Introduction
If you’re looking to invest in commercial property in Kolkata or need financing for your business expansion, understanding who offers better LTV on commercial properties in Kolkata between SBI and HDFC is crucial. The Loan-to-Value ratio determines how much funding you can secure against your commercial property, directly impacting your investment capacity and business growth potential.
In this comprehensive guide, we’ll compare SBI vs HDFC commercial property loans, explore high LTV commercial property loan options in Kolkata, and help you identify the best commercial mortgage lenders in Kolkata for 2025.
What is LTV in Commercial Property Loans?
Before diving into the comparison, let’s understand what LTV in loan against property means. LTV or Loan-to-Value ratio is calculated by dividing the loan amount by the property’s appraised value. For instance, if your commercial property in Kolkata is valued at ₹2 crore and you secure a loan of ₹1.5 crore, your LTV ratio would be 75%.
A higher LTV ratio means you can borrow more against your property value, requiring less upfront capital. However, lenders typically charge higher interest rates for higher LTV ratios due to increased risk exposure.
SBI Commercial Property Loan LTV in Kolkata
SBI Commercial Property Loan Overview
State Bank of India offers competitive commercial property financing options through multiple schemes. For businesses in Kolkata looking for commercial property financing, SBI provides both asset-backed loans and commercial real estate financing.
SBI LTV Ratio for Commercial Properties
According to the latest information for 2025, SBI offers the following LTV ratios:
Standard Commercial Property Loans:
- Maximum LTV: 75% for commercial properties
- Asset Backed Loan (Commercial Real Estate): 50-60% of realizable property value
- SBI Loan Against Property: Up to 60% LTV for personal LAP
SBI Commercial Property Loan Features
- Interest Rate: Starting from 8.50% p.a. (as of January 2025)
- Loan Amount: Up to property valuation limits
- Repayment Tenure: Up to 10 years for asset-backed loans
- Processing Fee: As per bank guidelines
- Prepayment Charges: Up to 4%
Eligibility Criteria for SBI Commercial Property Loan
To qualify for the best bank for commercial property loan financing from SBI:
- Proprietorship, partnership, company, or LLP
- Property must be located in India
- Satisfactory credit history required
- Property must be SARFAESI Act compliant
HDFC Commercial Property Loan LTV in Kolkata
HDFC Commercial Property Loan Overview
HDFC Bank offers tailored commercial property loans for professionals and businesses in Kolkata seeking to purchase office spaces, commercial plots, or ready premises. Their HDFC loan against property schemes are designed for self-employed and salaried individuals.
HDFC LTV Ratio for Commercial Properties
HDFC Bank’s LTV offerings for commercial properties in Kolkata:
Commercial Property Financing:
- Loan Against Commercial Property: Up to 60% of current market valuation
- Highest LTV: When property is self-occupied and used by applicants
- HDFC Loan Against Property: Up to 70% for residential, 60% for commercial
HDFC Commercial Property Loan Features
- Interest Rate: 8.75% to 9.40% p.a. (varies based on profile)
- Loan Amount: Based on property value and repayment capacity
- Repayment Tenure: Up to 15 years
- Processing Fee: Up to 1.5% of loan amount or ₹4,500, whichever is higher
- Prepayment Charges: 2% plus GST for fixed-rate loans (if exceeding 25% of opening balance)
Eligibility Criteria for HDFC Commercial Property Loan
For securing commercial property financing Kolkata from HDFC:
- Self-employed professionals (Doctors, CAs, Lawyers)
- Business owners and proprietors
- Minimum 3 years of business vintage
- Good credit score (preferably 700+)
- Property in operational cities
SBI vs HDFC: Direct Comparison for Kolkata Commercial Properties
Let’s compare these two leading banks side-by-side to determine who offers better LTV on commercial properties in Kolkata:
LTV Ratio Comparison
| Parameter | SBI | HDFC |
|---|---|---|
| Maximum LTV | 75% (Standard) / 50-60% (Asset Backed) | 60% (Commercial) / 70% (Residential LAP) |
| Self-Occupied Commercial | 50-60% | 60% (Higher for self-occupied) |
| Vacant/Rented Commercial | 50% | Lower than self-occupied |
Winner: SBI offers a higher maximum LTV at 75% for standard commercial property loans, making it the better choice for those seeking maximum leverage.
Interest Rates Comparison
| Bank | Interest Rate Range | Calculation Method |
|---|---|---|
| SBI | 8.50% p.a. onwards | Daily reducing balance |
| HDFC | 8.75% to 9.40% p.a. | Linked to RPLR (Retail Prime Lending Rate) |
Winner: SBI offers slightly lower starting rates at 8.50% p.a., providing cost advantages over the loan tenure.
Loan Tenure Comparison
- SBI: Up to 10 years (Asset-backed loans)
- HDFC: Up to 15 years
Winner: HDFC offers longer repayment tenure, allowing for lower EMIs and better cash flow management.
Processing Fee Comparison
- SBI: As per bank guidelines (typically competitive)
- HDFC: Up to 1.5% of loan amount
Winner: SBI generally has more favorable processing fees for high LTV commercial property loan Kolkata seekers.
Prepayment Flexibility
- SBI: Up to 4% prepayment charges
- HDFC: No charges for floating rate (individuals); 2% + GST for fixed-rate loans
Winner: HDFC offers better prepayment flexibility for floating-rate borrowers.
Best NBFCs for Commercial Property Loans in Kolkata
While banks offer competitive rates, NBFCs for commercial property loan Kolkata provide alternative financing options with unique advantages:
Top NBFCs Offering High LTV Commercial Property Loans
1. Bajaj Housing Finance
- LTV: 50-55% for commercial properties
- Interest Rate: Starting from 8.99% p.a.
- Quick disbursal in 72 hours post-verification
2. Tata Capital
- LTV: Up to 65% for select commercial properties
- Flexible eligibility criteria
- Tata Capital Loan Against Property
3. LIC Housing Finance
- Competitive LTV ratios
- LIC Housing Finance LAP with favorable terms
4. L&T Housing Finance
- Strong presence in Kolkata
- L&T Housing Finance LAP
NBFC vs Bank Loan: Which is Better?
NBFCs Advantages:
- Faster processing (7-15 days vs 15-30 days)
- More flexible eligibility criteria
- Higher approval rates for business loan without ITR
- Better for businesses with fluctuating income
Bank Advantages:
- Lower interest rates
- Higher loan amounts
- Better brand trust
- More branches for servicing
For detailed comparison, read our guide on NBFC vs Bank Loan Against Property.
Factors Affecting Commercial Property LTV in Kolkata
Understanding the 7 factors that affect LAP eligibility is crucial for maximizing your LTV:
1. Property Location and Type
Properties in Kolkata’s prime commercial areas like Dalhousie, BBD Bag, and Park Street command higher valuations and better LTV ratios.
- Grade A Commercial Properties: Highest LTV (up to 75%)
- Central Business District (CBD): Better valuation and LTV
- Suburban Commercial: Moderate LTV (50-60%)
2. Property Usage
- Self-Occupied: Highest LTV ratio
- Rented with Stable Tenants: Good LTV
- Vacant Commercial: Lower LTV
3. Credit Score and CIBIL Rank
A strong CIBIL score for loan against property significantly impacts your LTV:
- 750+ Score: Maximum LTV eligibility
- 700-750: Standard LTV
- Below 700: Reduced LTV or rejection
Learn how to improve your CIBIL score for better loan terms.
4. Property Valuation
Professional loan against property valuation determines the maximum loan amount. Factors include:
- Current market rates in Kolkata
- Property age and condition
- Legal documentation clarity
- Rental yield potential
5. Borrower’s Repayment Capacity
Lenders assess your business loan eligibility based on:
- Monthly income and cash flows
- Existing debt obligations
- Business stability and vintage
- ITR and financial statements
6. Loan Amount Required
The highest loan amount commercial property loan Kolkata depends on both property value and your repayment capacity.
7. Property Documentation
Clear titles and proper documentation are essential. Review our documents required for mortgage loans checklist.
How to Get the Highest LTV Commercial Property Loan in Kolkata
Step 1: Property Selection
Choose properties in prime locations like:
- Dalhousie commercial properties
- BBD Bag office spaces
- Park Street commercial units
- Salt Lake Sector V IT spaces
Step 2: Improve Your Credit Profile
- Maintain good CIBIL rank for business
- Clear existing dues
- Avoid common credit mistakes
Step 3: Professional Property Valuation
Get accurate property assessment to justify higher LTV requests.
Step 4: Compare Multiple Lenders
Use commercial mortgage calculator Kolkata to compare:
- Interest rates
- Processing fees
- LTV ratios
- Repayment tenure
Step 5: Prepare Complete Documentation
Gather all required documents for LAP:
- Property papers
- Business financials
- Income proof
- Identity and address proof
Step 6: Apply Through Right Channel
Consider working with loan consultants in Kolkata for:
- Better negotiation on LTV
- Faster processing
- Expert guidance
Documents Required for High-Value Commercial Property Loan in Kolkata
For eligibility criteria commercial property loan above 5 Crore, prepare:
Personal Documents
- PAN Card
- Aadhaar Card
- Passport-size photographs
- Address proof
- Bank statements (6-12 months)
Business Documents
- Business registration certificate
- GST registration
- ITR for last 3 years
- Balance Sheet and P&L statements
- Bank statements (business account)
Property Documents
- Title deed
- Property tax receipts
- Approved building plans
- Encumbrance certificate
- Property valuation report
For complete documentation guidance, visit our documentation requirements page.
Commercial Property Loan Interest Rates: Banks vs NBFCs
Bank Interest Rates (2025)
| Bank | Interest Rate Range |
|---|---|
| SBI | 7.15% – 10% p.a. |
| HDFC | 8.75% – 9.40% p.a. |
| ICICI | 9% – 10% p.a. |
| Axis Bank | 8% – 10.05% p.a. |
NBFC Interest Rates (2025)
| NBFC | Interest Rate Range |
|---|---|
| Bajaj Finance | 8.50% – 15% p.a. |
| Tata Capital | 9% – 12% p.a. |
| LIC HFL | 9% – 16.5% p.a. |
| Shriram Finance | 9.50% – 17.5% p.a. |
Learn how to get the lowest interest rate on loan against property.
Special Considerations for Kolkata Commercial Real Estate
Kolkata CBD Commercial Property Financing
Properties in Kolkata’s Central Business District (Dalhousie, BBD Bag) offer:
- Higher property valuations
- Better LTV ratios (up to 80% from select NBFCs)
- Lower interest rates
- Faster approval
North Kolkata Commercial Properties
Areas like Dum Dum, Baranagar, and Belgharia:
- Moderate LTV (60-70%)
- Competitive interest rates
- Growing commercial potential
Salt Lake Sector V Commercial Spaces
IT hub properties offer:
- Premium valuations
- High rental yields
- Excellent LTV terms (70-75%)
Business Loan Against Property for Commercial Real Estate
If you’re looking for business loan against property, consider:
Advantages
- Higher loan amounts
- Lower interest rates vs unsecured loans
- Flexible end-use
- Longer repayment tenure
Best Use Cases
- Business expansion
- Working capital needs
- Debt consolidation
- Equipment purchase
Read our guide on business loan against property for detailed insights.
Zero Foreclosure Charges: Floating Rate Options
Many banks now offer zero foreclosure charges floating rate commercial property loans:
SBI: No prepayment penalty for floating rate loans to individuals HDFC: No charges for floating rate LAP (individuals only) NBFCs: Minimal or no fees after first year
Loan Against Commercial Land in Kolkata
For vacant commercial plots:
- LTV typically lower (50-60%)
- Higher interest rates
- Stricter eligibility criteria
- Location critical for approval
Explore loan against property options for land financing.
Common Mistakes to Avoid When Applying for Commercial Property Loans
Learn from common pitfalls:
- Not comparing multiple lenders
- Ignoring hidden costs
- Choosing wrong loan tenure
- Inadequate documentation
- Not reading terms and conditions
Read our complete guide on common mistakes to avoid.
Tax Benefits on Commercial Property Loans
Commercial property loans offer significant tax benefits:
- Interest paid is tax-deductible as business expense
- Depreciation benefits on commercial property
- Reduces taxable business income
How CreditCares Can Help
As Kolkata’s leading loan consultant, CreditCares offers:
- Free eligibility assessment
- Comparative analysis of lenders
- Documentation support
- Negotiation for best LTV and rates
- End-to-end loan processing assistance
Connect with our experts for personalized guidance on commercial property loans in Kolkata.
FAQs: Commercial Property Loans in Kolkata
Q1: Who offers better LTV on commercial properties in Kolkata – SBI or HDFC?
SBI offers better maximum LTV at 75% for standard commercial property loans compared to HDFC’s 60%. However, HDFC provides longer tenure (15 years vs 10 years) and better prepayment flexibility for floating rate loans.
Q2: What is the highest LTV available for commercial property loans in Kolkata?
The highest LTV for commercial property loans in Kolkata ranges from 75-80%. SBI offers up to 75% LTV for standard commercial loans, while select NBFCs may offer up to 80% for premium properties in prime locations like Dalhousie and BBD Bag.
Q3: Can I get a commercial property loan above 10 crores in Kolkata?
Yes, both major banks and NBFCs offer commercial property loans above ₹10 crores in Kolkata. Eligibility depends on property value, your repayment capacity, business financials, and credit score. Properties in Kolkata CBD areas typically qualify for higher loan amounts.
Q4: What is the minimum CIBIL score required for commercial property loans in Kolkata?
Most banks require a minimum CIBIL score of 700+ for commercial property loans. However, some NBFCs may consider applications with scores as low as 650 with strong income backing and higher down payment. A score of 750+ ensures the best LTV and interest rates.
Q5: How long does commercial property loan processing take in Kolkata?
Banks typically take 15-30 days for loan processing, including property valuation, document verification, and legal checks. NBFCs offer faster processing of 7-15 days for pre-qualified applicants with complete documentation.
Q6: What are the documents needed for high-value commercial property loan processing in Kolkata?
Key documents include: PAN Card, Aadhaar Card, bank statements (6-12 months), business registration, GST certificate, ITR for 3 years, Balance Sheet, P&L statements, property title deed, tax receipts, and encumbrance certificate. For loans above ₹5 crore, additional business vintage proof may be required.
Conclusion: Making the Right Choice
When deciding between SBI vs HDFC for commercial properties in Kolkata, consider:
Choose SBI if you need:
- Higher LTV (up to 75%)
- Lower starting interest rates (8.50% p.a.)
- More competitive processing fees
Choose HDFC if you want:
- Longer repayment tenure (15 years)
- Better prepayment flexibility
- Dedicated relationship manager support
Consider NBFCs if you require:
- Fastest processing (7-15 days)
- Flexible eligibility criteria
- Higher approval chances with moderate credit scores
For personalized guidance on securing the best LTV commercial property loan in Kolkata, contact CreditCares – your trusted loan against property consultant.
Ready to secure your commercial property loan in Kolkata?
Get expert assistance from CreditCares and unlock the best financing options for your commercial real estate needs. Whether you’re looking at properties in Dalhousie, BBD Bag, Park Street, or anywhere in Kolkata, we help you secure maximum LTV at competitive rates.
📞 Contact us today for a free consultation and personalized loan solutions tailored to your business requirements.
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