Commercial Property ​Loan

A commercial property loan allows you to avail of sizeable funding by mortgaging commercial real estate owned by you. The commercial property may be the one you use for your business or any other profit-generating purpose. You can opt for a commercial property loan in case you are looking for substantial financing; for instance, to expand your business or buy expensive machinery.

Here, a commercial property loan refers to a loan against commercial property, wherein you raise funds by mortgaging commercial real estate you already own. Sometimes, however, lenders refer to commercial property loans as loans given to purchase commercial real estate, for instance, in the case of a loan for a commercial shop.

Collateral

To obtain a commercial property loan you must mortgage a commercial premise you own. Depending on your lender’s criteria, this could be an office building, a manufacturing shop, or even a grocery store.

Loan Amount

The commercial property LTV or loan-to-value determines how much funding you can obtain. For instance, if your property is worth Rs.2 Crore and the LTV is 50%, you can obtain a loan of Rs.1 Crore. The LTV offered under a Loan Against Property is generally in the range of 60-75%. You can use a Loan to Value Calculator to estimate how much financing you can avail of.

Repayment

Commercial property loan tenor is typically of up to 17 years, which allows for flexibility in repayment. Commercial property loan interest rates are cost-effective since the loan is backed by valuable collateral. You can use our ​mortgage loan EMI calculator to plan for repayment and make full or partial prepayments to reduce your net interest outgo.

• The biggest advantage of a commercial property loan is the low interest rate at which you can get a loan.
• Another advantage of keeping a ‘commercial’ property as collateral is that in case of an event when you are unable to repay the loan, your residential property remains untouched.

*Terms and conditions apply.

​​For self-employed individuals, the interest rate for commercial property loans is between 9.40%* to 18.00%*. ​A commercial property loan, also known as a commercial real estate loan, is a type of loan specifically designed to finance the purchase or development of commercial properties. Commercial properties are real estate properties that are used for business or investment purposes rather than for residential purposes.​​

Bajaj Housing Finance loan against commercial property eligibility criteria are easy to meet. The following are the criteria you must meet based on your employment type:

For Salaried Applicants:

• Applicants must be residing Indian citizens with a property located in a city we operate in
• Applicants must be aged between 23 to 60 years**
• Applicants should be employed by a public/private firm or an MNC for at least 3 years
• Ideal CIBIL score must be 750 plus

For Self-Employed Applicants:

• Applicants must be residing Indian citizens with a property located in a city we operate in
• Applicants must be aged between 23 to 70 years**
• Applicants should have a vintage of at least 3 years at their current business
• Ideal CIBIL score must be 750 plus

**The upper age limit is considered as the age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

To avail of a commercial property loan, you must provide supporting documents in order to finish your home loan application. A list of the documents you need to produce is as follows:

• Mandatory Documents: PAN Card or Form 60
• Proof of your Identity and Residence: Aadhaar Card/Voter’s ID/Driving License/Passport
• Proof of Income: Latest salary slips, bank account statements for the last 3 months, Income Tax Returns, etc.
• Property-Related: Buyer agreement/title deed, etc. (if applicable)
• Other Documents: Those related to the business (in the case of self-employed applicants)

Yes, you can get a loan against commercial property in India. Once you do so, you will obtain ample, economical finance that you can funnel towards any expense.

Applying for a commercial property loan is simple and straightforward. Once you have checked all the loan details and assessed the EMIs payable, complete the following steps to apply for a property loan.

• Fill the ​Loan Against Property application form with personal details, such as name, date of birth, address, and contact details
• Provide your income details to help with the selection of the best deals as per your financial standing
• Proceed to ‘submit’ the application form

Our representative will get back to you in 24 hours* and guide you through the next steps, which will include document submission and verification.