What are the interest rates available for Commercial Property Purchase Loan?

Interest rates on commercial property purchase loans vary between banks and Non-banking Financial Companies (NBFCs), depending on your profile, loan amount, tenure, and Loan-to-Value (LTV) ratio. Generally, rates may range between 8.50% and 15%. Processing fees are also payable upfront, usually between 0.5% to 5% (or more) of the total loan amount sanctioned.

During the loan tenure, you may incur additional charges like transaction handling fees for fund transfers, minimal convenience fees for services availed, higher penal interest rates levied on delayed payments, as well as nominal prepayment penalties for foreclosing the loan before the full tenure.

Part-prepayments during the loan term usually do not attract charges, but it will depend on the loan provider. Upfront costs deducted at the time of loan disbursement may include applicable stamp duty, which varies across states.

The loan provider may also apply other charges, such as technical and legal appraisal fees, property valuation charges, and inspection costs, according to the case specifics. When considering a commercial property purchase loan, it’s important to compare offers from both banks and NBFCs to find the best interest rates and terms that suit your financial situation. It is advisable that you carefully assess the aggregate costs and fees to identify the most competitive loan offers.