Apply for a Loan Against Commercial Property for Your Business

Running a business is easier said than done. All types of businesses need funds to operate and if there are not enough funds, it could land in trouble. As a business owner, you aspire to take the business to new heights and only a reliable lender can help you get access to funds. You can apply for a loan against commercial property and achieve business goals. Also known as a secured loan, the loan requires you to hypothecate an asset to get access to funds. You can choose any asset of your choice and it can be in use, idle or rented out. All you need to do is hypothecate the same until you make the loan repayment.

A huge advantage of the loan is that you can use the funds for any purpose in the business. There are no restrictions with regard to the end use of the funds. Additionally, the loan amount is high because of the low risk. You will get a loan amount of about 60% to 70% of the value of the property. If you hypothecate a high value property, the loan amount will be equally high. Once you approach the lender for a loan, they will ask a market valuer to estimate the value of the property and the loan amount will depend on the same.

Different lenders have varying eligibility criteria you need to be aware of. You can compare the same online before you proceed with the loan application. The process of application is simple and hassle free. You simply need to fill up the application form and submit documents of identity proof, address proof, KYC of the partners, business registration proof, ITR, bank statements, and documents of hypothecation of the property. If you have a good credit score, the loan application will be processed and approved in no time.

One thing you need to be aware of is the repayment terms and conditions. Understand them thoroughly before you sign on the dotted line. You need to ensure that the repayment is made on time. If you default in the same, the property will transfer to the lender who can auction it to recover outstanding dues. Hence, prepare a repayment schedule to ensure timely payment of the dues. You can use the EMI calculator to get an insight into the EMI amount. The calculator is available for free online and is easy to use. You only need to provide the loan amount and tenure to get a quick estimate. You can change the inputs until you reach an optimal output.

Apply for loan against commercial property and get funds for your business. The loan is a preferred choice of many business owners in the country and has helped them scale new heights. Irrespective of the type of business you own or the industry you operate in, this loan option is an ideal choice for you. With low interest rate and flexible repayment tenure, the loan will help you in many ways.

Loan Against Commercial Property for Your Business

Hero FinCorp is a diversified financial services provider in India. We are an associate company of Hero MotoCorp Ltd.