The loan is the second major investment for any company, next to land. As with any major purchase, a commercial property loan needs to be carefully planned out with all its details in place before signing on the dotted line. The article provides information on interest rates and how it’s calculated for loan against commercial property in India, EMI and how to apply online for it?
What is a Loan against Commercial Property and How Does it Work?
A loan against commercial property is a type of loan that allows borrowers to use their commercial property as collateral. This can be a helpful option for business owners who need access to capital but don’t want to put their property up for sale.
The way it works is that the borrower gets a loan from the lender using their commercial property as collateral. The loan amount is typically based on a percentage of the appraised value of the property. If the borrower defaults on the loan, the lender can then sell the property to recoup their losses.
One advantage of a loan against commercial property is that it can provide business owners with access to capital that they might not otherwise have. It can also be a more affordable option than taking out a traditional bank loan, since the interest rates are typically lower.
However, there are also some risks associated with this type of loan. If the borrower defaults, they could lose their property. Additionally, if the value of the commercial property decreases, the borrower may end up owing more money than they originally borrowed.
Before taking out a loan against commercial property, it’s important to understand both the benefits and risks involved. This will help you make an informed decision about whether or not this type of financing is right for your business.
loan against commercial property interest rates
The interest rate for loan against commercial property in India varies from bank to bank. It ranges from 9.50% to 11.00%. The processing fee is also not that high and it is generally 0.50% to 1.00% of the loan amount plus taxes.
The minimum loan amount that can be availed is Rs. 10 lakhs and the maximum loan amount is Rs. 3 crores. The repayment tenure for this type of loan is generally 5 years to 20 years.
Calculate EMI for loan against commercial property with emi calculator
If you’re planning to take out a loan against your commercial property, it’s important to calculate your EMIs in advance. This will help you budget for your loan repayments and avoid any nasty surprises down the line. Luckily, there’s an easy way to do this – with an online EMI calculator
Simply enter the amount of money you want to borrow, the interest rate and the repayment period into the calculator. The results will show you how much your monthly repayments will be. You can then use this information to plan your budget and make sure you can afford the loan.
Loan against Commercial Property: State Bank of India (SBI)
If you’re looking to take out a loan against your commercial property, the State Bank of India (SBI) offers a competitive option. With low interest rates and a long repayment period, an SBI commercial property loan can help you free up the capital you need for your business.
To be eligible for an SBI commercial property loan, your property must be located in India and used for commercial purposes only. The loan amount will be based on the value of your property, and you’ll need to provide proof of income and assets as well as a business plan.
Repayment periods for SBI commercial property loans are typically 20 years, but can be extended up to 30 years if needed. Interest rates are currently around 9%, but may vary depending on market conditions. There are no prepayment penalties, so you can pay off your loan early if you wish.
If you’re considering taking out a loan against your commercial property, the State Bank of India is a good option to consider. With low interest rates and flexible repayment terms, an SBI commercial property loan can help you get the funding you need for your business.
Apply Now for Loan Against Commercial Property in India