Introduction to Commercial Property Financing
Loanpao’s commercial property financing solutions in 2025 empower businesses to purchase, construct, or expand commercial properties such as offices, retail spaces, or warehouses. With competitive interest rates and flexible terms, Loanpao supports your business growth and real estate investments.
Key Features of Commercial Property Loans
Loanpao’s commercial property loans offer:
- Loan Amount: ₹10 lakh to ₹10 crore, based on property value and business financials.
- Repayment Tenure: 5 to 20 years, with flexible EMI options.
- Interest Rates: Starting at 9% p.a. for secured loans, 11% p.a. for select unsecured options.
- Collateral: Property or other assets typically required; limited collateral-free options.
- Quick Disbursal: Funds within 7–20 working days post-verification.
- Purpose Flexibility: Use for property purchase, construction, or expansion.
Types of Commercial Property Loans
Choose the right loan for your business needs:
| Loan Type | Purpose | Typical Loan Amount |
|---|---|---|
| Commercial Purchase Loan | Buy offices, shops, or commercial complexes | ₹50 lakh–₹5 crore |
| Construction Loan | Build new commercial properties | ₹1 crore–₹10 crore |
| Property Expansion Loan | Expand or renovate existing commercial spaces | ₹25 lakh–₹3 crore |
| Lease Rental Discounting | Leverage rental income for financing | ₹50 lakh–₹5 crore |
Eligibility Criteria
Qualify for a commercial property loan with:
- Business Age: Minimum 2 years of operations.
- Credit Score: CIBIL score of 650+ for secured loans; 700+ for unsecured options.
- Revenue: Minimum ₹1 crore annual turnover.
- Registration: Registered as proprietorship, partnership, LLP, or Pvt. Ltd. in India.
- Property Documents: Clear title and valuation for the commercial property.
Documents Required
Submit these for a smooth application:
- Identity Proof: Aadhaar, PAN, or passport of business owners/directors.
- Business Proof: GST registration, Udyam certificate, or incorporation documents.
- Financials: 6 months’ bank statements, ITR for 2 years, audited financials.
- Property Documents: Title deed, sale agreement, approved plans, and valuation report.
- Others: Recent photographs, loan application form.
Benefits of Choosing Loanpao
Why Loanpao for commercial property financing:
- Competitive Rates: Interest rates starting at 9% p.a. for secured loans.
- High Loan Amounts: Up to ₹10 crore for large-scale projects.
- Flexible Tenure: Repayments up to 20 years to suit cash flows.
- Fast Processing: Approvals in 7–20 days for timely project execution.
- Expert Support: Guidance on property documentation and loan structuring.
- Transparent Terms: No hidden fees or charges.
How to Apply for Commercial Property Loans
Steps to secure financing:
- Online Application: Fill out the form on Loanpao’s website.
- Document Submission: Upload business, financial, and property documents.
- Verification: Loanpao assesses financials, business stability, and property valuation.
- Disbursal: Funds credited within 7–20 days upon approval.
Apply at Loanpao Apply Now.
Secured vs. Unsecured Commercial Property Loans
Compare your options:
| Feature | Secured Loans | Unsecured Loans |
|---|---|---|
| Collateral | Required (property, assets) | Not required (limited availability) |
| Interest Rates | 9%–12% p.a. | 11%–15% p.a. |
| Loan Amount | Up to ₹10 crore | Up to ₹50 lakh |
| Risk | Asset seizure on default | No asset risk |
| Processing Time | 10–20 days | 7–15 days |
Tips for Successful Commercial Property Financing
Maximize your loan benefits:
- Property Valuation: Ensure accurate valuation to maximize loan amount.
- Clear Title: Verify property documents to avoid delays.
- Financial Planning: Align EMIs with rental income or business cash flows.
- Compare Lenders: Evaluate rates and terms for cost savings.
- Tax Benefits: Leverage deductions under Section 24 and 80C for interest and principal repayments.
Frequently Asked Questions
Commercial property financing from Loanpao provides loans to businesses for purchasing, constructing, or expanding commercial properties like offices or retail spaces.
Businesses with 2+ years of operations, ₹1 crore turnover, CIBIL score of 650+ (secured) or 700+ (unsecured), and clear property titles qualify.
Offices, retail shops, warehouses, commercial complexes, or industrial spaces can be financed, provided they have clear titles and approved plans.
Approvals take 7–20 working days, depending on document verification and property valuation.
Yes, prepayment is allowed with minimal or no charges after a 6–12 month lock-in period, depending on the lender’s terms.
A credit inquiry may cause a minor dip initially, but timely repayments can improve your CIBIL score over time.
Defaulting may lead to penalties, credit score damage, or property seizure (for secured loans). Loanpao offers restructuring options to avoid defaults.