Commercial Loan
A Commercial Loan is a financial product designed to meet the
funding requirements of individuals, businesses, and organizations
for working capital, asset acquisition, and other business-related
purposes.
Eligibility for Commercial Loan
To qualify for a commercial loan, applicants must meet the following
criteria:
Salaried Individuals:
- Minimum net salary of ₹25,000 per month.
Professionals and Self-Employed Individuals:
-
Gross cash accruals of ₹1,50,000 per annum for at least 3
consecutive years.
Businesses:
-
Proprietorships, Partnerships, LLPs, Private Limited, and Limited
Companies with:
- Gross cash accruals of ₹1,50,000 per annum.
-
A minimum operational period of 3 years and cash profit for
the last 2 years.
Basis of Advance
A. Working Capital Requirements (ODAP)
Based on the MPBF (Maximum Permissible Bank Finance) method.
-
70% of the realizable value as per the bank’s approved valuer.
B. For Other Purposes Up to ₹500 Lakhs (TLAP)
For Salaried Individuals:
- 25 times the net salary.
- 70% of the realizable value as per the bank’s valuation.
-
80% of the agreement value for commercial property purchases.
For Non-Salaried Individuals:
-
5 times the gross cash accruals (average of the last 3 years or
the latest audited figure).
- 70% of the realizable value as per the bank’s valuation.
-
80% of the agreement value for commercial property purchases.
C. For Other Purposes Above ₹500 Lakhs (TLAP)
- Assessment based on DSCR (Debt Service Coverage Ratio).
Documentation for Commercial Loan
Applicants need to provide the following documents:
Financial Records:
- Audited financial statements for the last 3 years.
- Income tax returns with computation for the last 3 years.
- Bank account statements for the last 6 months.
Property Documentation:
- Documents for mortgage creation (as per bank requirements).
Self-Declaration:
- Verified self-declaration of assets and liabilities.
By ensuring these documents are in place, the loan application
process can be expedited.
