Loan for Purchase of Commercial Property
Target Group
Individuals, Professionals and Self-employed people, firms (registered partnership firms/companies) and businessmen for purchase of Office space and / or shops. The applicant should have been in the activity for a minimum period of 3 years
Purpose
* To purchase new commercial space/shops and also second hand purchase provided the residual life of the commercial space is not less than actual repayment period plus ten years
* Take over existing loan of standard asset category given for similar purpose, from other Banks/Financial Institutions.
* The applicant may acquire the property for running his own business activity and even for letting out to third party traders/entrepreneurs, provided rental income is routed through our loan account.
Age
Not more than 50 years of age at the time of availing the facility
Quantum of Loan
Individuals/professionals :
36 times of monthly gross income or 60 months net income whichever is higher
Self employed professionals : Gross income net of tax before deducting depreciation
Max Loan amount: Rs. 50 lakhs
* Income of co-borrower can be included in arriving at the quantum
* In case of firms/company, 5 times of the cash profit of immediately preceding financial year or four times of average cash profit for the last three years whichever is higher
Repayment Period :7 years (84 EMI)
Interest rate
Less than
36 months 10.50% floating
36 months & above 11.00% floating
* If the option is for Fixed rate, 0.50% over and above the applicable rate will be charged
Holiday Period
A maximum of 3 months for ready built commercial space and a maximum of 12 months from the date of first disbursement where property is under construction.
* Interest to be serviced during the holiday period
Prepayment Charges
2% of the drawing limit to be levied in case of take over by other Banks/Financial Institutions.
Processing Fee
0.50% of loan amount to be recovered alongwith charges for obtaining legal opinion and valuation report at the time of application
Margin
* Minimum 25% on the value of the property.
* For purchase of ready built commercial space, the borrower should bring in full margin amount prior to release of limits by the Bank
* Where construction is involved, it shall be on pro rata basis
Insurance
Property to be insured with Bank's clause at the borrower's cost
Security
* Equitable Mortgage of Commercial Property to be acquired
* Personal guarantee of a third party having Net Worth not less than the loan amount in case of individual borrowers.
* Personal guarantee of partners/directors in individual capacity
This information is brought to you by Harmony Infotech.
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