Oumar Malik
Oumar Malik
Chief Financial Officer
Oumar Malik is the Chief Financial Officer of iNewkhusi.com, a top financial platform offering banking, loans, credit cards, and insurance. With deep financial expertise, Oumar is key in developing strategies for growth and effective management of financial products and services. Based in Al Hamriya, Dubai, Oumar provides valuable insights and innovative solutions to help individuals and businesses manage their finances.
If you live in the UAE and are looking to buy a shop, office space or warehouse for your business, a commercial mortgage loan from Mashreq Bank could be a great option for you. With this loan you can take a loan up to 10 million dirhams, which you can easily repay over a period of 15 years.
In this article, we will tell you who is eligible for this loan, what documents are required for it, and what are its benefits. Additionally, we will also explain to you how this loan can help you if you want to refinance an already purchased property.
Through this article you will get all the information related to Mashreq Bank’s commercial mortgage loan, so you have to read this information completely.
What is Mashreq Bank’s Commercial Mortgage Loan?
Mashreq Bank’s Commercial Mortgage Loan is a loan that you can take to purchase or refinance a shop, office space, warehouse, or any non-residential property for your business.
You can use this loan to buy any commercial space, so that your business can grow. Mashreq Bank gives you a loan of up to 10 million dirhams under this loan, which you can repay gradually over a period of up to 15 years.
For this loan, you have to submit some important documents to the bank, and this process is quite easy and fast.
This loan is specially designed for those who need a good commercial space to expand their business and for this they require large scale financial assistance.
Mashreq Bank Commercial Mortgage Loan Highlights
Mashreq Bank’s Commercial Mortgage Loan comes with high loan amounts up to Dh10 million, flexible repayment tenures of up to 15 years, and low interest rates to help you grow your business.
| Highlights | Description |
|---|---|
| Loan Amount | Loans available up to AED 10 million. |
| Loan Period | Loan repayment period up to 15 years. |
| Interest Rate | Low interest rates, which are beneficial for business customers. |
| Property Type | For shops, office spaces, warehouses, and other commercial properties. |
| Qualification | UAE residents and expatriates who are self-employed. |
| Required Documents | Copies of passport, visa, and Emirates ID, income statement, and other required documents. |
| Processing | Easy and fast processing. |
Mashreq Bank Commercial Mortgage Loan Benefits
Mashreq Bank’s commercial mortgage loan offers several key benefits for your business. This loan offers you low interest rates, easy processing and flexibility. You can not only buy a new property but also refinance an existing property. Here are the key benefits of this loan:
1. Higher loan amount: You can get a loan up to 10 million dirhams, which will help you meet your larger business expenses.
2. Long term: You can repay this loan in a tenure of up to 15 years, which will keep your EMI low.
3. Low interest rates: Mashreq Bank offers competitive interest rates, which reduce the total cost of your loan.
4. Easy process: The loan process is simple and transparent, making it easy to apply.
5. Flexibility: This loan gives you the option to buy a new property as well as refinance your existing property.
6. Various property options: You can buy a shop, office space, warehouse or other commercial space.
7. Financing Options: This loan is available to both residents and non-residents in the UAE.
8. Focus on Commercial Space: The main objective of this loan is to provide financial assistance for commercial spaces.
9. Loan Approval: The loan amount is approved based on your eligibility.
10. Required Documents: The application requires important documents like passport, visa, and income statement.
11. Refinance option: If you already own a property, you can refinance it.
12. Loan Manager: The bank provides complete assistance in managing your loan.
13. Property Insurance: Property insurance is included in the loan terms, which ensures protection.
14. Life Insurance: Life insurance is also mandatory, which increases the security of the loan.
15. Pre-Approval: You can get loan approval in advance, which helps in decision making.
16. Flexible terms: Loan terms are flexible as per the needs of your business.
17. Secure Transactions: All transactions are safe and secure.
18. Professional Support: The Bank’s experts are available to assist you.
19. Customer Support: The customer care of the bank resolves any queries you may have.
20. Timely payment: Timely payment improves your credit rating, which provides financial benefits in the future.
Home Loan EMI Calculator
Eligibility Criteria – Mashreq Bank Commercial Mortgage Loan
To apply for a commercial mortgage loan from Mashreq Bank, there are certain requirements that must be met. This loan is available to both UAE residents and non-residents, but the applicant is required to fulfill certain criteria set by the bank for the application to be approved. Here are the eligibility criteria for this loan:
1. Age Limit: Minimum age at the time of application should be 21 years and maximum age should be 65 years (salaried and non-resident) and 70 years (self-employed).
2. Residency Profile: Loans are available to UAE resident expatriates, UAE citizens, and non-residents.
3. income profile: This loan is available to salaried and self-employed individuals.
4. Loan-to-Value (LTV) Ratio: Financial assistance can be up to a maximum of 80% for expats, 85% for UAE citizens, and 60% for non-residents.
5. loan period: Maximum tenure of 25 years for residential properties and maximum 15 years for commercial properties.
6. credit history: Your credit score and history will be assessed, which may affect loan approval.
Documents Required for Mashreq Bank Home Loan
There are some important documents you will need when applying for a Mashreq Bank home loan, including passport, income certificate, bank statement, and property related documents. These documents will help make your loan application process simpler and faster.
1. Passport: All applicants must hold a valid passport, which includes a UAE residence visa.
2. Residency Visa: A copy of a current and valid residence visa is required for expats residing in the UAE.
3. Income Certificate: Salary certificate or salary slip for salaried individuals, and income tax return or audited financial statements for self-employed individuals.
4. Bank Statement: Bank statements of the last 6 months to assess your financial position.
5. Property Documents: Documents related to the property being purchased, such as a sale agreement or property deed.
6. ID Proof: Emirates ID for UAE citizens, and copy of Emirates ID with residence visa for expats.
7. Credit Report: Credit report from Etihad Credit Bureau, which provides information about your credit score and history.
Mashreq Bank Home Loan – Interest Rate, Tenure, Loan Amount
It is very easy to take a home loan from Mashreq Bank. When you take a home loan, how much interest you will be charged, how much loan amount you can get, and how much time you can repay the loan, all this information is given below:
1. Loan Amount:
You can get a maximum home loan up to AED 10 million from Mashreq Bank. This amount can be helpful in purchasing your new house or improving your existing property.
2. Tenure:
The repayment tenure of home loan can be up to 25 years. Due to this longer tenure, your monthly installments remain lower, making it easier to repay the loan.
3. Interest Rate:
Home Loan interest rates at Mashreq Bank are low and attractive. You get the benefit of competitive interest rates, which reduces the overall cost of the loan. Interest rates are determined based on the amount and tenure of your loan.
Fees and Charges (Mashreq Bank Home Loan)
Mashreq Bank home loan also comes with some important fees and charges which include processing fee, group life insurance fee, property valuation fee, and early settlement fee. These charges may vary depending on the loan amount, tenure, and other terms. The purpose of these charges is to ensure smooth loan processing and to make the financial services availed by you secure.
| Service Name | Fees/Charges |
|---|---|
| Processing Fee (Fresh) | 1.05% of the loan amount or AED 10,000 (whichever is less). |
| Group Life Insurance Fees | 0.165% per annum on the outstanding amount of the loan. |
| Part-time or Early Settlement | 1.05% of the loan amount or AED 10,000 (whichever is less). |
| Property Evaluation Fee | AED 2,625 |
| Property Insurance Fees | 0.06% of property value. |
| Late Payment Fee | No charges |
| Pre-Approval Charges | AED 1,050 (Fixed Fee) |
How to Apply for Home Loan from Mashreq Bank
To avail a home loan from Mashreq Bank, you can apply for this loan by visiting the nearest branch or through the official website of the bank. Here is the complete process to apply:
1. Fill the Application Form:
- First of all, visit Mashreq Bank website or get the home loan application form at the nearest branch and fill it correctly.
2. Prepare Documents:
- Prepare necessary documents like passport, visa, Emirates ID, proof of income, property documents, and insurance documents.
3. Apply Online or in Branch:
- You can apply online on Mashreq Bank website or visit the nearest branch and submit the application.
4. Submit Documents:
- Submit all the required documents along with the application form. If you are applying online, upload the documents digitally.
5. Processing and Pre-Approval:
- The bank will review your application and documents. Usually you will get pre-approval within 10 minutes.
6. Loan Approval:
- After pre-approval, the bank will complete your entire application process and contact you for final approval of the loan.
7. Loan Disbursal:
- Once the loan is approved, the amount will be transferred to your account as per the prescribed process.
By following these easy steps you can easily get a home loan from Mashreq Bank.
Comparative Analysis of Commercial Mortgage, Resident Home Loan, and Non-Resident Home Loan
Here we are going to compare three different types of home loans: Commercial Mortgage, Home Loan (Resident), and Home Loan (Non-Resident). This comparison will help you understand what the features of each type of loan are and which loan may be best suited for you. In this simple and concise comparison, we will look at the loan amount, interest rate, tenure, eligibility, and other important points.
| Feature | Commercial Mortgage (UAE Residents) | Home Loan (Residential) | Home Loan (Non-Resident) |
|---|---|---|---|
| Purpose | For offices, shops, and other commercial properties. | To buy a house | Buying a vacation home or investment property |
| Qualification | Business owners living in UAE | People doing salary or business living in UAE | Not resident in UAE; rules tightened for some nationalities |
| Loan Amount | Depending on the value of the property, a large sum can be obtained. | Depending on the value of the property, up to AED 10 million | Less than for residents; generally smaller amounts |
| Interest Rate | Higher than residential loans | Short and attractive | Higher than for residents |
| Tenure | Maximum 15 years | Maximum 25 years | Shorter than for residents, about 15-20 years |
| Down Payment | 20-40% | 20-25% | 25-50% |
| Income Requirement | Good income, related to business | Proof of stable income (from salary or business) | Higher income than residents required |
| Documents | Business documents, financial statements, property documents | Passport, Emirates ID, income proof, property documents | Passport, income proof, bank statement, property documents |
| Property Type | Offices, warehouses, shops | House (flat, villa) | Homes, limited to specific projects |
Information about the types of loans that can be taken from Mashreek Bank is given in the points below, which are as follows:
- Commercial mortgages are for people who want to buy business properties. In this, interest rates and down payment are higher.
- Home loans (residential) offer longer tenures and lower interest rates, making them available to more people.
- Home loans (non-residents) have higher down payments and stricter rules, but are still a good opportunity for non-residents to invest in the UAE.
Why Choose Home Loan from Mashreq Bank?
The reason for choosing a home loan from Mashreq Bank is that this bank offers great facilities and flexibility for you. Its quick pre-approval process lets you know the loan status as soon as possible, and the highest loan amount up to AED 10 million and long repayment tenure of 25 years eases your financial burden.
Low interest rates, no salary transfer required, and simple documentation process make this loan even more attractive. Furthermore, additional features like life and property insurance ensure your protection.
For all these reasons, taking a home loan from Mashreq Bank is a great option for your financial and housing needs.
Mashreq Bank Commercial Mortgage for UAE Residents: Things to keep in mind
When you are thinking of taking a Commercial Mortgage from Mashreq Bank, it is important to pay attention to some important points. By understanding these points, you can take the right decision and reduce your financial risk.
Things to keep in mind:
1. Interest Rates: There are two types of interest rates – one which remains fixed and the other which can change. You should understand which one is better for you and choose the one that fits within your budget.
2. Repayment period: Repayment period means how much time you have to repay the loan. Repaying over a longer period makes your monthly installments smaller, making it easier for you to repay the loan.
3. Loan amount: Decide wisely how much loan you want. It depends on what your needs are and how much your property is worth.
4. Eligibility: You must meet the bank’s criteria, such as your income, age and credit score. If all this is correct then it becomes easy to get a loan.
5. Documents: The loan requires certain documents, such as proof of your identity and income. Keep all this ready in advance so that there is no problem in taking the loan.
6. Insurance: It is good to insure your life and property. This protects the future of you and your property.
How about taking Mashreq Commercial Mortgage for UAE Residents Loan?
Taking a Mashreq Home Loan can be beneficial for you if you want to buy or invest in a residential or commercial property in Dubai or Abu Dhabi. Under this loan, you can avail the loan for a longer tenure and various interest rate options are available, making your repayment convenient. For UAE nationals and expats, you can get a large portion of the property cost as a loan.
However, you have to pay the monthly installments on time and keep all the required documents updated. If you do not follow these conditions, the bank can take possession of your property and have a negative impact on your credit report. Overall, if you understand and follow the terms and conditions of this loan properly, it can prove to be a good financial instrument for you.
FAQs: Mashreq Commercial Mortgage Loan
1. What is Mashreq Commercial Mortgage Loan?
This is a loan that you can use to purchase or refinance stores, office space, warehouses, or other commercial properties.
2. How much amount can I borrow for this loan?
You can borrow a maximum amount of up to AED 10 million for this loan.
3. What is the maximum tenure of the loan?
The maximum tenure of this loan can be up to 15 years.
4. Who can apply for this loan?
UAE residents, including UAE nationals and resident expats, can apply for this loan.
5. What should be the minimum age for this loan?
The minimum age for loan should be 21 years.
6. What should be the maximum age for loan?
The maximum age should be 65 years for salaried customers and 70 years for self-employed customers.
7. What documents do I need to apply for this loan?
You will need documents such as application forms, passport, visa, bank statements, and business license.
8. Is it mandatory for me to take property insurance?
Yes, it is mandatory to take property insurance. The amount of insurance is based on the value of the property.
9. Is life insurance also mandatory?
Yes, life insurance is also mandatory and has to be obtained before sanction of the loan.
10. What is pre-approval for loan?
Pre-approval is a process by which you know in advance your eligibility for the loan.
11. Do I have to pay any processing fee for the loan?
Yes, there are processing fees and other charges for the loan. This information can be found on the bank’s website.
12. Can I use this loan to repay my existing loan?
Yes, you can use this loan to repay your existing loan.
13. How are loan interest rates decided?
Interest rates are set by the bank and can be variable, based on EIBOR and the bank’s margin.
14. What if I do not pay the installments on time?
If you do not repay the installments on time, the bank can take possession of your property and affect your credit report.
15. Do loan interest rates change?
Yes, variable interest rates can change based on the 3 month EIBOR. Fixed interest rates remain stable.
Conclusion
Mashreq Commercial Mortgage Loan is a great option for purchasing or refinancing your commercial properties. It offers high amount and long term facilities. Submit all the required documents and insurance policies on time and follow the loan terms. You can utilize this loan properly by paying installments on time. I hope this information would have been very important for you. If you want to ask us any kind of question then you can comment below. You will get a reply within 2 hours. Please give your feedback below, it gives us a lot of motivation.
