Be it buying a new or resale commercial property for your business or purchasing a commercial plot, there are now loans for all these business endeavours to help you take your business to newer heights. Read this post to know how these loans can help your business.
While most businesses start small, they surely need a bigger space for their operations as they start growing. To keep up with the growing needs of their business, owners look for commercial properties or plots where their office can be built. But the high real estate prices in the country often discourage the business owners and limit their growth.
Fortunately, there are now lenders in India that offer exclusive commercial loans. If you are planning to buy a new or resale commercial property or a commercial plot, here is how loans for commercial properties can help you and your business.
- Lower interest rate
While there are other types of loans that you can take to buy commercial property, the loans that are exclusively designed for commercial property are cheaper than other options available. As such loans generally involve large amounts and long tenures, smallest of difference in the interest rate can help businesses save a lot of money.
This allows business owners to expand and grow while still keeping the overhead costs low.
- Long-term loans with convenient repayment options
Lenders in India now offer loans for buying commercial property for long tenures to make the repayment affordable for business owners. As your business grows, you surely need a significant amount of liquid money to keep up with the operations.
The long tenure and affordable repayments allow businesses to repay their loans while still maintaining healthy cash flow.
- Reduced risk of default
There is no shortage of businesses that have collapsed in the past due to the unavailability of funds to repay their loans or maintain their operations. Loan default is also a crime, and the lender can take necessary legal actions to recover their money.
As loans for commercial property come at affordable interest rates and long repayment tenure, the chances of default are significantly reduced.
- Tax benefit
The interest paid on the loan taken to purchase or construct a commercial property is eligible for tax deductions. Even the prepayment fee and processing fee paid to the lender is considered as interest and is also eligible for tax deduction.
Full interest on the amount of money borrowed for purchase or construction of commercial property can be claimed without any upper limit irrespective of whether you use the property for your own business or rent out the property.
- Retain business ownership
An alternative that has got very popular in the past few years for businesses wanting to expand is capital investments. However, it requires a business owner to sign over a part of their business to the investors in return for the money they invest in the business.
However, a commercial property loan does not have such requirements. You continue retaining the ownership of your businesses even after taking the loan.
With the increasing competition across every industrial sector, growth and expansion have become critical for every successful business. If you are planning to buy a commercial property but lack the required funds, these are some of the top ways in which a commercial loan for property can help your business.