Commercial Property Loan With ICICI Bank – By Loanfasttrack
|Commercial Property Loans @ lowest interest rates with ICICI Bank starting from 8% p.a. with extended loan tenure of up-to 20 years.|
Introduction: What is Commercial Loan?
A loan taken to purchase a commercial property – office premises, shop, factory, industrial unit, manufacturing unit, gala & commercial plot loan/ commercial land loan, loan for construction of commercial property, etc. used only for commercial purposes is referred to as Commercial Property Loan, also referred to as Non-Residential Premises i.e., NRP Loans.
Funding taken for the extension, improvement, repairs & renovations and construction of the commercial property is also covered under the head of NRP loans.
It is easier to find and apply for residential property loans i.e. home loans with Banks & NBFCs, but finding a Bank/NBFCs to fund your requirement for commercial real estate loans might not be that easier because of the limited know-how of the borrower and since the business property loan is provided by only limited Banks/NBFCs. But the most popular and the leading name in the mortgage industry -The ICICI Bank Ltd. has made it easier for the buyer of the commercial property to avail loan to fund their commercial property at an attractive low ICICI commercial property loan interest rates with maximum loan tenure for commercial property loan. The borrower can take a loan to buy a resale/ready to move or under construction commercial property/ office/ shop/ industrial unit either to be self-used or for investment purposes.
Features & Benefits of Commercial Property Loan ICICI Bank: –
- Provider for a lowest interest rate for commercial property loan.
- ICICI commercial property loan for purchase of commercial property -office premises, shops, loan for industrial property, for purchasing the ready to move or under-construction commercial property, loan for commercial land purchase and construction, etc. are available at competitive interest rates in the mortgage industry.
- ICICI Bank commercial property loaninterest rate starts from 8% p.a.
- Both salaried and self-employed/ self-employed professionals can apply for loan to buy commercial property with ICICI Bank.
- Lowest per lakh EMI starting from Rs.836/- onwards.
- Maximum funding up-to 70% of the cost of the property.
- Various range of commercial property loans including the loan against commercial property & lease rental discounting & balance transfer of commercial property loan.
- Faster loan processing.
- Simplified documentation.
- No hidden costs.
Commercial Property Loan Eligibility with ICICI Bank
* Both salaried and self-employed borrowers can apply for commercial loan with ICICI Bank.
* ICICI’s commercial loan is also available for NRI loan borrowers. NRIs can apply for commercial loan in India with ICICI Bank.
- Eligibility Criteria: Eligibility criteria for all eligible loan borrowers: –
* Age – minimum 21 years & maximum up-to 70 years.
* Minimum Income – Rs.25,000/- p.m. for salaried & net profit of Rs.2,50,000/- p.a. for self-employed.
* Co-Applicant – An earning Co-applicant/s (spouse, children- son or daughter, parents-father or mother & siblings -brother or sister) with minimum 18 years can be added to the loan application in order to increase the loan eligibility. A Co-applicant has to be in blood relation to an applicant.
- Minimum Sq. Ft. Area Requirement:
Minimum area required for the commercial property is 200 sq. ft.
- Geographical Location of the Property:
* The commercial property has to be within the approved corporation limits i.e., within the city limits.
* Grampanchayat property or plot is not considered for the loan.
- LTV (Loan To Value):
ICICI provides the maximum LTV under loan for commercial purchase which is up-to 70% of the market value of the property.
- Commercial Property Loan Rate Of Interest:
Uniform commercial property interest rates for all (salaried/self-employed/self-employed professionals/NRI) (including loan against commercial property interest rates) starting from 8% p.a.
Compare home loan interest rates of leading banks
- Commercial Property Loan Tenure:
Up-to 20 years is the commercial property loan maximum tenure with ICICI Bank.
- Processing Charges:
* Processing Fees: 1% of the loan amount plus applicable GST.
* Administration Charges: Rs.5,900/-.
(Click to know the complete loan charges applicable)
- Commercial Loan Takeover:
Commercial loan takeover is available for all eligible loan borrowers at lowest interest on commercial property loan starting from 8% p.a. with a good repayment history/ track record for 12 months.
Also Read: Loan transfer requirements, Benefits of loan transfer.
- Top Up Loan on Commercial Property Loan:
Existing loan borrowers can easily fulfil their personal & professional funding needs by applying for a top-up amount on commercial loan at attractive commercial property loan interest rates ICICI Bank (commercial shop loan interest rates, commercial building loan interest rates, commercial home loan interest rates commercial land loan interest rates). Pre-requisite to apply for top up loan – the loan must be at-least 3 months old & the borrower must have a satisfactory EMI repayment track record with no EMI bounce for the last 12 months.
Top up interest rate ranges from 8% p.a. – 8.50% p.a.
Know more on ICICI Bank home loan top up.
- Foreclosure Charges:
Up-to 4% on the outstanding commercial loan amount.
- CIBIL Score:
Minimum CIBIL score of required is 750 and above.
(Understand the significance of CIBIL in home loan & know how does an home loan inquiry impacts the CIBIL score.)
Additional Read: How To Apply For Home Loan With Bad CIBIL Score – By Loanfasttrack
- Tax Benefits: The tax rebate on commercial property loan is allowed in the year in which it accrues irrespective of the year in which it has been paid.
* Principal Repayment: No deduction is available under Section 80C for repayment of principal for commercial property loan.
* Interest Paid: The interest deduction is applicable for any loan amount whether borrowed from bank, private financer/ patpedi or friends or relatives.
=> The interest paid on loans taken for construction/ purchase/ repairs or reconstruction of the commercial property, can be claimed under section 24 of the Income Tax Act.
=> The processing fees and prepayment fee paid for commercial property loans is also treated as interest and can also be claimed under Section 24.
=> The borrower can claim tax on the whole interest amount paid. There is no limit for interest deduction on commercial property unless for the rent out commercial property which is up-to the net annual value i.e., the gross rent received p.a. Less municipal taxes paid on the property.
=> For under construction builder commercial property – no interest deduction available for loans taken for repairs/ renovations / reconstruction. However aggregate interest paid during the construction on the purchase/construction of the commercial property can be claimed in next 5 years on the completion of the construction.
(Read important loan facts before purchasing an under construction property.)
Commercial Real Estate Loan Documentation Checklist for ICICI Bank
- KYC: Pan Card, Aadhar Card, Latest Passport size photograph, Office proof & Residence Proof.
- Income Documents:
* For Salaried:
4 months Salary Slips, 6 months Bank Account Statement & 2 years Form 16
* For Self-Employed:
3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account – CA certified & 12 months bank account statements of all bank accounts (savings + current account)
- Property Documents:
Prior Chain of Agreement, OC/CC + approved plans, Index 2, Share Certificate, Society Registration Copy & Property Tax Receipt.
- Additional Documents for Commercial loan transfer:
LOD, Outstanding Balance Letter & 18 months repayment track record.
- Other Documents:
Duly signed ICICI Bank commercial loan application form & Processing fee cheque.
Click for detailed documents required for commercial property loan for salaried resale case, for salaried builder case, for self-employed proprietorship firm builder case / resale case, for self-employed partnership firm builder case / resale case, for self-employed private limited company builder case / resale case.
Apply for other loan products of ICICI Bank
|Home Loan||Mortgage Loan||Home Loan Balance Transfer||Mortgage Loan Balance Transfer||Top Up Loan||Mortgage Overdraft|
Commercial Property Loan Interest Rate Comparison Chart of 2020
|ICICI Bank||8% p.a.||Up-to 20 years|
|HDFC Ltd.||8.25% p.a. – 9.75% p.a.||Up-to 15 years|
|Canara Bank||12% p.a. onwards||Up-to 10 years|
|Axis Bank||10.50% p.a. onwards||Up-to 20 years|
|Bank Of India||10.50% p.a. onwards||Up-to 15 years|
|PNB Housing Finance Limited||9.50% p.a. – 11% p.a.||Up-to 15 years|
|Bajaj FinServ||10.10% p.a. – 14.50% p.a.||Up-to 20 years|
|IDBI Bank||10.25% p.a. onwards||Up-to 15 years|
|South Indian Bank||10.05% p.a. – 10.30% p.a.||Up-to 12 years|
|Kotak Mahindra Bank||9.60% onwards||Up-to 15 years|
Additional Read: Why interest rates with NBFCs are higher than rate of interest with Banks.
Commercial Property Loan Questionnaire:
Q. Is it mandatory to have an ICICI Bank account to apply for a commercial loan?
Ans:Yes. It is mandatory to have an account with ICICI Bank in order to service the commercial loan EMIs.
Q. What is the commercial property interest rate today?
Ans: ICICI Bank provides the best commercial property loan rates starting from 8% p.a. Onwards.
Q. What is the processing charge for ICICI bank loan for commercial property?
Ans: ICICI Bank commercial real estate financing processing fees applicable is 1% of the loan amount plus applicable GST.
Q. Is it mandatory to have a co-applicant to the loan application?
Ans: Yes. It is mandatory to have a co-applicant to the commercial real estate loan application with ICICI Bank.
Q. How much loan can I get on the property value of Rs.1 Crore?
Ans: Maximum loan funding provided by ICICI bank is 70% of the market value of the property and therefore maximum commercial property finance that can be availed on a commercial property worth Rs.1 Crore is Rs.70 Lakhs.
Use Loanfasttrack’s commercial property loan eligibility calculator to calculate your loan EMI.
Q. I am an NRI working in London & investing in a commercial property in India. Can I get a commercial loan?
Ans: Yes. ICICI Bank commercial home loan is also available for NRIs.
Q. Is there any limitation on the property sq. ft. area?
Ans: The minimum sq. ft. area required for commercial property is 200sq. ft.
Q. How to find a commercial mortgage broker near me?
Ans: Simply visit Loanfasttrack on www.loanfasttrack.com.
You may also email on firstname.lastname@example.org or call on 9321020476.
Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.
Loanfasttrack’s specialized services includes providing:
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