Commercial Property ​Loan

A commercial property loan enables you to secure substantial funding by pledging a commercial property owned by you as collateral. The property may be used for your business operations or any other income-generating activity. Such loans can be useful when you require high-value financing for purposes such as business expansion or purchasing costly equipment.

In this context, a commercial property loan refers to a Loan Against Property, where funds are availed against an existing commercial property. However, in some cases, the term may also be used for loans taken to purchase commercial real estate, such as a commercial shop or office space.

With a commercial property loan, you can avail of financing by mortgaging an existing commercial property owned by you. The process usually involves the following key aspects:

Collateral

To avail of a commercial property loan, you need to pledge a commercial property owned by you as security. Depending on the lender’s eligibility criteria, the property could include an office space, a manufacturing unit, a retail outlet, or a similar commercial establishment.

Loan Amount

The loan amount sanctioned depends on the loan-to-value (LTV) ratio offered by the lender. For example, if your commercial property is valued at Rs.2 Crore and the applicable LTV is 50%, you may be eligible for a loan of up to Rs.1 Crore. Under a Loan Against Property, lenders generally offer an LTV of around 60% to 75%.

Repayment

Commercial property loans usually have a long repayment tenure. Since the loan is secured against a valuable asset, the interest rates are generally competitive.

​​For self-employed individuals, the interest rate for commercial property loans is between 9.30%* to 12.00%*. ​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.​​

Lenders generally accept various types of income-generating properties as collateral for a commercial property loan. Some commonly accepted commercial properties include office spaces, retail shops, showrooms, warehouses, manufacturing units, and other business establishments.

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 28 and 58 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 25 and 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***:

• 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)

***This list is indicative.

A residential property loan is availed of against a residential property, such as a house or apartment, which serves as collateral. On the other hand, a commercial property loan is availed against a commercial property like offices, shops, or warehouses.

Commercial Property Loans and Home Loans differ in terms of the property financed, end usage, and repayment tenure. Here’s a quick comparison between the two:

With Bajaj Housing Finance, you can avail of a loan against your commercial property and benefit from:

• Long repayment tenure
• Minimal documentation and quick approval
• Competitive interest rates and sizeable loan sanctions, based on eligibility

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 a quick and hassle-free process. After reviewing the loan details and estimating your EMIs, you can follow these simple steps to apply:

1. Assess our Loan Against Property application form

2. Enter your basic details, including your name, date of birth, address, and contact information.

3. Share your income details to help assess your eligibility and identify suitable loan options based on your financial profile.

4. Review the details and submit your application form online.

Once your application is submitted, a representative will connect with you within 24 hours* to assist you with the next steps, including document collection and verification.

*Terms and conditions apply.

Bajaj Housing Finance offers loans against commercial property with tenure extending up to 15 years. This ensures that you repay the loan comfortably, through manageable EMIs.