Home Loan

Commercial Property Purchase Loan

To achieve complete self-reliance, a flourishing business needs the right room to grow. Even if you find the property that fits your vision arranging for its finances may not be easy. At Creative Finserve Pvt Ltd we understand your requirements when it comes to business expansion opportunities or the possibilities of a new business idea. And that's why our Commercial Property Purchase Loan make sure that you don't have to compromise on your choice of property and get complete freedom to run your venture the way you want.

A Commercial Property Purchase Loan is a loan that uses commercial property as collateral. A Commercial Property Purchase Loan is a business loan which is secured against a commercial property. Commercial Property Purchase Loan are often used to buy business premises, such as offices, shops, restaurants.

While residential mortgages are typically made to individual borrowers, Commercial Property Purchase Loan is often made to business entities (e.g., corporations, developers, partnerships, funds and trusts). These entities are often formed for the specific purpose of owning commercial real estate.

A Commercial Property Purchase Loan is a loan for a property that is used for business purposes. It's probably the best way to finance the purchase of Office for business because it provides a flexible and affordable solution that gives you access to capital. A Commercial Property Purchase Loan can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.

Interest rates on Commercial Property Purchase Loan are generally higher than on residential loans. Unlike residential loans, the terms of commercial loans are smaller. In Commercial Property Purchase Loan LTV (Loan to value) is normally up to 50% subject to income eligibility.

When evaluating Commercial Property Purchase Loan, lenders consider the loan's collateral; the creditworthiness of the entity (owners), including three years of financial statements and income tax returns; and financial ratios, such as the loan-to-value ratio and the debt-service coverage ratio.

  • Commercial Purchase loans can be availed by Salaried, Self Employed Professionals and Self Employed Non-Professionals
  • Purpose - Purchase of commercial property
  • Min and Max Loan Size - Avail loan from `15 Lacs up to 10 crore.
  • Tenure - Loan tenure of up to 15 years.
  • Avail Maximum Loan Amount.
  • Door Step Service.
  • Realize your dreams faster.
  • Easy Documentation.
  • Attractive Balance Transfer Options available.
  • Easy Repayment Option by EMIs to suit your needs.

There are several steps in the Commercial Property Purchase Loan. Here are the steps in brief:

  • Application form & Document Submission
  • Cibil report check
  • Residence verfication
  • Office
  • Eligibility calculation
  • Technical & Valuation
  • Personal Discussion
  • Credit decision
  • Offer Letter
  • Submission of Property documents & legal check
  • Registration of property documents
  • Signing of agreements and submitting post-dated cheque
  • Disbursement

SELF EMPLOYED INDIVIDUAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.

SELF EMPLOYED PROFESSIONAL

  • An Indian Resident
  • You should be in business for a minimum of 3 years.
  • You should be self employed Minimum 24 to maximum 65 years of age.
  • Your current place of residence should be occupied for a minimum of 3 years in the city.

Salaried

  • You should have 3 years work Experience.
  • Your Minimum age should be 24
  • Your maximum age should be 58/60 at the time of closer of the loan.

To qualify for a Commercial Property Purchase Loan, most of the lending institutions in India require you to be:

Documents Salaried Self Employed Properitorship Firm Self Employed Partnership Firm Self Employed Pvt Ltd / Ltd
Application Form With Photograph Duly Signed Home Loan Home Loan Home Loan Home Loan
Clear Pancard Copy, (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Latest Residence proof (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Latest Office Proof (Applicant & Co-Applicant) Home Loan Home Loan Home Loan Home Loan
Last 3 Months Salary-Slips Home Loan Home Loan Home Loan Home Loan
Last 12 Months Bank Statements Home Loan Home Loan Home Loan Home Loan
Processing Fee Cheque Home Loan Home Loan Home Loan Home Loan
Form 16 / Income Tax Returns Of Last 3 Yrs Home Loan Home Loan Home Loan Home Loan
All Loan Sanction Letter If Any Home Loan Home Loan Home Loan Home Loan
Business Profile Home Loan Home Loan Home Loan Home Loan
Proof Of Business Existence ( Gumasta License , Sales Tax Certificate , Form 26AS , ) Home Loan Home Loan Home Loan Home Loan
Last 3 Years Income Tax Returns With Computation Of Income Home Loan Home Loan Home Loan Home Loan
Last 3 Years CA Certified / Audited Balance Sheet And Profit & Loss Account Home Loan Home Loan Home Loan Home Loan
MOA /AOA Home Loan Home Loan Home Loan Home Loan
Partnership Deed Home Loan Home Loan Home Loan Home Loan
Company Pancard Clear Copy Home Loan Home Loan Home Loan Home Loan
Shareholding Pattern On Letterhead Home Loan Home Loan Home Loan Home Loan
Sundry Debtor & Creditor List Last 1year Home Loan Home Loan Home Loan Home Loan
Property Papers ( Chain Of Agreement & Share Certificate ) / Draft Agreement Home Loan Home Loan Home Loan Home Loan

Commercial Property Purchase Loan EMI Calculator


Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.

In EMI calculator you will be able to analysis the total output of interest you will be paying. In this mechanism you will be able to know the total EMI paid and the interest payable. In EMI Calculator you can also come to know how much interest you will be paying throughout the tenure. To work effectively on EMI Calculator you must be aware of the Loan Amount and the rate of interest. In EMI calculator you will come to know the total interest paid at the end of the Loan tenure.

If you are not satisfied with the calculator output please call us for a personalized solution for your requirement.

Important information

All applications for credit are subject to Banks normal credit approval criteria. Terms and conditions are available on application of every bank in which loan will be applied.

This is an estimate and it is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. To apply for a loan you must complete an application.

The repayment amount and total interest payable excludes Processing fees and Mortgage Insurance / Life Insurance.

If a Variable Rate Loan is selected, the interest rate will be subject to market change throughout the term of the Loan.

Results are based on amortised scheduled repayments and, once any discount or fixed rate period expires, the current variable rate or the variable rate is applied for the remainder of the loan term (unless another fixed rate period is taken).

Creative Finserve will not store the information provided in this calculator.

When can I apply for a Commercial Property Purchase Loan?
Customers who are into business profile has a tendency to invest or increase their net assets Customers tend to invest in real estate market which is why commercial Property would be a good option. Commercial property is nothing but an investment for commercial use. So we at Creative Finserve work closely with, and understand small to medium businesses, we can deliver exactly the right commercial property loan for you. We suggest you to apply for Commercial Property Purchase Loan once you intent to buy a property so that you will come to know the eligibility of your Commercial Property Purchase Loan which will help you to identify the property according to your budget. Even if the property is selected you can apply for a Commercial Property Purchase Loan.
How can I get personalized solution through Creative Finserve for my Commercial Property Purchase Loan?
We professional at Creative Finserve puts our best effort to give you a complete personalized solution. We take the pain of coordinating with various banks for you to give the best offer and service available in Commercial Property Purchase Loan.
Who are eligible for Commercial Property Purchase Loan?

The general factors taken into account while determining the eligibility of Commercial Property Purchase Loan are listed below:

1. Age (Min. 21 Year)

2. Maximum 58 age at time of closure of the loan for the salaried

3. Maximum 65 age at time of closure of the loan for the self employed

4. Total work / business Experience 3 yrs

5. Indian resident

Who can avail a Commercial Property Purchase Loan?
Any working individual who is salaried or self employed and who is capable of paying EMI can avail a Commercial Property Purchase Loan.
What is the process in availing a Commercial Property Purchase Loan?

The process involved in availing the Commercial Property Purchase Loan is as follows:

• Application

• Processing

• Documentation

• Property Valuation

• Personal discussion

• Sanctioning of the Loan

• Disbursement

What are the loan tenure options for Commercial Property Purchase Loan?
Commercial Property Purchase Loan generally is available for 1year to 15 years.
What are the documents required for applying for a Commercial Property Purchase Loan?

Following are the list of the documents for Commercial Property Purchase Loan:

For Salaried

• Application form with photograph

• Identity Proof and Address Proof

• Latest Salary Slips (Latest 3 months)

• Form 16 / appointment letter

• Bank Statements (Last 12 months)

• All Loan Sanction Letter(if any)

• Processing fee cheque

• Spouse income(if required)

For Self-Employed:

Application form with photograph

Identity proof and Address Proof

Proof of business existence

Last 3 years ITR

Last 3 years P&L and Balance Sheet with Audit Report

Bank Statements (Last 12months)

All Loan Sanction Letter (if any)

Processing fee cheque

Spouse income

How Much Commercial Property Purchase Loan can I avail from the bank?
It mainly depends on your financial profile, credit reputation, and your loan repayment ability. Lenders evaluate these factors to consider what the amount of a Commercial Property Purchase Loan should be.
What is the range of interest rates offered in Commercial Property Purchase Loan?
In Commercial Property Purchase Loan interest is calculated on a monthly reducing basis which means interest is calculated on outstanding principal amount after payment of each installment. At presently banks are offering in the range from 12% to 16%.
What is Commercial Property Purchase Loan EMI?
EMI or Equated Monthly Installments is a combination of Interest and Principal you will be paying to the bank every month.
In Commercial Property Purchase Loan can I prematurely (prepay) close my loan?
Closing loan prematurely is called full closer of the loan. This is very much possible in Commercial Property Purchase Loan once the lock in period of the loan is over. This exit clause is always mentioned in the Loan Agreement signed with the bank.
And how long is this sanction letter valid in Commercial Property Purchase Loan?
In Commercial Property Purchase Loan the sanction letter is valid for 3 months to give you sufficient time to choose a office/shop of your choice.
What security/collateral do I have to provide in Commercial Property Purchase Loan?
The property which you will be purchasing itself will be mortgage with the bank.
Does the property have to be insured in Commercial Property Purchase Loan?
Yes, property has to be insured in case of Commercial Property Purchase Loan.
What is the Floating Rate of Interest in Commercial Property Purchase Loan?
This is the rate of interest that fluctuates according to the market lending rate.
In Commercial Property Purchase Loan can I apply jointly with my spouse? Will both the income be taken into consideration for calculating the loan amount?
Yes, your incomes can be clubbed for the purpose of calculation of the loan amount. This can be done either when the property is jointly held with the spouse or the spouse stands as a guarantor.
In Commercial Property Purchase Loan can I apply jointly with my Partners/Directors? Will both the income be taken into consideration for calculating the loan amount?
Yes, your incomes can be clubbed for the purpose of calculation of the loan amount. This can be done either when the property is jointly held with the Partners/Directors or the Partners/Directors stands as a guarantor.
How can I repay my loan in Commercial Property Purchase Loan?
The repayment of loan is done through Equated Monthly Installments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS).
How much time does it take for the disbursement of Commercial Property Purchase Loan?
The processing of Commercial Property Purchase Loan usually takes approx 15 working days after all the documents are submitted, Subject to clearance of legal and technical of your Property papers.
Should I compare Commercial Property Purchase Loan online?
Comparing Commercial Property Purchase Loan online depends on many factors such as your salary/income, company in which you are working, your obligation (existing loan) etc. In online approach you will get general comparisons while you can get a personalize solution from Creative Finserve, which will help you with the best rate of interest and services for Commercial Property Purchase Loan.
Should I apply Commercial Property Purchase Loan online?
There is no process for applying online Commercial Property Purchase Loan unless and until you have a relationship with the same bank. Mandatorily you need to submit relevant documents and sign the application form to complete the formalities. Creative Finserve gives you a personalized solution for Commercial Property Purchase Loan, so why to confuse yourself with online approach if you can get better rate of interest and maximum eligibility through Creative Finserve.
Who all can apply Commercial Property Purchase Loan online?
Customers having online banking can approach their respective banks for Commercial Property Purchase Loan through net banking and get information about Commercial Property Purchase Loan. Applying online Commercial Property Purchase Loan will give you information of your bank, and if you apply through us you will get information about other banks for better rate of interest, foreclosure charges, tenure and processing fees.
What are the drawbacks on applying for Commercial Property Purchase Loan online?
Applying online Commercial Property Purchase Loan will give you information about particular bank. And if you apply through us our professionals will get exciting offers from other banks for better rate of interest, foreclosure charges, tenure and processing fees.
What is Commercial Property Purchase Loan eligibility calculator?
Commercial Property Purchase Loan eligibility calculator is a mechanism where you can calculate your Commercial Property Purchase Loan eligibility by sharing your information such as your salary/income. This loan eligibility calculator cannot get you the exact loan amount so we recommend you to get in touch with our professional team to serve you better.
How to get best rate of interest for Commercial Property Purchase Loan?
Rather than hunting in the market or approaching unprofessional consultants for better offers give your few details and upload your few documents and get a personalized solution for your Commercial Property Purchase Loan for better rate of interest in few minutes from our professional team.
How will I get best rate of interest for Commercial Property Purchase Loan?
Since Creative Finserve has immense experience and tied up with all multinational and private banks, we would be able to guide you and give you the best deal available in Commercial Property Purchase Loan
What is Commercial Property Purchase Loan EMI calculator?
Commercial Property Purchase Loan emi calculator is a process where you will be able to come to know the exact Commercial Property Purchase Loan emi (installments) which includes principal and interest component according to your requirements.
How to choose the right bank for my Commercial Property Purchase Loan?
Choosing a right bank for Commercial Property Purchase Loan is a cumbersome process, Creative Finserve guides you properly according to your requirements and gives you a personalize solution for your Commercial Property Purchase Loan.
How I will come to know whether my Commercial Property Purchase Loan is sanctioned or rejected?
Once your Commercial Property Purchase Loan is sanctioned or rejected you will get a sms alert or call from the bank or and if you have applied through us we will coordinate with the respective banks and inform you.
Is balance transfer of Commercial Property Purchase Loan suggested?
It depends upon the current rate of interest of your existing Commercial Property Purchase Loan as against the rate of interest available in the market. We recommend you to compare both the offers in our loan comparison calculator or else call us to get a personalized solution for your Commercial Property Purchase Loan.
What is the difference between Commercial Property Purchase Loan & Mortgage Loan?
The loan availed to purchase a new commercial property (builder purchase or resale) is called Commercial Property Purchase Loan. Loan taken by hypothecation of property (residential / commercial) is known as Loan Against Property. The money procured by this type of loan can be used for many different purposes.
How do I know about my eligibility for a Commercial Property Purchase Loan?
Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal. So we have an option of uploading the documents in our website, were we will help you to calculate your eligibility.
How long will it take for the financial institution to approve my Commercial Property Purchase Loan?
Most of the Lenders sanction Commercial Property Purchase Loan for salaried customer in 7 working days for Self Employed the time taken for sanctioning a case can be longer as various verification and calculations are involved & there is also "Personal Discussion" done at the place of customer office.
What is EMI in Commercial Property Purchase Loan?

"EMI" is Equated Monthly Installment.

The installment paid while servicing the loan is equal for the whole tenure.

The composition of EMI = Principal Amt + Interest.

What is Fixed interest rate in Commercial Property Purchase Loan?

In Commercial Property Purchase Loan Rate of interest will remain same throughout the tenure is fixed interest rate.

What is Reducing interest rate in Commercial Property Purchase Loan?

Interest which is charged on the reduced outstanding principal amount (Loan Amount).

What is Floating interest rate in Commercial Property Purchase Loan?

It is also called Variable Rate of Interest:- Here the rate of interest changes according to the banks policy, it is also known as floating Rate of Interest.

Can the loan amount be decreased after the Commercial Property Purchase Loan is sanctioned?

Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.

Can the loan amount be increased in Commercial Property Purchase Loan after sanctioning?

Yes in few conditions you can get the loan amount enhanced / revised.

For E.g

If the income eligibility is there and you have applied for lesser loan amount or,

If you have not added co-applicants income while applying the loan or,

If your salary has increased after your Commercial Property Purchase Loan sanctioned than with the revised salary slip you can ask bank to increase the loan amount.

What does "Pre-Approved Property" mean in Commercial Property Purchase Loan?
Pre Approved property Commercial Property Purchase Loan is also called as APF [Approved Project Finance]. This means that the developer had got the legal aspect of the property approved form various banks and NBFC's, Under such circumstances banks need not required to do technical verification if the customer has selected the property in the said project.
What is Carpet area?

Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.

What is approved plan?

The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.

What is full form of CC & explain ?

CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Commercial Property Purchase Loan CC is very much important document required for sanctioning your loan specially when it is under construction project.

What is full form of OC & explain?

OC means Occupation Certificate. This certificate issued by the local municipal body to the builder /developer once the said building is complete in all respects and fit for occupation. During Commercial Property Purchase Loan OC is very important document required for sanctioning your loan.

What dose conveyance deed mean?

Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.

What is a stamp duty?

It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.

Where is the registration done?

The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.

What is Chain of Agreements in Commercial Property Purchase Loan.?

In Commercial Property Purchase Loan chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Commercial Property Purchase Loan process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.

What is the minimum area needed for a commercial property In Commercial Property Purchase Loan.?

The minimum area required in Commercial Property Purchase Loan is 250sqft.It may vary from bank to bank.

What is legal Verification of the property and who does it in Commercial Property Purchase Loan?

In Commercial Property Purchase Loan legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.

What is called as technical verification and who does it in Commercial Property Purchase Loan process?

In Commercial Property Purchase Loan technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgage and free from all legal issues.

What is full form of OCR in Commercial Property Purchase Loan?

OCR means Own Contribution Receipt. It is the amount paid by the purchaser to his seller and a receipt acquired for the same. It is advisable for the purchaser to pay his own contribution to the builder / seller by cheque and obtain receipts for the same.

What is the full form of NOC in Commercial Property Purchase Loan & who issues it?

NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format.

What is Full form of MV & explain?

MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.

What is the full form of LTV in Commercial Property Purchase Loan.?

LTV - Loan to Value Ratio

It is the percentage of Loan amount that can be provided with respect to the Value of the property.

In Commercial Property Purchase Loan When is the case disbursed & cheque given to buyer?

The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.

What is equitable mortgage in Commercial Property Purchase Loan?

An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.

In Commercial Property Purchase Loan can a fixed rate loan be converted to a floating rate loan and vice versa?

Yes! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement. It completely depend on the bank which you are applying for.

Can I get a Commercial Property Purchase Loan for purchasing a property overseas?

NO! One cannot get Commercial Property Purchase Loan from banks to purchase property overseas.

What happens to processing or administrative fees if I don't avail of the disbursement in Commercial Property Purchase Loan?

Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier.

Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.

What is Commercial Property Purchase Loan Balance Transfer?

Commercial Property Purchase Loan balance transfer is a process where the customer transfers the existing Commercial Property Purchase Loan from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.

What does 'Agreement to Sell' mean? Does it have to be registered?

The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.

In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

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