Loan Against Property Commercial
Loan Against Property Commercial - Overview
Loan Against Commercial Property is type of secure loan where one can mortgage his commercial property to borrow a loan against his or her Commercial property. One can borrow Loan Against Commercial Property for various reasons some of which are enlisted below:
• Commercial reasons such as-
1 Setting up a new Business
2 Expanding an existing Business
3 Construction, Repairs, Renovation, etc
4 To meet operational expenditure
5 Consolidation of debt
• Personal reasons such as
2 Medical Emergencies
3 Higher studies of children
It is quite evident that there is no perfect or definite reason as to when a person is eligible to borrow a loan against commercial property, however it cannot be denied that you can borrow loan against commercial property without much hassle owing to the fact that your property serves as the security. Since the commercial property of the borrower remains as security with the bank, the bank is at lower risk of a complex situation that can arise due to non-payment, therefore Loan against Commercial property are quickest and easiest to crack deals when you need to meet your finances.
When you borrow loan against commercial property your property needs to be evaluated. The bank either does the evaluation itself through its representatives or through an agency that has the expertise to evaluate the commercial property. The maximum loan amount that can be borrowed by availing loan against commercial property is Rs. 30 crores. There are other factors that may influence the loan amount that the borrower may agree to lend your which includes your credit score, your monthly income, age, etc.
Rate of Interest:
The rate of interest at which the banks lend loan against commercial property ranges from 9.65% per annum upto 15.50% per annum.
The maximum loan tenure at which the banks lend loan against commercial property is 240 months. Longer the loan tenure of your loan lower and affordable is the EMI that you will have to pay on a monthly basis. <./p>
Banks charge a processing fee of 0.25% upto 2% of the loan amount disbursed by the bank.
Fore-closure charges are charged by the banker when borrower closes his loan in the middle of the loan tenure. Certain banks charge the fore-closure charges as per the NHB, whereas others charge upto 2% on the outstanding amount as fore-closure charge. When planning to borrow any loan you must look at the fore-closure clause and the charges. There are banks that allow fore-closure without levying penalty which can be really beneficial especially when you plan to close the loan as soon as possible
Documentation charges are charges as applicable.
How to apply for Loan Against Commercial Property?
• You can apply for Loan against Commercial Property on Letzbank portal. Put an end to your search by viewing various loan offers, offered by leading banks in the country.
• Top loan offers are displayed in a comparative format and you can easily pick and choose the best loan offer for yourself.
• You can make use of Document locker to upload your critical documents e-save them online for future use.
• Know your credit score for free.
• Apply for Loan against Commercial Property online and avail a waiver on “Service Fee”