Loan for Purchase of Commercial Property
About The Loan:
- This is akin to Home Loan – instead, it provides the funds necessary to buy Office Buildings, Shops, Warehouses, Factories or any other property proposed to be used for business purpose.
- Loan available to individuals, companies or partnerships looking to expand their businesses or invest in income-generating properties.
- With flexible repayment options and competitive interest rates that are fixed or floating, this type of loan allows you to make significant investments without straining your cash flows.
- Lenders assess the value and profitability of these properties before disbursing the loan, the amount in respect of which range from 50 to 70% of the value.
- Buying commercial property adds a valuable asset to your portfolio. Over time, commercial properties tend to appreciate, providing long-term returns on investment. Further, if you’re buying a property for leasing purposes, rental income can help repay the loan and even generate surplus revenue.
- If the loan is taken for business purposes, tax deductions can be claimed on the interest component under Section 37(1) of the Income Tax Act, 1961.
- Prepayment and foreclosure options are available.
