The purpose is to Purchase a Resale, Under Construction or a Ready Built Commercial Property such as an Office or any other Non residential Premises
Minimum Contribution required from a customer towards the total cost of the property (inclusive of stamp duty and registration charges in case of purchase of property) is called Own Contribution. It ranges from 30-40 %
A processing fee of up to 1-2 % of the loan amount plus tax is applicable.
Your income and repayment capacity and your Property Type and Its Market Value (as per Lender) are major deciding factors for determining Commercial Purchase loan eligibility.
EMI is referred to â€œEquated Monthly Instalmentâ€� which is the amount to be paid monthly on specific date until the loan is fully paid. The two major components of EMI are the principal and interest which is designed in a way that during the initial years the interest component is higher than the principal component but down the line in later years the principal component becomes higher than the interest component
The estimated amount that is expected to be quoted for the property according to the prevailing market conditions is how the market value is ascertained. It is ascertained by a third party valuer empanelled with the respective bank.
The entire Interest Paid Component can be claimed as Business Expense to avail Tax Benefit.
Various Lenders offer numerous modes of repayment of loans you can opt from. You can ask for ECS (Electronic Clearing System) or opt for direct deduction of monthly instalment from your salary account as per your convenience. However, it must be noted that the delayed payments would lead to penalty and also you may be subject to paying cheque bounce charges.