Commercial Property Loan

Apply for a Commercial Property Loan

In business, financial flexibility is very important. It gives you the ability to adapt, pivot and evolve at ease and helps in the purpose of future development of your business.

Financial flexibility to businesses also means access to low-cost financing to avoid financial distress or readily fund investment when opportunities come through.

But, given the highly uncertain nature of business, it's difficult to maintain financial flexibility at all times. In such a case, you can opt for a commercial property loan, which is offered against the mortgage of your business properties.

What is Commercial Property Loan?

A loan against commercial property can be availed to fund the growth of the business like purchasing machinery, fund expansion or upgradation.

The mortgaged property acts as collateral and you can continue to use the property during the tenure of the loan.

One can avail up to 60% of the value of the commercial property as a loan and can be availed for a maximum tenure of 15 years.

Benefits of Commercial Property Loan

• Higher Loan Amount: You can avail commercial property loan of up to Rs 5 crore or 60% of the property value to fulfil the needs of your business with ease.
• Attractive Interest Rate: As the loan is secured against your mortgaged business property, the commercial property loan interest rate comes with an attractive interest rate that maximises your benefits.
• Easier Terms and Convenient Process: The loan terms are easier and come with no end-usage restriction, except cannot be used for any speculative or prohibitive activities. And, the whole process of loan advancement is transparent and is disbursed with maximum speed.
• Custom Loan Solution: Every business has its unique needs and a common loan solution for all will not help it to achieve the desired result. The commercial property loan terms are formulated based on the unique demand of the business to offer maximum benefits.

Eligibility for Commercial Property Loan

A loan against commercial property is available to all Indian SMEs. And, the applicant must own residential or commercial property.

The property loan eligibility criteria include, the business should be at least two years old, should be profitable for the last two years and financials should be audited by a chartered accountant.

It also depends on the applicant’s CIBIL score, income-generation ability of the business and repayment capacity.

Commercial Property Loan EMI

Commercial property loan has a maximum tenure of 15 years and the EMI starts in the month after the month, the loan amount is disbursed.

The commercial property loan interest rates range between 9-24%, which depends on the type of asset you would like to mortgage, its current market value, available documents, income generation ability and your credit history.

Once the interest rate is determined, you can calculate the EMI amount by using a commercial property loan EMI calculator, which will help you to plan in a better way and determine the right loan tenure.

Documents Needed

The following are the documents needed to apply for a commercial property loan:

• KYC documents for proof of identity (PAN Card, Aadhar Card, Passport, Driving Licence) and proof of address (Driving Licence, Aadhar Card, Passport)
• Bank statement of last six months and income statements
• Audited financial results
• Income tax returns of last two years
• Documents related to the property to be offered as collateral

Applying for Commercial Property Loan

You can apply for commercial property loans online and offline by visiting the nearest SMFG India Credit branch.

The online loan application process is quick and hassle-free. You can apply directly on our website by filling out the details and uploading the necessary scanned copies of the documents.

Following submission, you will be informed about your eligibility within seconds and our customer service representative will contact you.

The commercial property loan helps you in achieving your goals and meet the financial obligations of your business with ease.

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