What Is NRP Or Commercial Loan
WhatrnIs NRP Or Commercial Loan
Commercial loan means the loan takenrnto purchase a commercial property, premises, office, gala, factory, etc usedrnonly for commercial purposes. It is referred as Non Residential Premises i.e.rnNRP Loan in banking language/ terminology.
Who can apply for the commercialrnloan?
Any individual irrespective of beingrnSalaried or self- employed can apply for commercial loan. However some banksrnhave guidelines, where commercial loan given is restricted only tornself-employed people.
Type of commercial loan
A commercial property can bernpurchased in resale or directly from the builder which can either bernunder-construction or ready to move. Hence the commercial loan is either arnresale commercial loan or a builder transaction.
Tenure for commercial loan
A commercial loan is provided for arnmaximum tenure of 15 years and sometimes till 20 years.
Commercial loan Rate of interest
Banks offer commercial loan atrnslightly high rate of interest in comparison to home loan. Interest rates mayrnvary from bank to banks / NBFCs.
There is no difference in therninterest rates offered to salaried and self employed loanrnborrowers.
Charge for commercial loan
The borrower has to pay a chargerncalled Processing Fees (PF) to avail the commercial loan. PF charges arerndifferent for different banks, but in general banks charge 1% of the loanrnamount which is to be paid upfront by the borrower unlike in personal loanrnwhere the PF cost is adjusted within the loan amount.
Tax benefits for commercial loan
There are no tax benefits for thernborrower of commercial loan.
Commercial loan list of documents
For commercial loan list ofrndocuments for salaried and self -employed click www.loanfasttrack.com
Commercial loan closure charges
As per the RBI's guidelines therernare no charges for the pre-payment and part-payment of the commercial loanrnunless the borrower has taken the loan in fixed interest rates. The closurerncharges under fixed rates may vary depending on the banks and is charged @ 1% -rn2% of the loan amount.
Is commercial loan transferable?
Balance transfer of commercial loanrnis possible only
1) If the borrower has received the possessionrnof the commercial property. Builder under- construction property whosernpossession is not yet received cannot be transferred.
2) Subject to the income eligibilityrnof the borrower.
3) Subject to clear repayment trackrnrecords.
Top-Up on commercial loan
A borrowerrncan easily avail a top-up on commercial loan but subject to the incomerneligibility and LTV (Loan TO Value) i.e. market valuation of the property. Top-uprnrate is equivalent to the commercial loan rate and requires minimumrndocumentation to process.