Service Details
WHAT ARE CASH CREDIT LOANS?
Cash credit loan allows businesses to borrow amounts from their bank account over and above their account balance, as many times as they want, up to the pre-specified borrowing limit. However, the interest is only charged on the amount borrowed and not on the entire borrowing (credit) limit. Also along with security Banks usually hypothecate Stock .This loan Usually are for a single financial year and banks may renew and increase the total fund according to the borrower’s previous year financial transactions which will help the customer’s financial flow to be constant and improving for foreseeable future.
Commercial Property loans are meant to purchase commercial properties much like Home loans are meant to purchase residential properties.
Whether it is buying space for your first office or for subsequent branches or simply to invest in commercial real estate for rental income, Commercial Property loans are the answer.
Like Home loans and other property based loans, the consumer borrows from a lender (typically a Bank, an NBFC or a housing finance company), to purchase a commercial property and offers the same property to the lender as security.
WHEN TO APPLY FOR A COMMERCIAL PROPERTY LOAN?
You may apply for a commercial property loan after you have decided which property you are acquiring, However, even if you haven’t made a decision on the property, you can still apply and your financier would be able to let you know what loan amount you are eligible for under their Commercial Property loan program.
Commercial Property Loans may be availed for:
- Purchasing a property within an under-construction commercial development.
- Purchasing a ready commercial property from its builder or its current owner.
- Purchasing a plot in a private development OR from a current owner Or a government development authority.
- Financing the construction of commercial building on a plot you already own
- Purchasing a Plot as well as financing the construction of your commercial property.
HOW IS MY ELIGIBILITY DETERMINED FOR A PROPERTY LOAN?
Your Property loan eligibility is determined after looking at the following:
- Current Income – Net income from all Sources
- Nature and continuity of employment or Business
- City of Employment/Business & Current obligations (Any existing EMI’s being paid , credit card outstanding & Credit limit available )
- Your Financial history & track record including CIBIL scores if available
- The lending bank or institution will also consider which property you are buying.
- In the event it is a property under construction by a developer, the credibility of the developer and past performance on their projects will also determine how much the lender is willing to lend against such a property.
- Most institutions lend up to 80% of the value of the property, provided the borrower can demonstrate the ability to pay the installment for such a loan.
- Having a Co-Applicant to your Loan against property
- In order to give the lender an accurate picture of your loan servicing capability as a family , you could choose to have one of your family members as a co-applicant to your loan. Any of the members of one’s immediate family may become co-applicants to a Loan Against property – this is however limited to Spouses, Parents & siblings.
