SBI Commercial Property Loan
Securing funds for commercial property is a pivotal step for entrepreneurs and businesses to establish their footprint in an ever-growing landscape. Advertently, the State Bank of India facilitates these aspirations. With SBI’s commercial building loan, experience a robust offering as a business to capitalise on your real estate opportunities.
This scheme can be used for various purposes, including purchasing commercial space, investing in retail property, constructing a commercial building, expanding existing commercial property, etc. Read this guide to understand the key features, benefits, and considerations of SBI commercial property loans.
SBI Commercial Property Loan - Highlights
|Rate of Interest
|Starts at 8.40% p.a. (Sept 1, 2023)
|Maximum Loan Amount
|50 Crores - Metro/Urban areas; No Limit - Rural areas
|Flexible repayment to suit your needs
|Minimal documents required
|Usually, the commercial property itself acts as a collateral
SBI Commercial Property Loan - Features and Benefits
Below are the significant features of Commercial Loans from SBI:
- Competitive Interest rates
- Flexible repayment tenure
- Transparent fee structure
- Accessible to a wider range of customers
- Seamless application process
- Quick approval and disbursement
- Dedicated relationship managers
SBI Commercial Property Loan - Interest Rates
SBI commercial property loans aren't typically distinguished by loan size, but interest rates differ for loans below Rs.10 crore and above. In simple terms, the interest rates differ for amounts below and above Rs. 10 crore. Starting from 8.40% p.a. (as of September 1, 2023), the interest rates are competitive and flexible, with variations based on loan amount and tenure. In addition, the interest rate declines based on everyday reducing balance, making it a perfect choice for entrepreneurs and seasoned businesses for some commercial property investment.
SBI Commercial Property Loan - Eligibility Criteria
Take a look at the eligibility criteria of an SBI loan for the construction of the commercial building:
- Customers who already hold an account in SBI bank
- The borrower must be a business entity, such as a sole proprietorship, partnership, or limited liability company.
- Security or collateral in the form of market asset of that property
- Applicants are required to submit their credit reports
- The property being financed must be located in India.
- The loan-to-value (LTV) ratio for the property cannot exceed 75%.
SBI Commercial Property Loan - Documents Required
Explore the essential documents required to apply for an SBI Commercial Property loan:
|Business registration documents
|Verify business ownership and operations
|Assess financial health and loan repayment capacity
|Verify property ownership and value
|Income proof for salaried/self-employed
|Determine income stability and loan eligibility
SBI Commercial Property Loan Processing Fees and Other Charges
While SBI Commercial Property Loan offers transparent charges, it's crucial to understand the associated fees and charges before you commit. Here's a breakdown:
|Up to Rs. 50 lakhs: 0.50% of the loan amount Above Rs. 50 lakhs and up to Rs. 5 crores: 0.25% of the loan amount Above Rs. 5 crores: Negotiable
|A prepayment penalty ranges from 2% to 4% of the outstanding principal amount.
|Stamp duty and registration charges
|Applicable as per government regulations
|0.25% p.a. on the unutilised portion of the loan amount.
SBI Commercial Property Loan - Terms and Conditions
Remember, the SBI Commercial Property Loan comes with certain terms and conditions you need to be aware of:
- Loan-to-Value (LTV) Ratio: The maximum LTV for this loan is 75%. This means you must provide a minimum down payment of 25% of the property value.
- Repayment Period: The maximum repayment period for this loan is 10 years. However, the actual term may vary depending on the loan amount and purpose.
- Security: The commercial property being financed serves as the primary security for the loan. Additional security may be required in certain cases set by the bank.
- Moratorium Period: A moratorium period might be available for construction purposes, allowing you to pay only the interest during construction.
Quick Tip: Carefully review the loan agreement and understand all the terms and conditions before signing.
Need Loan Assistance?
Connect with Loan Advisor Now!
- Employee Provident Fund
- Systematic Investment Plan
- Fixed Deposit
- Mutual Funds
- Recurring Deposit
- Systematic Investment Plan (SIP)
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- Voluntary Provident Fund (VPF)
- National Pension Scheme (NPS)
- National Savings Certificate (NSC)
- Senior Citizen Saving Scheme