Financial instruments such as loans has made our lives so much easier in the last decade. A loan makes it possible for us to achieve our dreams, be it purchasing your dream car or a house. Banks have launched new loan schemes over the years to suit the financial needs of its customers and one such loan is loan for commercial shop purchases. This loan offers finances to an individual who wants to purchase a commercial property to set up their shop or business. Read on to know more about Loan for commercial shop purchases in India.
There are quite a lot of differences between loans for residential property purchase and loans for commercial property purchase in India. Listed below are the major differences between the two.
Listed below are some the popular loans that offers finance for purchase of commercial shops/properties in India:
If you want to purchase a shop or commercial space of your own to give wings to your business, the Indian Bank My Own Shop Loan is the ideal option for you. Some of the notable features of this loan are:
· If you are an individual, professional, or self-employed individual under the age of 50 years, you can apply for this loan.
· This loan is also available for public/private limited companies, propriety firms, and registered partnership firms that have been in the business for not less than 3 years.
· You can take this loan to renovate, purchase, or construct a commercial space for your business.
· This loan will offer you funding up to a maximum amount of Rs.50 lakh.
· This loan comes with a 25% margin which is the promoter’s contribution.
· The loan can be repaid in a maximum term of 120 months.
· The security to be given for this loan is personal guarantee of the directors/partners, or equitable mortgage on the commercial space to be purchased.
The Office Premises loan offered by ICICI Bank can be availed if you are looking to own an office space for your business. This loan can be taken to not only renovate or purchase an existing office property but also to construct one as per your requirements.
Punjab National Bank (PNB) offers a specialized commercial property loan which you can take to construct or purchase commercial property. The notable features of this loan are as follows:
· You can avail this loan if you are a salaried or non-salaried professional or non-professional under the age of 50 years.
· Partnership firms and corporate bodies which have been running successfully for not less than 3 years, are also eligible to apply for this loan.
· The floating rate of interest applicable on this loan ranges from 10.25% to 11.10%.
· The maximum amount that can be obtained under this loan scheme is limited to 70% of the property purchase price.
· The collateral/security applicable for this loan would be the property being purchased using the loan or any other security that the bank considers fit. The bank may require you to provide an additional or interim security as well.
· Under this loan, you, the borrower, will be expected to contribute a minimum of 30% of the property cost, including registration charges and stamp duty.
· The loan amount will be disbursed after the bank has evaluated the property and approved all legal documentation.
· The maximum loan repayment period allowed is 15 years. Repayments can be done via electronic clearing system (ECS) or post-dated cheques.
If you are a self-employed professional or businessman and want to set up a workplace of your own, the HDFC Non-residential Premises Loan can help you achieve that goal. Some of the defining features of this loan are as follows:
If you want to purchase a commercial space like a shop, office, clinic, etc., this loan from DHFL is an ideal option. Some of the features of this loan are:
Commercial enterprises like shops require funds from time to time for routine expenses or even for expansion. If you are an existing shop owner or wish to purchase a commercial space to open a shop, the Bajaj Finserv Loan for Shop can help you on your way. Here are some features of this loan:
This loan from IDBI can be taken if you want to purchase a fully-built, or under-construction commercial property. Some of the notable features of this loan are as follows:
It is very important to do your research before choosing a loan for commercial shop purchase. Though this kind of loan is much more expensive when compared to loan for residential property, the returns from the commercial property investment will make up for it.
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