A "low interest" loan shouldn't mean you have very little interest in paying it back!
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    Commercial Property Loan

    We found 46 Commercial Property Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    8.5% - 8.7% Floating
    Up to 0.5% (min. ₹5750) One time fee
    5L Min
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.65% - 8.70% Floating
    0.35% (max. 10,000) + S.T.
    15L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.85% Floating
    0.5% (min. ₹11,500) One time fee
    5L - 10Crs
    3-30 Years
    Response Time Within 30 minutes
    Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 8.60% Floating
    Up to 0.5% (max. ₹11,500) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 10.05% Floating
    Up to 0.5% One time fee
    2L - 3Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.70% - 9.25% Floating
    0.50% (min. ₹10,000) + S.T.
    12L - 5Crs
    1-20 Years (10 yrs plot loan)
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.65% - 11.75% Fixed/Floating
    0.50% (min. ₹10000) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.5% - 8.55% Floating
    10,000 + S.T. One time fee
    40L - 5Crs
    1 - 25 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    12.5% - 17% Fixed/Floating
    2% One time fee
    2L - 1Cr
    1-20 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.55% - 8.99% Floating
    ₹5,000 to ₹10,000 + S.T. One time fee
    20L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.67% Floating
    1% One time fee
    5L - 5Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.10% - 9.89% Floating
    0.5% One time fee
    30L - 5Crs
    3-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good To Know
    Eligibility Criteria

    Commercial Property Loan is Rated as "Great!" by 22169 Users

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    Home Loan BYTES FROM OUR KITCHEN

    Commercial Property Loan:

    Many people look to get a loan for an office space, but just don’t know how to go about it. Getting a home loan for a residential property is definitely more popular, easier to get and more widely provided by banks and financial institutions. On the other hand, getting a loan for commercial property is not that easy and the know-how of people in this regards is also quite limited.

    Purchase of Commercial property can be classified into two broad types. They are office space and retail outlet. These two sections can be further divided into two categories like – ready to occupy and under construction. When it comes to financially funding a commercial property under construction, lenders are usually apprehensive. One of the reasons behind this scepticism is that most commercial property buyers are 'investors'. There are times when some people buy commercial property for establishing their own office and business. In that case the lender feels more certain about providing the loan.

    Unfortunately, many banks or financial institutions (despite being well established) do not fund commercial properties, but there are banks which do fund commercial properties – primarily the ones which are ready over the ones under construction. It is advisable to run these checks with your loan advisor before you finalise a project.

    Differences Between Funding a Residential and Commercial Property:

    • The documents required in judging the loan eligibility is almost the same in both the cases.
    • Those availing a loan for commercial properties get lesser Loan to Value (LTV) ratio than the ones availing housing loans. For residential purposes the funding usually ranges between 75-90%, but in case of commercial properties it is limited to about 55%.
    • The Processing fee for residential home loans are usually a standard of Rs. 10,000. There are several housing loan schemes as per which borrowers get heavy discounts on processing fee. On the other hand, for commercial property loan a standard 1% of the loan amount is charged as loan processing fee. There is a chance that some lenders might have the authority to reduce it to a 0.5%.
    • When it comes to rate of interest, unfortunately, the loan borrowers of commercial property have to pay about a couple of percentage higher rate than the borrowers of housing loans. If the commercial property loans borrower takes some simultaneous things like another loan track the rate of interest can go a little more up.
    • Lenders are quite particular about the builder's profile and reputation especially if the property for which the loan is being availed is still being constructed. It is important to ascertain that when will the commercial property be ready and if it will be on time. It is likely that a commercial property will take lesser time to be constructed in comparison to a residential building and the number of occupants will be lesser too. For instance, there can be a single buyer for one entire floor of the property. Similarly, the number of toilets required in a commercial building is smaller and lesser than that of a residential building. To ensure that your property builder is reliable and will give possession as promised refer to his previous projects, market reputation and word of mouth from his previous customers.
    • Ensure that the commercial building is in compliance with every technical specification. Things like lifts, shafts, fire extinguishers, stairs, emergency exits should be properly made and make a note of a technically expert team verifying it thoroughly. As a commercial property, the inspection has to be flawless.
    • The builder needs to obtain all compulsory approvals, clearances from different legal departments and also other departments. It should be a no risk demolition on the property due to any remaining approval. This is applicable to even residential buildings it is stricter when it comes to commercial property.
    • The loan tenure is much lesser for commercial property in comparison to housing loans for residential property. While the loan tenure for housing loan could be as high as 30 years, but for commercial property loan it is mostly restricted to 10 years.
    • The loan margin is also not too much for commercial property loan when compared to housing loans. For example if you buy a commercial property worth 10 crores, you may get only an initial few crores as loan. You might be eligible for higher but some lenders fear the loan turning into a bad debt and hence they limit the loan margin.
    • If the buying cost is hiked by the builder to make the borrower to avail higher loan from the lender, it will be turned down by the evaluation team which the lender is likely to get. Most lenders have many experienced agents who determine the value of the property and
    • If the property is very old then it is extremely difficult to get it funded because of the risk related to the age of the building. There are also other issues like the building might not have a proper sanction plan, proper fire-exits and a series of other things which can now be mandatory in new policy of the bank providing loan. Check this with your adviser. Even if it is a well-known commercial building with large corporates inside, it might not be given a loan for by some lenders. Retail spaces are higher priced in context of rate per square foot in comparison to most commercial building.
    • The institution providing you with the loan, will have some specification about wanting to fund a minimum area in terms of square foot. For retail outlets, there are small where generally bank ATMs and other kiosks are located. These are called ‘vanilla’ areas. They can be as small as 100 sq ft, but as they are located within a retail space, even that area would be quite expensive and you could need a loan for the same. Mostly lenders do have an area specification also for which they can provide a loan. Different lenders will have different policies about this.
    • Remember, though acquiring a commercial property might be more expensive in terms of your monthly financial budget. This happens because the loan tenure is shorter and rate of interest is higher. The down payment that you have to pay from your own pocket is also higher because the loan quantum is low. But keeping all these factors aside, the 'return' on the investment in commercial property is always higher in comparison to residential property.

    News About Commercial Property Loan

    • Lenders cut borrowing costs by up to 155 bps for property loans

      An analysis of lending rates reveals that lenders are cutting borrowing costs by up to 155 bps for some property borrowers, while increasing rates for others to build, and protect market share in volatile markets. Suncorp is offering 155 bps discounts on ‘special offer’ standard variable loans, and 95 bps for some investment loans obtained through its broker network. Steven Kluss, Chief Executive of Suncorp, claims that the increasing costs of funding loans on international capital markets is the reason.

      Martin North, Principal of Digital Finance Analytics said that with the US T30 leading the way, international capital market yield curves are still signaling higher rates. Mortgage rates have to go up, and banks need to build the margin to support higher capital ratios, while keeping dividends strong. This will affect mortgage holders and small business owners. Christopher Foster-Ramsay, MD of Foster Ramsay Finance, said that the major 4 banks in Australia have increased mortgage rates and put down stringent terms and conditions. This has left the way open for Bankwest, Suncorp, ING, and smaller lenders like Newcastle Permanent.

      5th January 2017

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  • Commercial Property Loan Reviews

    • SBI Home Loan
      "Trsutworthy and Reliable"
      0.5 5.0/5 "Blown Away!"
      I took the home loan with the State bank of India and I got the loan amount with them because of trust. Its the nationalized bank and that's the major thing made me to went ahead with them. Within two to three weeks of time, I got the home loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Overall good"
      0.5 3.0/5 "Satisfactory"
      Bankbazaar was good and on time and the experience was also hassle free, because all I had to do was to register my details and once I did I started to receive calls and the team processed my information to the banks. It was nice to get connected to a bank without any difficulty.
      Was this review helpful? 0
      , indore
      Reviewed on May 19, 2017
    • HDFC Limited Home Loan
      "Satisfactory services"
      0.5 4.0/5 "Great!"
      It was a on time process for me at HDFC Ltd. The team processed my details on time and the disbursement for the home loan also happened on time. They were nominal on the rate of interest and processing charges. I got a rate around 9% and in all a satisfying experience.
      Was this review helpful? 0
      , indore
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Average"
      0.5 2.0/5 "Expected more"
      After me applying online at Bankbazaar I was contacted on time and I was informed of the banks I was eligible for. It was a simple process and easy to register as well. The team followed up as well, it would have been better if the voucher was provided as promised.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2017
    • HDFC Limited Home Loan
      "Overall good process"
      0.5 4.0/5 "Great!"
      It was overall a good experience with HDFC LTD for the home loan. But there was a bit of a delay during the process. The whole thing was completed within one month. The rate of interest was nominal. It was around 9% and the processing charges were normal too. It was in line with the market rate.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Supportive services"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar services was pretty much decent. I received a proper response and they were supportive as well in giving me the details. The team was in constantly in touch and they kept tracking my application. I also like the website it is user friendly and helpful.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 19, 2017
    • SBI Home Loan
      "Convenient process"
      0.5 5.0/5 "Blown Away!"
      It was a excellent experience with State Bank of India for the home loan. The process was on time and I also got a good deal as well. The disbursement was on the date I needed it and the after loan services has been smooth too. The rate of interest was around 9% and I am comfortable with it.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 19, 2017
    • UCO Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I had a home loan experience with UCO bank for about past 5 years. I am happy with the loan amount. The tenure for this loan is for 10 years. The rate of interest is 8.6% which is nominal with UCO bank. Overall the home loan service with UCO is really good.
      Was this review helpful? 0
      , jamnagar
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Good financial service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar gave me good follow up on the loan application and they are in touch till my home loan gets completed, I am using Bank Bazaar site around two years, I had taken Health insurance through them previously and this time it was a housing loan and it was a pleasant journey althrough.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2017
    • Axis Bank Home Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      AXIS process is good, they had done a very good job, Only from my end there was a delay because I am not aware about the balance transfer process, that I should have taken a DD, if Axis would have inform earlier that would have been great. AXIS offered an interest rate of 8.5% which is simply great.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Great Experience"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar is too good, it was once I had placed a request for the home loan. They were ready to help me on that process and I got Amazon voucher from Bank Bazaar as they promised. I am 100% satisfied with their service, Thanks to Bank Bazaar, as I had a fanstastic experience upon availing this loan.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2017
    • Punjab National Bank Home Loan
      "Overall service is good"
      0.5 4.0/5 "Great!"
      In short, PNB Housing service is really good, I had taken amount of Rs.38 lakhs for the tenure of 20 years, PNB offered me the least interest of Rs.8.5% which is floating. My EMI amount is 34,000. The loan process got delay but I got better offer from them, Hence I am very happy with their service.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Great Experience"
      0.5 4.0/5 "Great!"
      I am very much happy with Bank Bazaar, Before the loan was disbursed I got follow up calls they were continuously touch me to get the loan. Once the money got disbursement. I received the congratulation message from Bank Bazaar they asked me to reply back, when I replied for that message there is no response. I wish Bank Bazaar should give response after the post process of the loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 19, 2017
    • ICICI Bank Home Loan
      "Hassle Free Experience"
      0.5 5.0/5 "Blown Away!"
      I had done some research about the interest rate with other banks but I found ICICI rate as the best. I am happy with ICICI disbursement, I am going to construct an independent house, based on the property they have disbursed 60% of loan for plot, remaining 40% would be released for construction. To summarize, I am completely fine with ICICI process.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 19, 2017
    • Bank Bazaar Customer Support
      "Surprisingly easy and well-researched"
      0.5 5.0/5 "Blown Away!"
      I was surprised to see the improvements made by Bank Bazaar. Applying for a home loan transfer can never get easier than this. User interface is also very clean and uncluttered. One place to compare all financial offerings by different providers at your convenient time and place. This is definitely going to save you a lot of time and running around. Also it encourages you to be an informed customer rather than a misguided customer. Overall great experience.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 18, 2017
    • HDFC Limited Home Loan
      "Below average"
      0.5 1.0/5 "Really Bad"
      The rate of interest levied was around 8.5% for the home loan with the HDFC limited , also I expected that should be get reduced. Overall , my experience is very much satisfactory. Processing charges were huge with them and the loan amount got disbursed during the month of May.
      Was this review helpful? 0
      , pune
      Reviewed on May 18, 2017
    • Bank Bazaar Customer Support
      "One Stop solution for all Financial products"
      0.5 4.0/5 "Great!"
      Bank Bazaar initial process is very good, they have called me on time and gave the options on loan products. I am using Bank Bazaar website more than three months its quite enough. If its great, Bank Bazaar take initiative after processing the application to the bank and website should be updated much to make better experience.
      Was this review helpful? 1
      , chennai
      Reviewed on May 18, 2017
    • SBI Home Loan
      "Good Experience with SBI"
      0.5 3.0/5 "Satisfactory"
      SBI is one of the largest bank in India, whatever the loan we take they give transparent information they wont take any hidden charges. I have taken the home loan of Rs.25 lakhs with the tenure of five years without processing fee. SBI charged 8.5% of interest it is nominal as per the market.
      Was this review helpful? 1
      , chennai
      Reviewed on May 18, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      Bankbazaar people gave good response for my loan request. They provided a very good service as well. Actually they made my work easy and comfortable. Their website is so simple to navigate and it was helpful to get the details for the loan process.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2017
    • HDFC Limited Home Loan
      "Better Service"
      0.5 3.5/5 "Pretty good"
      I had taken a housing loan from HDFC Ltd. Interest rate is something equal to the market value so I am satisfied with that. The process went good without any hurdles but in the initial stage they provided a very good service, later on I had to followup with them for the process. Customer support was good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2017
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