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unikadmin
- July 2, 2025
If you’re looking to buy or build a property for business use, like a shop, office or clinic you may need a commercial property loan. These loans can help entrepreneurs and companies to expand by providing funding for real estate that’s meant for commercial purposes.
In this blog, we will explain what a commercial property loan is, who can apply, what documents are needed, and how the process works.
What Is a Commercial Property Loan?
A commercial property loan is a loan taken to purchase, construct, or renovate property used for business activities. Unlike home loans (which are meant for personal residence), commercial property loans are specifically for spaces that generate income or support business operations.
Examples include:
- Shops and retail outlets.
- Office spaces.
- Warehouses or storage units.
- Clinics, studios, or showrooms.
These loans are usually taken by self employed individuals, business owners, professionals, or companies looking to invest in commercial real estate.
Who Can Apply.
You can be eligible for a commercial property loan if you come under one of the following categories:
- Self employed professionals such as Business owners running sole. proprietorships, partnerships or private limited companies.
- Firms and organizations registered under Indian law, including LLPs.
- High earning persons who can show a steady income and repayment capacity.
Before the loan is approved, the lenders evaluate your financial history and earning potential and stability, credit ratings and legality of the property.
Eligibility Criteria.
Each bank or loan providers has their own criteria, but the basic requirements typically include same.
- Age: Between 25 and 65 years.
- Business stability: At least 2–3 years of continuous business operation.
- Credit score: Preferably 650 or above.
- Minimum income: ₹10–₹20 lakh annual turnover.
Clear property documents: Legal title, approved building plan, and Free of legal issues.
Documents You’ll Need
To proceed a commercial property loan, you will need to submit a mix of personal, business and property related documents
- Personal KYC PAN card, Aadhaar card, passport.
- Address proof Utility bills, passport or rental agreement.
- Bank statements Generally from the last 6 to 12 months.
Income proof:
- ITRs for the last 2–3 years
- Profit and loss accounts and balance sheets.
- Profit and loss accounts and balance sheets. Business document: GST, company PAN, partnership deed or incorporation certificate.
Property documents:
- Title deed.
- Sale agreement.
- Sale agreement.
- Approved building plan.
Loan Amount and Loan Tenure.
The amount you can borrow depends on your income, your property value and business profile Here what to expect.
- Loan amounts typically range from ₹10 lakh up to ₹10 crore or more.
- Typically, commercial property loans come with repayment periods ranging from 10 to 15 years.
- Repayment through EMIs, with the option of fixed or floating interest rates.
Loan providers also consider your ability to repay based on your net income and other existing liabilities.
Step by Step Loan Process.
Here is how the commercial property loan process generally works.
- Application: Submit a basic form online or at a branch. Some lenders offer doorstep services.
- Document Collection: Submit all the necessary documents mentioned above.
- Verification: The loan provider checks your credit score, income details, business background, and property information.
- Sanction Letter: If approved, you’ll receive a formal offer with the loan amount, interest rate, EMI and tenure.
- Loan Agreement: After acceptance, you sign the agreement and give post-dated cheques.
- Loan Credit: The money is lent out most of the time directly to the seller or builder.
The whole process can take 1 to 3 weeks, depending on how quickly your documents are verified.
Conclusion.
A Commercial property loans are a good way to invest in your business’s future. if you’re setting up a new office or buying a retail space, these loans offer a long term financing with structured repayment.
Compare offers, verify your eligibility and make sure your documents are ready before you apply. A well-prepared application increases your chances of fast approval and better terms.
If you need expert help with commercial loans or loan against property, contact Unik Finance, your trusted finance partner in Chennai. we are ready to guide you through a every step.