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Raise working funds against a shop, office or godown, with rental income counted towards your eligibility.
Commercial property is a working asset, and a loan against it is usually taken for a working purpose: expanding the business, funding a large order, or replacing costly short-term debt.
Lenders fund a lower share of commercial property, typically 50% to 60% against 60% to 70% for residential, because commercial real estate is harder to sell if things go wrong. The rate is a little higher and the tenure a little shorter for the same reason.
If the property is let out, most lenders count 70% to 80% of the documented rent towards your repayment capacity. A registered lease with a reputable tenant can materially increase what you are able to borrow. Some lenders offer a dedicated lease rental discounting product where the rent itself services the EMI.
Clear title, approved commercial use, and that the property is not in a purely residential zone. Shops in an approved market or an authorised commercial complex fund easily. A shop constructed on residential land often does not.
We look at your property papers before the file goes in and flag anything that will stall it. We also match you to lenders comfortable with your specific property type, because appetite for shops, godowns and industrial sheds varies widely between lenders.
70% to 80% of documented rent from the property can be added to your income, which raises the amount you can borrow.
Funding is available on retail shops, office units, warehouses and industrial sheds with approved commercial use.
Take it as a dropline OD so you pay interest only on what you draw. This suits a business with a seasonal cash cycle.
Where the loan is used for business purposes, the interest is generally deductible against business income. Confirm the treatment with your CA.
| Property type | Shop, office, showroom, godown or industrial unit with approved commercial use |
|---|---|
| Ownership | Owned in your name or in the name of the firm, with clear title |
| Business vintage | At least 3 years, with filed ITRs |
| Funding | 50% to 60% of the lender's valuation |
| Tenancy | Registered lease agreement if the property is rented out |
These are typical criteria. Individual lenders vary, and we will tell you which ones are flexible on your particular case.
You do not need any of these to enquire. We only ask for documents once we know which lender we are approaching.
Pre-filled with this product's own rate band and limits.
Pre-filled with the indicative rate band for Loan Against Commercial Property. Move the sliders to match your own case.
Twenty crore four lakh
10 yr 6 mo
Your monthly EMI
₹23,34,586
for 10 yr 6 mo
These numbers are indicative. Your actual offer depends on the lender. Most loans in India are floating rate, so the EMI can change when the RBI moves rates.
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