What is a Commercial Property Loan?

Typically, a commercial property loan can be defined as a credit option that can be availed by mortgaging commercial assets. By availing such loan option, one can purchase a new commercial property or renovate an existing one.

Additionally, this mortgage loan facility comes at an affordable rate of interest and with flexible tenor extending up to 20 years. As a means to apply for the same, individuals need to meet its eligibility criteria and submit the requisite documents.

Eligibility criteria for a commercial property loan

Any individual who fulfils these criteria are deemed eligible to avail a commercial property loan.

1. For salaried applicants 

• A resident Indian. 
• Belonging to the age group of 33 to 58 years. 
• Must be employed at an MNC, public organisation or a public sector 

2. For self-employed applicants 

• A resident Indian. 
• Belonging to the age group of 25 to 70 years. 
• Should have a regular source of income. 

3. Required documents for a mortgage loan 

To avail, a mortgage loan individuals need to submit these documents

• Income proof - Latest salary slips, bank account statements and income tax returns. 
• Address proof - Utility bills, ration card, passport, etc. 
• KYC documents - PAN card, Aadhaar card, etc. 
• Documents of the commercial property in question. 

By submitting the requisite documents, eligible individuals can apply for this loan option effectively. Regardless, it must be noted that individuals can purchase only a commercial space with a commercial property loan. Therefore, if they wish to put the loan amount into several uses, they may avail a loan against property as it has no restrictions on its end-use.

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