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AadhyaFinancialConsultancy > Commercial Property Purchase

SME Commercial Property Purchase Loan in Mumbai

Commercial Property Purchase Loan in Mumbai

Are you a Small or Medium-sized Enterprise (SME) looking to get a loan to invest in commercial property in “आमची Mumbai” for your business ventures? Look no further! Aadhya Financial Consultancy (AFC) is here to guide, support, and assist you through our Loan Advisory Service.  

Our approach is customized, flexible, and compassionate, ensuring that your business has access to the necessary funds to make wise real estate investments for expansion. Whether your needs are buying commercial property or space, investing in retail locations, investing for business expansion, or other commercial facilities, AFC’s best-in-class service guarantees quick and easy loans at a competitive interest rate with adjustable terms that work for your company.  

Don’t let opportunities slip away – invest in your business’s future now with AFC! 

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Why Select AFC for Commercial Property Purchase Loan?

  • Fitment Expert Guidance 

Benefit from AFC’s commercial property buying guide for small and medium-sized businesses directly from our experts. All this is done to maximize your loan eligibility. 

  • Competitive interest rates

Secure the best interest rates for financing your commercial property purchase needs. 

  • Comfortable Repayment Tenure 

Enjoy a repayment tenure tailored for your comfort, spanning up to 15 years. 

  • Specialized Balance Transfer and Top-Up Services 

Utilize specialized services for balance transfer and top-up options. 

  • Hassle-Free and Transparent Procedures 

Experience a seamless and transparent process from application to disbursal. 

  • Deadline-Oriented Approach 

Trust in our commitment to meeting deal deadlines with precision. Fulfilling SMEs’ dream of acquiring commercial real estate into reality.  

  • Post-Disbursal Support 

Receive ongoing support and guidance even after loan disbursal for a worry-free experience. 

Commercial Property Purchase Loan Eligibility Criteria

The loan eligibility criteria for small and medium-sized businesses for real estate acquisition are generally assessed by banks or NBFCs based on the following parameters: 

Repayment capacity for SMEs can be measured in various ways, including: 

Traditional

The conventional way of determining an applicant’s loan repayment capacity is based on formal financial documentation and direct evidence of income. This method relies on standardized criteria and a thorough documentation process to assess the creditworthiness of an SME. Here’s what it typically involves: 

  • Income Proof. 
  • Business stability. 
  • Age. 
  • Bank Statement. 
  • Debt to Income Ratio. 
  • Repayment History. 
  • Collateral. 
  • Qualification of borrower. 

Non–Traditional Methods 

The Non–Traditional or surrogate method in the context of SME loans is an alternative assessment approach used by Banks and NBFCs when traditional proof of income is insufficient to fully capture the borrower’s true financial status.  

The assessment is done based on any of the below parameters. 

  • Average bank balance. 
  • Gross Turnover. 
  • GST Returns. 
  • Asset-based lending. 
  • Liquid Investment Based lending. 
  • Repayment track record. 
  • Average EBITA. 

Maintaining a positive repayment history, marked by on-time payments and the responsible handling of various credit types, can enhance chances of being approved for a loan, significantly. 

Here’s what it typically includes: 

  • Timely loan repayments 
  • Timely credit card repayments 
  • Utilisation of other credit facilities 
  • Frequency of late payments 
  • Duration of credit history 
  • History of defaults 

‘Only Commercial Collateral’ can be used to finance the loan for commercial property purchase. 

Loan to Value (LTV) ratio for SMES loans is determined basis: 

  • Commercial Property: Loan is sanctioned up to 80% of market value of commercial property.

Loan can be availed for a minimum tenure of 1 year and a maximum tenure of 15 years.

Note: The age at the time of termination of the loan should not be more than 70 years. 

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Documents Required for Commercial Property Purchase Loan

a. Three years Financials complete set including: 

  • ITR acknowledgement (Saral Copy). 
  • Computation of income. 
  • Profit and Loss account and balance sheet will all annexure and schedules. 
  • Tax audit report, including Form 3CA and 3CD. 
  • Auditor’s report. 
  • Form 26 AS 

b. 12 Months bank statement Current account and saving account in PDF format (download as PDF from Internet banking). 

c. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

d. Sanction letter of all loans and facilities. 

e. GST registration certificate. 

f. GST 3B for the last 12 months. 

g. Copy of PAN Card. 

h. Residence Proof (one of the following): 

  • Aadhar Card  
  • Driving License 
  • Passport 
  • Voter ID card
  1. Three years complete financials set including: 
    • ITR acknowledgement (Saral Copy). 
    • Computation of Income. 
    • Form 26 AS 

     

  2. 12-month bank statement for both Current and Saving accounts in PDF format (download as PDF from Internet banking). 
  3. Proof of other income if other income is to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 
  4. Sanction letter of all loans and Facilities. 
  5. Copy of PAN Card. 
  6. Residence Proof (one of the following):  
    a. Aadhar Card  
    b. Driving License 
    c. Passport 
    d. Voter ID card 

Additional Documents for Partnership Firm:  

  1. Three years complete financial set, including:  

    ITR acknowledgement (Saral Copy). 

    o Computation of Income. 

    o Profit and Loss account and balance sheet with all annexure and schedules. 

    o Tax audit report, including Form 3CA and 3CD. 

    o Auditor’s report. 

    o Form 26 AS

  2. 12 Months bank statements Current account and OD or CC account in PDF format (download as PDF from internet banking). 

  3. Proof of other income if other income to be considered for enhancing loan eligibility (Rent agreement and reflection in bank statement). 

  4. Sanction letter of all existing loans and Facilities. 

  5. GST Registration certificate of the partnership firm. 

  6. GST 3B for the last 12 months of the partnership firm. 

  7. Copy of PAN Card of partnership firm. 

  8. Partnership Deed.

  1. Three years complete financial set, including: 
    • ITR acknowledgement (Saral Copy) 
    • Computation of Income 
    • Form 26AS 
  2. Six months’ Salary slip/Salary certificate. 
  3. 12 months bank statement for the savings account in PDF format, downloaded from Internet banking. 
  4. Proof of other income (if applicable) to enhance loan eligibility, including:
           a. Rent agreement and corresponding entries in bank statements. 
  5. Sanction letters of all existing loans and facilities.
  6. Copy of PAN Card. 
  7. Residence Proof – Aadhar Card/ Driving License/ Passport/ Voter ID card. 

Additional Documentation for Private Limited Company:

  1. Three years complete financials set, including: 
    • ITR acknowledgement (Saral Copy) 
    • Computation of Income 
    • Profit and Loss Account and Balance Sheet with all annexure and schedules. 
    • Tax Audit Report, including Form 3CA and 3CD. 
    • Auditor’s Report. 
    • Form 26AS. 
  2. 12 months bank statement for the savings account in PDF format (downloaded from internet banking). 
  3. Proof of other income (if applicable) to enhance loan eligibility, including: 
    a. Rent agreement and corresponding entries in bank statements. 
  4. Latest sanction letter of all existing loans and facilities. 
  5. GST registration certificate of the private limited company. 
  6. GST 3B for the last 12 months of the private limited
  7. Copy of PAN Card of the private limited company. 
  8. Memorandum and Articles of Association

Income to be considered:

Documents as per Salaried or Individual-Proprietor/Individual–Partner/Individual-Director. 

Income is not to be considered. 

Certain documents are required for identity verification purposes only and are not considered for income assessment:

  • Copy of PAN card. 
  • Residence Proof – Aadhar Card/ Driving License/ Passport/ Voter ID card.
  1. Registered agreement for sale between the seller and buyer. 
  2. Registered agreement for sale between the previous sellers and buyers. (all chain agreements starting from the first purchase until the last). 
  3. Copy of occupation certificate issued by the appropriate authority. 
  4. Copy of approved plan for building. 
  5. Copy of share certificate issued by society. 
  6. Copy of society registration certificate. 
  7. Copy of latest maintenance bill. 
  8. Copy of latest property tax bill. 
  9. Copy of latest electricity bill. 
  10. NOC for mortgage from the society, as per bank format 

Commercial Property Purchase Loan Sanction Process

commercial property purchase loan

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FAQs About SME Loans for Commercial Property Purchase

  • Loan purchase of commercial property is a secured loan borrowed purchase of commercial property.

  • Individuals who are self-employed or salaried. Established businesses like the follows can borrow loans for the purchase of commercial property: Partnership firm, Limited Liability Partnership (LLP), Private Limited Company, Limited Company,

  • The interest rates for commercial property purchase loans typically range between 9.00% to 12.00%. However, these rates are subject to variation based on factors including the lender's terms, borrower's profile, and creditworthiness.

  • Yes, acquiring a commercial property purchase loan generally involves nominal upfront expenses, depending upon the lending institution or banks. These costs may include application fees, as well as legal and valuation fees.

  • The financing available through a commercial property purchase loan usually spans from 65% to 80% of the property's agreement value. However, this percentage may fluctuate based on the lender's policies and the specific attributes of both the property and the borrower.