Any business needs a stable operating place at some point in its running time. Be it a small shop, an office, a whole business floor or a huge business complex, businessmen and entrepreneurs need a piece of property to run their respective businesses. But purchasing a commercial property requires huge investment. This investment cannot be afforded with a mere business loan as it the components like interest rate, tenure and amount does not add up. So many banks and NBFCs provide a special Commercial Purchase Loan to buy a property for commercial and business use only. Businessmen can purchase shops, galas, showrooms, commercial buildings, restaurant property etc. under this loan. Borrowers can get the loan for under construction as well as ready to move in property. This is a secured type of loan so the property is kept as a mortgage to the lender until the borrower pays off the loan in full in given deadline. The amount to purchase the property is decided on the basis of demographics, applicant's credit history and ability to repay the given loan. These criteria also decide the interest rate and tenure. The borrower/s are supposed to pay off the principal amount of loan with the interest in the given tenure.
Nationwide increase in property rate: The increase in the property rate across the nation has made it impossible for businessmen to purchase a commercial property by only using their existing personal savings or business's working capital. There are many hidden charges and processing fees in the process of purchasing a commercial property. So instead of buying a house by spending every last penny of your savings and living in constant pressure of being financially unsecured, you should definitely take a commercial purchase loan.
Large scale financial transactions: Buying a property involves large scale financial transactions. At the time of buying a property, a buyer does not necessarily have the entire amount to his/her disposal. Here commercial purchase loan covers the financial gap and helps you for a smooth financial transaction.
You don't have to spend all of your savings: When banks give away home loans, they finance you up to 70%-80% of the original property purchase price. The borrowers are supposed to pay only 20%-30% of remaining amount. This helps to loosen the financial burden on your shoulders. This way you don't have to spend all your savings purchasing a commercial property.
To determine whether you are eligible to get a commercial purchase loan or not, there are various criteria involved.
Such as income, employment status, loan tenure etc.
The process of getting a commercial purchase loan can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria. The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
There are specific fees and charges applied by banks and NBFCs while processing the commercial purchase loans. These charges are different from the interest rates. These charges differ in value from bank to bank, but the types of charges are the same everywhere.
Banks charge a non-refundable processing fee for your commercial purchase loan request. Different banks charges different amounts as processing fee. This fee is either a specific percentage of the loan amount or a fixed amount of money. Depending upon applicant's profile and considering some terms and conditions, banks often negotiate and lower the processing charges or waive it off completely.
If the borrower is late in paying any of the loan installments, almost all the banks impose late payment charges on the borrower. Be it any reason, financial crunch or some other financial liability or plain oversight, banks do not bend their rules.
Banks offer commercial purchase loans on two types of interest rates: fixed interest rate or floating interest rate. The borrower can between these two interest rates. Every time a borrower applies for switching from fixed rate to floating or vice versa, conversion charges are applied by the bank. These charges are some specific percentage of the principal amount of the loan.
Banks need lawyers to complete the task of verification of property, for which loan will be given. As many banks do not have in-house lawyers, they hire them to complete the task and recover their fees from commercial purchase loan applicants.
Some banks charge administrative fee separately from the processing fee. Administrative fee is applied by banks to compensate for the back-end administrative processes that are performed while processing of commercial purchase loan applications.
Ruloans is one of India's leading financial loan distributors. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for commercial purchase loans with Ruloans' latest online application process. You can choose from a plethora of banks and NBFCs on our website for your loan. We help you borrow right.
We have developed an efficient, smooth and easy process for our consumers to get a commercial purchase loan. Our easy to use online procedure allows consumers to upload their documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.
We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a commercial purchase loan with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs
You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your commercial purchase loan as per your budget and expectations.
Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, to choose the right commercial purchase loan, without charging a dime.
Ruloans understands the value of your documents and keeping them safe and secure. Hence be rest assured as your loan applications are processed electronically with complete privacy and transparency.
Repayment period of loan starts after the entire commercial purchase loan is disbursed to the borrower. If the property is under-construction, then the banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, borrowers are allowed to either repay the principal and interest amount both or just the interest amount or none of the above mentioned amounts at all.
The commercial purchase loan is sanctioned as soon as all the required documents are submitted and verified successfully. This procedure takes anywhere between 10 to 30 days.
Any property document that are submitted as security collateral are returned to the consumer only once the entire commercial purchase loan amount is repaid and the loan on his/her name is closed.
It is not mandatory to apply for a bank account before taking a loan from it. But if you have an account with the bank, you become eligible for a relationship discount. Some banks also provide you additional services along with relationship discount.