In the past few years, the Indian economy has witnessed a major boost in the commercial property sector. A survey conducted in 2018 shows various investor-friendly reforms undertaken in the past years that have been instrumental in this growth.
This survey, conducted by Colliers International, a leading property consultant in the country, concluded that about 63% of the total real estate investors chose office assets as the top preference for their investments. This preference can be owed, to an extent, to the easy availability of commercial property loans against such assets, which allow individuals to avail funding of a high corpus for their financial requirements.
With an increase in the demand for these properties, an individual’s requirement for advances to purchase the same has also become much higher compared to other assets. To meet these requirements, financial institutions around the country have made credits like loans against property easily available.
Following is a breakdown of the steps to avail such an advance and facilitate the purchase of these properties.
Things To Know To Avail The Advance –
Before applying for a mortgage loan to purchase a commercial property, individuals should satisfy a few eligibility criteria and submit the required documents.
Following are the requisite criteria and documents put forth by financial institutions for this advance –
Eligibility criteria
To avail the credits, individuals have to satisfy certain criteria like age, nationality, and income, as set by their lenders. For instance, most financial institutions offer such loans to Indian residents employed with MNCs, the public or private sector. Self-employed individuals can also avail of the loan, provided that they have a steady source of income.
Documents required
To avail of the advance, you need to submit documents like identity proof, address proof, income proof, etc. Apart from these, you will also have to submit the official documents of the property to be mortgaged.
Estimate the value of the property to be mortgaged –
It is crucial for borrowers to have an estimate of the value of the property to be mortgaged because their loan amount available will depend on it. For instance, if you are availing of a commercial property loan, you will need to have an estimate of the value of your commercial property before applying for the advance.
You can apply online to your lender’s website for property loans to avail of funding and purchase a commercial property.
How To Apply For The Advance Online?
Lenders nowadays have made applying for loans extremely simple for borrowers by introducing online application facilities. To apply for this advance online, you only need to follow the steps mentioned below –
- Visit the lender’s website and go to the appropriate page for loan application.
- Check the eligibility criteria, fill in all required details and submit the necessary documents.
- After reviewing your application, and the papers for the property to be mortgaged, your lender will get in touch with you.
- Your loan will be approved in a short time (usually within 3 to 4 working days) and disbursed in under four days’ time.
Why Should You Apply For This Advance To Purchase A Commercial Property?
You can enjoy several benefits if you know how to use the loan against property. For instance –
- A high loan amount value –
You can avail a loan amount value of up to Rs. 3.5 Crore without any end-usage restrictions. You can utilize the amount availed to purchase a commercial property, and even cover other financial obligations like medical emergencies, travel expenses, higher education costs, etc.
- Attractive interest rates –
Since it is a secured loan, the property loan rates are lower compared to other advances. For instance, if you want to avail a commercial property loan, you will need to do so against your commercial property. That is why the interest rates offered for this advance is more affordable.
- Repayment tenor flexibility –
Lenders offer a flexible tenor for this advance. Some financial institutions like Bajaj Finserv offer a tenor ranging between 2 and 20 years which can make repayment convenient for individuals. It is crucial for you to know how to determine the ideal tenor for your loan against property to maximize the benefits from it.
Additionally, Bajaj Finserv also provides pre-approved offers that can make availing the loan faster and easier. This offer is available on several financial products, including home loans, business loans, personal loans, etc. You can check your pre-approved offer by providing your name and phone number.
That is why with several benefits, mortgage loan is extremely beneficial if you want to utilize them to purchase a property. However, before availing it, check the loan to value of the advance to make sure that it is sufficient to purchase the respective property.