Commercial Loan Requirements: What You Need to Qualify for a Business Property Loan

When you're looking to buy a commercial property—like an office building, retail space, or warehouse—you don't just need cash. You need to meet commercial loan requirements, the set of financial and documentation standards lenders use to approve business property loans. Also known as commercial real estate financing criteria, these rules are stricter than residential mortgages because the property is meant to generate income, not just house a family. Lenders don't just look at your personal credit—they want to see if the building itself can pay for the loan.

One of the biggest factors is your credit score, a three-digit number that shows how reliably you’ve paid back debt in the past. Also known as commercial loan credit score, most lenders in India expect at least 680, but top deals often need 720 or higher. If your score is below 650, you might still qualify, but you’ll pay more in interest or need a bigger down payment. Then there’s cash reserves, the money you have saved beyond your down payment. Lenders want to know you can cover at least six months of loan payments if the property sits empty for a while. And don’t forget the property’s income potential, how much rent or business revenue the space can realistically bring in. Also known as net operating income, this number tells lenders if the asset can support the debt. If you’re buying a shop in a busy market, they’ll check past rental agreements. If it’s an empty warehouse, they’ll look at similar properties nearby.

Other common requirements include a solid business plan, at least two years of tax returns, and proof of business registration. Some lenders ask for a personal guarantee—meaning you’re on the hook if the business fails. You’ll also need an appraisal to confirm the property’s value matches the loan amount. The process isn’t just about numbers; it’s about trust. Lenders want to see you’ve done your homework, know the market, and aren’t guessing.

What you’ll find below are real guides that break down exactly what lenders look for, how to improve your chances, and what trips people up most. Whether you’re a first-time buyer or expanding your portfolio, these posts cut through the jargon and show you what actually works—no fluff, just facts.