Many people look to get a loan for an office space, but just don’t know how to go about it. Getting a home loan for a residential property is definitely more popular, easier to get and more widely provided by banks and financial institutions. On the other hand, getting a loan for commercial property is not that easy and the know-how of people in this regards is also quite limited.
Purchase of Commercial property can be classified into two broad types. They are office space and retail outlet. These two sections can be further divided into two categories like – ready to occupy and under construction. When it comes to financially funding a commercial property under construction, lenders are usually apprehensive. One of the reasons behind this scepticism is that most commercial property buyers are ‘investors’. There are times when some people buy commercial property for establishing their own office and business. In that case the lender feels more certain about providing the loan.
Unfortunately, many banks or financial institutions (despite being well established) do not fund commercial properties, but there are banks which do fund commercial properties – primarily the ones which are ready over the ones under construction. It is advisable to run these checks with your loan advisor before you finalise a project.
Commercial Property loans can be broadly classified into two categories:
Banks |
Key Highlights |
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Axis Bank |
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HDFC BANK
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Kotak Mahindra Bank
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ICICI BANK
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TATA Capital |
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IDFC First Bank |
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HDFC LIMITED |
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Bajaj Finserv |
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Standard Chartered Bank |
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Punjab National Bank
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Aditya Birla |
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YES BANK
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IndusInd BANK |
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L&T Finance |
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RBL Bank |
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DCB Bank
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Fullerton India |
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Edelweiss |
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Dena Bank |
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Union Bank of India |
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Corporation Bank
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Magma Fincorp |
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HDB Financial
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Karnataka Bank |
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CitiBank |
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DBS Bank
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Indian Bank |
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Eligibility Criteria |
Requirement |
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For Salaried Individuals |
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For Self-Employed Individuals |
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Documents Required |
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Either One of the below mentioned ID Proof Documents |
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Either One of the below mentioned Address Proof Documents |
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For Self-Employed Individuals |
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If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
Any individual, salaried or self-employed, who is capable of repayment and satisfies the eligibility criteria, can avail a commercial property loan.
The repayment tenure can be anywhere between 1-5 years fpr a commercial property loan.
The loan amount given to a certain borrower depends on the evaluation of their repayment ability, credit history, monthly income, and credit reputation.
Yes, pre-payment is usually allowed after a certain lock period is over, for which most lenders might charge a penalty.
A commercial property loan is a secured type loan, where the property acts as the collateral.
The sanction is valid up to 3 months, to allow the borrower ample time to choose the property of their liking.
Repayment can either be done through post-dated cheques (PDCs) or electronic clearance system (ECS).
No, this facility only applies to properties within the country.
The loan can get sanctioned within 7 working days of application. In case of self-employed applicants, this might take a little longer.
One could opt for a Ready to Occupy property loan or an Under Construction property loan, depending on the property in question.