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

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

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

"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.

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

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

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.

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

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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

LTV - Loan to Value Ratio

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

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.

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.

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.

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

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.

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.

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.