Loan for residential property is known as home loan, which is very common. People can easily avail of such home loans by submitting minimum documents to the lenders. But, many do not have a clear idea about commercial property loans and only a few banks or private lenders can provide such commercial loans.
Here you can find some features of Commercial Property Loans:
You can buy new or existing commercial property such as clinics, office or an outlet by taking such loans. Apart from that, lenders can also approve your commercial property loans for an extension of your existing property. Even people can also apply for such loans for renovating their office or industrial buildings.
A legal advisor and technical counseling are generally provided by the lenders to avail such loans and you can take assistance from your advisors and brokers to select the best deal.
The process of availing commercial property loans is hassle-free and you need to submit minimum documentation to avail such loans. But, lenders will check your credit score, cash flow, years in business and other business-related documents before they approve your loan.
You can find short term and long term commercial property loans, and you can choose the tenure according to your needs. The repayment structures of such loans are quite flexible and your purchased property will be treated as collateral.
You can find numerous lenders online who offer commercial property loans so you can apply online for such loans. But make sure, you check their interest rates, foreclosing charges, application fees, and other hidden charges before you apply.
Eligibility for Commercial Property Loans:
Self-employed individuals and self-employed professionals can apply for the commercial property loan. But, they cannot purchase a residential property with this loan amount and they need to submit all required documents for their commercial property to the lenders. There are pre-approval facilities available and you can ask your bank for the same. In this case, you can submit the documents to the bank and apply for a property loan. The bank or lender will check your application and issue a pre-approval letter on your name. Then you can buy the property by this pre-approval letter and the respective bank or lender will transfer the amount to the seller.
Self-employed professionals including engineers, doctors, company secretaries, lawyers, architects, consultants, and chartered accounts can apply for the commercial property loans. Apart from that, self-employed individuals such as commission agents, traders, contractors, and business owners can apply for such loans. People can apply for the commercial property loans for buying an office space, outlet, business premises, and any other commercial property.
Different types of Commercial Property Loans available in the market:
Low doc commercial loans: if you do not have any valid income proof and you have a new business then you can apply for the low doc loans by submitting an accountant’s letter, BAS statements, and your account statements.
Lease doc loans. In the case of a lease doc commercial property loan, you do not need to submit your tax returns, pay-slips, and financial statements. Lenders can approve your loan on the basis of your rental income.
Bad credit loan. If you have a poor credit score then you can apply for such loans and you need to pay a higher rate of interest for the same.
Specialized commercial loan: this type of loan can be provided for some specialized commercial properties such as hospitals, pubs and aged care facilities.
Franchisee loan: for this loan, you need to mortgage your franchises to the lenders to buy a new property.
So now you can search such commercial property loans online and choose the best deal after comparing the rate of interest offered by different lenders.