy the commercial property like ready to move in office, shop, showroom etc., bank or NBFC are there to lend you money in the shape of commercial property loan for which they charge interest on the loan amount.
Regular Rental Income: As the price of the commercial property is very high so rent on the commercial property is also very high. If an individual or businessman buying a commercial property for the investment purpose then it is a good source of regular rental income. This rent will not only compensate your commercial property loan EMI but also gives capital appreciation.
Low Rate Of Interest: Bank or NBFC is offering very low rate of interest on commercial property loan in comparison to private lender or financer, so it’s a win-win situation for both bank and borrower.
Commercial property loan depends upon type of commercial property, an individual want to purchase. As per the need of the borrower bank or NBFC come up with different types of commercial loan product, with unique feature and advantage at lower rate of interest. So it is always advisable to consult with a professional consultant before taking a commercial property loan.
If you need a professional guidance then contact LOAN ON PHONE. We are always with you.Commercial Property Loan can be classified into following ways:
In India, you can take LOAN ON PHONE professional consultancy. We will be there with you for your each step.
Commercial property loan to NRI is not provided by all the bank or NBFC. There are only few banks or NBFC which provides commercial purchase loan to NRI. The requirement and procedure of NRI commercial property loan is different from regular commercial property loan.
Commercial property loan is an agreement between borrower and the lender (bank or NBFC) that regulates the term & condition of loan. Loan eligibility criteria for almost all the banks are different but there are some common loan eligibility criteria which borrower has to fulfill to avail commercial property loan from bank or NBFC.
Following are some key important factors which would be checked by bank or NBFC to accept or reject the commercial loan application:
Documents required for Commercial property loan depends upon the type of employment of an individual.
Documents required for different types of employment are as follows:
Currently the rate of interest of commercial property loan is based upon marginal cost of lending rate (MCLR) plus margin on the MCLR depending upon the bank or NBFC risk taking appetite. In the current commercial loan market, there is a stiff competition between various banks or NBFC. They offers lowest rate of interest to attract prospective commercial property loan buyers.
Commercial property loan rate of interest is at least 1% to 2% higher than residential home loan. It can go up to 4% to 5% if the financial documents have lesser strength or some surrogate loan product is offered. Surrogate loan product is offer when loan eligibility calculated on banking, repayment track records of previous loans, low LTV (Loan to value ratio), turnover of the company, gross profit margin, etc.
As a borrower, it is advisable to compare commercial property loan interest rates of different bank and financial institutions and chose the best one which suits your need.
You may take expert advice of LOAN ON PHONE professional consultants who will help you to choose best bank or NBFC who offers you lowest rate of interest on commercial property loan with ZERO / nominal bank processing fees.
Before taking commercial property loan it is advisable to consider following factors:
Today internet is the source of information and there is a lot of information available about the commercial property loan on internet and we have also tried to give you some information about commercial property loan but the most important question is that Why I should take commercial property loan from LOAN ON PHONE and how do we help you in choosing best commercial property loan ?
Almost all the banks or NBFC claims to offer you the best deal. Most of the people confused with the various offers and deal, so we are here to help you to choose the best commercial property loan.About LOAN ON PHONE
LOAN ON PHONE is the one stop solution for all your financial needs. We are into this business for more than a decade. LOAN ON PHONE will analyze different loan offers and suggest you best deal on commercial property loan with great customer services. Our expert provides best deal on wide range of products to the customer to take right decision.Why Choose LOAN ON PHONE?
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