Who is eligible for a commercial property purchase loan?

The primary applicants eligible for a commercial property purchase loan include:

Residents and Non-Residents: Salaried residents or non-residents aged usually 21-65 can apply, subject to submitting income proof and establishing satisfactory repayment ability. The maximum age at loan maturity should typically not exceed 65 years or retirement age (whichever is earlier).

Note: Non-resident applicants may typically need to provide additional documentation to verify their income and financial status in their country of residence. They may also face different eligibility criteria compared to resident applicants.

Self-Employed Professionals: Doctors, engineers, chartered accountants, consultants etc. are eligible. They must provide financial statements to prove consistent professional income.

Collateral Security: The purchased commercial property will be mortgaged to the loan provider via an equitable mortgage. This establishes the loan provider’s first charge on the asset. The property should be used for eligible commercial activity like retail, office, industrial, hospitality etc.

Additional Requirements: Personal or corporate guarantors may be required to co-sign the loan, promising repayment. Banks and Non-Banking Financial Companies (NBFCs) may also typically require assignments of rent receivables, insurance policies etc., to improve security.