Business Loan

Complete Guide On How To Apply For Loan Against Commercial Shop In India


India is the world’s second-fastest-growing economy. The demand for commercial property has risen quickly during the past few years. But owning commercial property is a difficult task for the majority of businesses.

Commercial property is more expensive and highly valued than residential property. Whether it is an office, retail store, or warehouse, all units need space to start or expand their businesses.

You can use a Loan against property to fund all such expenses. Read on to learn about a loan against a commercial shop in detail and how you can avail of one.

What is a Loan Against Property (Commercial Shop)?

A loan against property is a line of credit that banks and financial institutions offer. These loans need collateral like non-residential or commercial property. A loan against a commercial shop is a secured loan against a commercial shop. Most banks prefer lending loans against property that is ready to occupy rather than which is under construction. But, it varies from lender to lender.

What is the Use of a Loan Against a Commercial Shop?

You can use a loan against a commercial shop to

  • Renovate your shop.
  • Rent new office space.
  • Expand your existing store.
  • Restock inventory.

Benefits of Getting a Loan Against Property

The following are the benefits of getting a property loan:

  • Loans against a commercial shop that is both under construction and ready to occupy.
  • A balance transfer option is available to reduce interest rates and EMIs.
  • Avail a loan for more than 60% of the collateral’s cost.
  • A loan with attractive interest rates.
  • Simple and little documentation
  • Up to 15 years of the flexible repayment period.

Eligibility for a Loan against Property

A loan against property or property loan is available to all Indians. The condition is they must own residential or commercial property. The eligibility for getting a loan against a commercial shop is

  • The business must be two years old.
  • Should be profitable in those two years.
  • A CA must audit the finances of a firm.
  • Should have a good CIBIL score above 700.
  • Should have good income generation and loan repayment capacity.

Documents Required for a Loan Against Property

The following documents are required to get a loan against property in India

  • KYC documents for identity proof. Identity proof such as an Aadhar card, PAN card, Driving Licence, or Passport.
  • Bank statement for the last six months and salary slips.
  • Audited financial results of the property.
  • Income tax returns for the past two years.
  • Documents related to property offered as collateral against the loan.

3 Simple Steps to Apply For a Loan Against Property

Apply for a loan against a commercial shop hassle-free through the following steps:

  1. Fill out the basic application form.
  2. Enter personal as well as property details.
  3. Whether you are a salaried or self-employed individual, share income details.

A bank agent or a relationship manager will contact you. And walk you through the further loan application procedure.

Key Features of Loan Against Property From Piramal Finance

The following reasons best explain why you should apply with Piramal Finance for a loan against property

  1. Loan available for different properties and collateral. Property loans are available for various properties and collaterals. Properties such as residential, commercial, and industrial.
  2. Quick sanctions and easy procedures. You manage your business, and we handle the paperwork.
  3. The Higher eligibility, the more the loan amount. Thanks to our thorough evaluation, we can offer you the biggest property loan for your highest eligibility.
  4. Huge Funds with easy repayment terms: You can get a loan up to Rs. 3 crores based on the value of our property. Plus, affordable interest rates and simple repayment terms.

Eligibility Criteria

Salaried Individual

  1. Age
    • Minimum Age: 21 years.
    • Maximum Age: Govt employee – 70 years (if pension considered). Non-govt employee- 62 years (or restricted to retirement age).
  2. Employment Type:Working in:
    • Govt. institution.
    • Public Sector Undertaking.
    • Private Sector Companies.
    • MNC.
    • Partnership firm / LLP.
    • Proprietorship concern (Individual / HUF).
    • Institutions run by Trust / NGO / Society/ others.


  1. Age.
    • Minimum Age- 23 years.
    • Maximum Age- 70 years.
  2. Employment Type.Self-Employed Professionals.
    • Architect.CA.Qualified doctors (MBBS/MD/MS).
    Self-Employed Non-Professionals.
    • Proprietorships.
    • Business owners.
    • Partners in partnership firms.
    • Promoters and directors of closely held private and public limited corporations.

Documents Required For both Salaried and Self-Employed

  • Income Tax Returns for the most recent two years.
  • KYC Documents.
  • Identity Proof such as an Aadhar card, PAN card, etc.
  • Address Proof.
  • Form 16.
  • Income Proof including the last six months’ bank statement and salary slips.
  • Documents relating to the asset pledged as collateral.

Property Loan Interest Rates, Fees, and Charges

Interest Rates
For both salaried and self-employed, Interest Rates start from 11.5%* p.a.
Fees and other charges that may apply at the time of application or during the loan term are listed here. These are subject to changes from time to time.


Property loans or loans against property are easy to get but with a good credit score. Many banks offer a loan against a commercial shop that is ready to occupy or is under construction. The interest rates and repayment terms vary from lender to lender. To get a hassle-free loan, apply online at Piramal Finance.