Keep In Mind These Points While Approaching An Nbfc For An Industrial Property Loan

By Author: financeandloan
Total Articles: 7
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As your company expands the need for people and space increases along with it at such times, the need for ample space arises to accommodate your growing workforce. Rather than renting out industrial space, purchasing industrial property works better as an investment and also acts as collateral in the long run.
Availing a loan to purchase industrial property largely depends on the source. Approaching banks for a loan can be a lengthy and tedious process. NBFCs are easily approachable when it comes to catering your finance needs.
Points to be kept in mind while approaching a NBFC for an industrial property loan:
Loan taker
The loan needs to be taken either by the promoter, proprietor or a partner of the company. According to the Companies Act, a loan cannot be taken by anyone who has not registered the company with the government.
Type
One of the biggest things people don’t realise about taking a loan from NBFCs is that you cannot take a loan against a property that already ...
... exists in your name. They offer loan only to those who are looking to buy new land or building for their company.
Another facet is that NBFCs offer loans if you are looking to construct a part of your company. If you already have land, you can apply for a loan to construct a shed or building on that particular land as long as it is for commercial purposes.
Tenure
The tenure can range anywhere between a minimum of three years or a maximum of six years.
Amount
The loan amount varies amongst different NBFCs. The loan amount ranges between ten lakh and goes up to three hundred lakh normally.
Industry
NBFCs are quite strict about the industry your company belongs to when you are looking for industry property loans. It needs to either be in the manufacturing, service, trading or distribution sector, for you to apply for a loan.
Apart from these pointers, do remember that your company needs to be at least three years in business before you are eligible to apply for industrial property loan. A copy of the balance sheet and P & L account