Want to purchase a commercial property? Searching for a loan for commercial property? Fortunately, there are now several lenders in India that offers such loans. But with so many options, how will you select one? Use the tips mentioned in this post.
With the increasing demand for loans in India, the lenders here have now started offering many different types of loans for specific purposes. For instance, if you want to buy a commercial property, now you can easily find lenders that offer loans specifically for buying such properties.
But with so many options to choose from, the selection can be difficult and frustrating. And with the amount of money involved, it is very important to make sure that you take a wise decision. Use the tips mentioned below to make things a little easier.
- Have all the Required Documents
Before you start searching for a loan for commercial property, make sure that you first have all the documents at hand. The lender will require you to submit your recent tax returns, financials, lease copies, bank statement, asset and liability statement, sale contract, etc. Make sure that all these documents are in order and up to date. With all the correct documents, it will be much easier for you to get the best deal on the commercial property loan.
- Have a Good Strategy in Place
No matter if you are buying a commercial property to conduct your business activities or as an investment, you’ll be required to have a proper strategy in place to get the loan approved. Present a clear strategy and remember it throughout the time you discuss your loan with a lender.
- Talk to At Least 3-4 Lenders
Commercial property loans are not as simple home loans. Thus, it is very important to thoroughly go through the terms and conditions of at least 3-4 lenders before making a decision. With the internet, things are much easier now as you can easily find the terms and conditions of lenders online. Be very careful when selecting a lender, especially if a deal sounds too good to be true.
- Prepayment and Foreclosure Facility
The lender should also allow you to prepay and foreclose the loan if you want to. There are usually charges associated with prepayment and foreclosure. So, make sure that you check these charges of different lenders before picking one. Also, the repayment schedule should be flexible and should not put a lot of unnecessary financial stress on you.
- Other Charges
The lenders charge a processing fee to process your loan. This fee is usually deducted from your loan amount and is different for different lenders. Apart from this, there are other charges like a penalty on defaulting EMI, cheque bounce, etc. which should be checked before selecting a lender.
A loan is an ideal way to finance your commercial goals. And with the help of the tips mentioned above, you are sure to make the right decision.