Mortgage your commercial property — raise capital without selling it.
A registered mortgage over an office, shop, showroom, godown or industrial unit you already own, converted into a term loan or overdraft. End-use is unrestricted: working capital, expansion, debt consolidation or a fresh acquisition.
How lenders size a commercial mortgage
Two independent tests decide your sanction, and the lower of the two wins. The first is the security test — loan-to-value against the lender's own technical valuation of the property. The second is the servicing test — whether your cash profits cover the proposed EMI with room to spare.
Commercial assets carry a deeper valuation haircut than residential ones because resale depth is thinner. Where a flat may fetch 70–75% LTV, a comparable shop or office typically lands at 55–65%, and a single-user industrial shed lower still.
The servicing test is where most files are quietly cut back. Banks want a Debt Service Coverage Ratio of at least 1.25–1.50x on the combined post-sanction debt. If your DSCR computes below that, the credit team reduces the loan rather than rejects the file — which is why arriving with the DSCR already modelled changes the outcome.
A registered mortgage attracts stamp duty on the loan amount, charged at state rates — in West Bengal this is a material line item on a large facility, and it is payable before disbursal. Budget for it at the sanction stage rather than discovering it at the registrar.
Indicative pricing in 2026
Bands reflect what our panel has been sanctioning through mid-2026. Final pricing moves with CIBIL / CMR score, banking conduct and the quality of the security.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Why commercial mortgage files stall — and what fixes them
Commercial use never formally sanctioned
A shop trading out of a residentially-sanctioned ground floor is extremely common in older Kolkata buildings. Credit teams either refuse the security or value it as residential-with-deviation, cutting mortgageable value sharply. Obtain the change-of-use endorsement or route the file to a lender that underwrites the deviation openly.
Old charges never released on record
A loan repaid in full eight years ago still shows on the Encumbrance Certificate unless the lender filed the satisfaction of charge. On companies it also sits on the MCA register as an open CHG-1. Both add three to six weeks. Pull a fresh EC and your MCA index of charges before the file goes in.
Rent income claimed but never banked
Owners routinely count tenant rent towards servicing capacity, but if it arrives in cash or is absent from the ITR, no credit team will recognise it. Twelve months of banked, ITR-declared rent under a registered leave-and-licence agreement can lift an eligible sanction by a quarter or more.
Documents required
Incomplete files cause most multi-week delays. We assemble the full set upfront, in the order credit teams read it.
KYC & constitution
- PAN & Aadhaar of all promoters / partners / directors
- Certificate of incorporation, MOA-AOA or partnership deed
- Board resolution or partners' authority letter
- GST registration & trade licence
Financials
- 3 years ITR with computation of income
- Audited balance sheet, P&L and schedules
- 12 months' bank statements of all operating accounts
- GST returns (GSTR-3B) for the last 12 months
- Existing loan sanction letters & repayment track record
Property papers
- Registered sale deed and 30-year title chain
- Sanctioned building plan & commercial-use approval
- Occupancy / completion certificate
- Encumbrance Certificate (13–30 years)
- Latest municipal tax and mutation receipts
From enquiry to disbursal
A commercial mortgage typically runs 21 to 40 days end-to-end. We compress the avoidable delays.
Security & DSCR read
We value the asset conservatively, model DSCR on the combined debt and tell you the realistic sanction before a single form is signed.
Title & deviation clean-up
EC, tax receipts, sanctioned plan, change-of-use and any open charges are resolved first — the single biggest source of delay.
Placement across the panel
The file goes to the three or four lenders whose credit policy actually fits this asset class, and we run them in parallel for competitive tension.
Legal, TIR, valuation, disbursal
Technical inspection, title investigation report, mortgage registration and disbursal — tracked to the finish.
Related facilities & deep-dive guides
Every facility below is placed through the same 80+ lender panel. The long-form guides carry the working numbers, worked examples and lender-by-lender detail.
Frequently Asked Questions
The questions our advisory desk is asked most often about Mortgage of Commercial Property.
Yes, and it usually helps. Documented rent strengthens the servicing case, and if the tenant is a good-quality corporate on a registered lease you may be better off under Lease Rental Discounting, where the rent stream itself is the primary security and pricing is sharper.
Two conditions matter: the lease must be registered, and the rent must arrive in the bank account and appear in your ITR. Cash rent counts for nothing in credit assessment.
Take the lender's technical valuation — not your market expectation — and apply 55–70% depending on asset type. Then test it against cash flow: most banks want a DSCR of 1.25–1.50x on total post-sanction debt.
The lower of the two numbers is your sanction. Applicants are usually surprised by the valuation, not the LTV, so we get an indicative valuation view early.
Where the borrowing is applied to business purposes, interest is generally allowable as a business expense under the Income Tax Act, and processing fees are typically claimed in the year incurred. The treatment depends on your entity structure and on the actual end-use being demonstrable.
We are not tax advisers — have your CA confirm the position for your specific facts before you rely on it.
Expect a processing fee of roughly 0.25–1.00% of the sanction, valuation and legal charges, CERSAI filing, and state stamp duty on the mortgage deed, which is charged on the loan amount and varies materially by state.
On a large facility, stamp duty is often the biggest single cost and it falls due before disbursal. We put the full cost sheet in front of you at the sanction stage.
Often yes, but at a lower number. Bank surveyors value only the sanctioned built-up area, so unauthorised construction is simply excluded — on an older industrial or commercial asset that can remove 20–40% of expected value.
Certain NBFCs underwrite deviations explicitly and lend against a larger share of the realisable value at a higher rate. Which route makes sense depends on how much you need and how quickly.
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