- 1 Home Loan
- 2 Mortgage loan
- 3 Business Loans
- 4 Commercial Loans
- 4.1 What a commercial loan?
- 4.2 Why you need a commercial loan?
- 4.3 Commercial Mortgage Advantages
Simply it means a loan under an agreement to borrow money in order to buy a property and the property being mortgaged to the lender until all the money has been repaid by the borrower to the Lender.
Home Loans Unique Advantages with us.
- Low Processing fees option with multiple banks.
- Package of exclusive benefits like nil processing fees………
- Lowest interest rates.
- Overdraft facilities / max gain facility / home saver facilities / home credit facility/ with few banks
- Interest charge on daily reducing balance options
- Maximum funding on total cost of the property.
Documents required for Home Loan
Generally, the documents required to process your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:
1.Document list for Salaried customer for in principal sanction
- ID ( PAN Card and Company ID) and current address proof.
- Income documents ( Latest 3 month salary slip, Company Offer and appointment letter, 2 year form 16 Part A&B;, Previous Origination / Company experience letter)
- Latest completed 6 months’ salary bank A/c statement All existing loans sanction letter and loan statement from beginning to till date.
2.Document list for Self employed / Business for in principal sanction.
- ID ( PAN Card ) and address proof of resident and office.
- Income Documents ( Latest 2 year ITR with true copy from Chartered Accounted ) Shop act licence, Company profile .
- All bank statements ( Saving and current A/c from 1 April 2015 to till date.) Latest completed 6 months’ salary bank A/c statement, All existing loans sanction letter and loan statement from beginning to till date.
Why you need a mortgage loan?
A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full. Mortgage loans are usually entered into by home buyers without enough cash on hand to purchase the home. They are also used to borrow cash from a bank for other projects using their house as collateral.
There are several types of mortgage loans and buyers should assess what is best for their own situation before entering into one. Types of loans are characterized by their term dates (usually from 5 to 30 years, some institutions now offer loans up to 50 year terms), interest rates (these may be fixed or variable), and the amount of payments per period. [If you’re ready to buy a home, use our Mortgage Calculator to see what your monthly principal and interest payment will be.] Mortgages are like any other financial product in that their supply and demand will change dependent on the market. For that reason, sometimes banks can offer very low interest rates and sometimes only they can only offer high rates.
Mortgage Rates Help
Getting a mortgage loan is a big commitment. Learn about all the variables involved in getting a mortgage and the impact these variables have on your interest rate. Before buying your new home, you can find the most common variables that go into calculating estimated monthly payments and interest rates provided here.
Click “Purchase” if you are buying a home. Click “Refinance” if you own a home and you want to replace your mortgage with another loan at a different rate and terms.
Select which type of mortgage you are shopping for: a 30-year fixed-rate loan, a 15-year fixed, an FHA-insured loan, an adjustable-rate mortgage (ARM) with an introductory rate lasting 5 or 7 years, a 20-year fixed, and 10-year fixed or a 30-year Veterans Affairs loan.
Type the amount you want to borrow. The default is $165,000, but you should enter your own number.
Select the percentage that is closest to your down payment. If your down payment is between these numbers, select the lower one. Example: If you are making a 12 percent down payment, select “10% down” and not “15% down.”
If you know your credit score, select the range that your score belongs to. The best rates and terms go to borrowers with credit scores of 740 and higher, and borrowers in the 720 to 739 range can get very good deals, too.
Select the range of discount points that you are willing to pay. Discount points are an upfront fee that you pay to get a lower interest rate. One point is 1 percent of the loan amount. On a $100,000 mortgage, if you pay 1 point, you pay an upfront fee of $1,000.
Write your city and state. You might see a bigger selection if you choose the nearest large city.
What are business loans?
A business loan is similar to a personal loan, but is specifically designed for business use. With a business loan, you are lent a certain sum of money over a period of years, and the interest rate and monthly payments are fixed over the term. Some business loan providers offer access to short-term finance and may, for example, offer sums of up to £30,000 for up to a year. Others will allow you to borrow larger sums over a longer period. In addition, some providers specialise in small business loans, while others focus on start-up business loans for new businesses.
Why you need a business loan?
A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest. There are a number of different types of business loan, suited to the requirements of different types of business such as bank loans,mezzanine financing, asset-based financing and invoice financing.
Businesses require an adequate amount of capital to fund startup expenses or pay for expansions. As such, companies take out business loans to gain the financial assistance they need. A business loan is debt that the company is obligated to repay according to the loan’s terms and conditions. According to the U.S. Small Business Administration, before approaching a lender for a loan, it is imperative for the business owners to understand how loans work and what the lender will want to see from the owner.
Types of SBI Business Loan:
You can avail any of the two business loan types from SBI according to your requirement:
Secured Business Loan: In this business loan, the corporate of the business firm would have to submit some valuable asset as security to the lender.The asset can be any finsihed products, machinery or any property can be put as security while availing loan.
Unsecured Business Loan: In this business loan, the corporate of the business firm do not need to pledge any property to the lender as security.These unsecured loans are available at high Business Loan interest rates.
What is Project Loan
Loan arrangement in which the repayment is derived primarily from the project’s cash flow on completion, and where the project’s assets, rights, and interests are held as collateral.
Project Loan : Overview
Project Loan is given by the lending institution or banks to the borrower for the purpose of business expansion, reconstruction etc. Project loan is also available to acquire the fixed assets like land & building, plant & machinery etc. Project Loans are available to the existing business or industrial houses for growth purpose and equally available to the new business entrants in form of seed or startup capital. Projects loans are generally mid or long term period loans but lending institutions may consider the short term loan applications depending upon the feasibility of the project. The short term Project Loan can be availed for one year whereas the mid and long term project loans can be obtained for up to 10 years.
Why you need a project loan?
Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equity investors, known as ‘sponsors’, as well as a ‘syndicate’ of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms.
Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound or to assure the lenders of the sponsors’ commitment. Project finance is often more complicated than alternative financing methods. Traditionally, project financing has been most commonly used in the extractive (mining), transportation, telecommunications industries as well as sports and entertainment venues.
What a commercial loan?
A commercial loan is a debt-based funding arrangement that a business can set up with a financial institution. The proceeds of commercial loans may be used to fund large capital expenditures and/or operations that a business may otherwise be unable to afford.
Why you need a commercial loan?
A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property.
Commercial mortgages are structured to meet the needs of the borrower and the lender. Key terms include the loan amount (sometimes referred to as “loan proceeds”), interest rate, term (sometimes referred to as the “maturity”), amortization schedule, and prepayment flexibility. Commercial mortgages are generally subject to extensive underwriting and due diligence prior to closing. The lender’s underwriting process may include a financial review of the property and the property owner (or “sponsor”), as well as commissioning and review of various third-party reports, such as an appraisal.
Commercial Mortgage Advantages
Keep Control of Ownership through a Commercial Loan
One of the most important benefits of going with a commercial mortgage is that you retain total ownership over your business. Instead of selling an interest or raising funds you maintain complete control. Your success is entirely your own to keep. You’ve worked hard to get your business in a situation where a commercial mortgage makes sense for you. Don’t risk the future of your company by selling interest, especially when commercial loans help you maintain that control.
You Benefit as the Property Appreciates in Value
Additionally, when you own your own property or building you gain the advantages of appreciation on that property. Much like a traditional residential mortgage your initial investment could see positive gains on return. The money received from the appreciation of your property can be used for further expansion, research and development, advertising or in any other way that you as the business owner sees fit. This advantage alone makes commercial property investment worth it. Our commercial lending specialists can help craft a plan for you that shows which properties are best for your companies situation. Together you can find the right solution to grow your business.
Improve Cash Flow with a Commercial Loan
Another great advantage of owning your own business property is improved cash flow. With a minimal up-front payment you can design a repayment schedule that fits your needs perfectly. This flexibility allows you to keep your money longer allowing you to spend it where you see fit. Your repayment schedule will be determined by the kind of property as well as the needs of your company. We can help you determine the repayment schedule that works best for your situation.
Commercial Properties are Eligible for Tax Deductions
When owning your own commercial property you’ll also be the beneficiary of tax breaks. Interest paid on your commercial mortgage is tax deductible as well as any maintanence or repairs that you make to the property.
Property Depreciation Reduces Taxes and Improves Cash Flow
Not only can you write-off interest paid on your property you can also claim a depreciation deduction. This unique concept allows business owners to deduct the amount your property has depreciated by in the last year. Depending on your property your depreciation deduction can sometimes range in the tens of thousands of dollars. This advantage to commercial properties can save you money over time.