Are you looking for funds to buy a house or expand your business? You can easily get a loan for these purposes if you have a commercial space of your own. A loan against commercial property or loan against commercial shop involves keeping your commercial space as a mortgage with your lender. It is a secured loan that fulfills your fund requirement for different needs like a medical emergency, children’s education, other personal expenses, etc. You can also transfer your existing loan against commercial property to another lender. Read on to learn more about the benefits of this type of loan.
Commercial property includes a shop, store, hotel, restaurant, pharmacy, office, etc. You can borrow a sufficient amount of loan against these types of properties to meet your financial requirements. It would help in a continuous supply of funds so that you do not have to postpone a specific activity due to lack of funds. The benefits of a loan against commercial shop are:
-
High-value loans
You can get a significant amount of loan starting from 1 lakh up to a few crores under this category. Check your eligibility to get competitive interest rates while borrowing.
-
Simple and minimal documentation
You require a minimum number of documents for an application like your ID, income proof, etc. The lender’s aim is to disburse the loan to you within a few days after you apply. They would not burden you with the submission of a range of documents that would be difficult for you to arrange within a short time.
-
Flexible loan
You can withdraw specific amounts as per your requirement from a pre-sanctioned amount. Pay interest only on the amount that you have withdrawn, which would be a comfortable option for you. You can also pay back only the interests in EMIs, depending on your lender’s terms.
-
Online transactions
Go for the online facilities and track your loan account at your convenience. This is one of the best features offered by lenders nowadays on loans.
-
Flexibility
This type of loan is highly flexible in terms of repayment. If you are a salaried individual, you have to repay it before your retirement. The lender may provide an extension if you have a guaranteed post-retirement income. In case you are self-employed, there is a maximum age limit, generally 60 or 70 years. You need to close the loan before you attain that age.
-
Relationship managers
Some lenders may provide a dedicated relationship manager to help you with your queries, loan disbursement, EMIs, etc.
-
Insurance covers
Your lender may require you to get a life insurance cover, particularly if you are taking a home loan. The premiums are affordable and the policy covers you during the entire loan duration. They may offer property insurance coverage to protect against accidents or damages. You can get funding for the insurance premiums also.
-
Loan transfer
You can transfer your balance loan to a different lender if you find lower interest rates, better repayment options, top-up loans, lesser charges, etc.
-
Online calculators
You will find online loans against commercial property calculators for EMIs and eligibility. You have to put in certain details and get information regarding the amount of loan you are eligible for, the monthly EMIs, etc. This would help to plan your finances in advance.
Get a loan against commercial shop as a quick and easy way to meet your fund requirements. You should own a commercial property that you can put up as collateral. This loan has various benefits, including a short processing time and minimal documentation. If you think that you are getting better alternatives, you can even switch over to a new lender. Calculate the EMI and go through the loan terms carefully as they may vary between different lenders.