Nature of facility
- For purchase/ construction of New/ Old shops/ offices building and/or
- Repair/Modernisation/ Renovation/ Face lifting of existing shops/office building
- Expansion/ Addition/ Alteration in Shops/office buildings
- Shop for Dealers Showroom etc.
- Shop for Training centers, service centers etc.
- Shop for Repair center/ garage etc
- Office chamber for Consultant/ Chartered Accountants and other professionals/ Self Employed,
- All furniture/ fixtures- electrical fittings and other accessories required for the showroom/ office shops
Applicability of Scheme
- For Shops/ Offices/ Service centers in commercial area having marketable title. Professionals and self-employed category may include Doctors, Engineers, Surveyors, CAs, CSs, Lawyers, Interior decorators, consultants, garages, workshops, boutiques and others.
Quantum of Loan
- 75% of the cost of purchase (the cost of Stamp Duty & Registration Charges are not to be financed.)
- Minimum loan Amount for purchase/ construction of New/ Old shops/ offices building: Rs. 5 lacs
- Minimum loan Amount for Repair/ Modernisation/ Renovation/ Face lifting of existing shops/ office building including Expansion/ Addition/ Alteration in Shops/office buildings including and for all furniture/ fixtures- electrical fittings and other accessories required for the showroom/ office shops: Rs. 5 lacs.
- Maximum loan Amount: Rs. 2 Crores
Rate of interest
Upto 3 years
MCLR + 2.25%
Above 3 years & upto 5 years
MCLR + 2.50
Above 5 years & upto 7 years
MCLR + 2.75
Above 7 years
MCLR + 3.00
- Mortgage of shop
- Hypothecation of other assets including facelift, furniture, fixtures etc. purchased out of Bank's finance.
- Shop under hire purchase scheme cannot be financed this scheme.
- The residual life of shop/building should be atleast 10 years more than the loan tenure which will be obtained through valuation report. The shop / building should not be declared dangerous.
- Lease hold property can be financed if The permanent lease of 30 years of more from Government/ Government institutions/development authorities, the following aspects to be considered while sanctioning loan.
- Maximum loan tenure of 10 years with maximum moratorium period
- Repayment in EMI.
- 0.50% of the loan amount with maximum of Rs. 1 lac plus applicable service taxes.
- Personal Guarantee of the person/ persons having net worth more than amount of loan applied after deducting existing liability .
- In case of loan to firm/company, personal guarantee of partners/ directors as the case may be, should be taken.
- The shop should be insured against fire, riots wherever required and also against other appropriate hazards, such as earthquake, flood, lightning etc. with the usual Bank clause for full value of the property.
- self-attested photocopy of KYC documents of borrowers/guarantors
- Latest I.T.Return/ I.T.assessment Order of borrowers/guarantors
- CST/VAT returns AND audited Balance sheets/P&L a/cs of borrowers
- Valuation certificate from the approved valuer confirming age of shop and remaining life of in case of existing shop .
- The approved plan of Construction.
- Architects/Engineers Certificate confirming cost of construction / cost of repairs / Cost of improvements / cost of Extension.
- Registered agreement to Sale/purchase the shop with link title deeds.
- All other papers relating to title deeds of property.
- NOC from society/builder/seller /Lessor to Bank for sanctioning the loan for purchase of shop by applicant.
- Undertaking by society/Lessor to register bank's lien on shop/share certificate.
- Agreement for construction with Builder/Developer