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Commercial Property Loan |
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Overview
Nedbank grants long-term finance to facilitate the
purchase of vacant land, existing and new
residential and business properties, as well as
additions or extensions to such property.
A building loan is beneficial for businesses in
order to grow their existing profile, or get into a
new market. Repayment period for the commercial
property developments is 10 years.
The property being developed is taken as security
against the loan and the bank will register a
mortgage bond over the property to confirm its
claim. Deposit of 20% of development or property
value is required.
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"long-term
finance to facilitate the purchase of
vacant land" |
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Features and Benefits
- Beneficial for building a commercial property or
residential property
- Commercial property loan is repayable over 10
years
- The client services interest payments during the
construction of the property
- The interest on this loan is generally lower than
that of a business loan, and overdraft
- Payments by the bank are made only after the
inspection by Bank approved quantity surveyors and
payment certificates issued.
Qualifying Criteria
- Application Letter
- Proof of Lease
- Approved Building Plan
- Building Permit
- Approval by W.A.S.A- undertaking to provide water
to the property
- Approval by L.E.C – undertaking to provide
electricity to the property
- Proof of Income (financial statements)
- Valid Passport
- Own contribution being from 10%
- Three quotations from Bank approved contractors
- Marital Status Declaration.
Loan Terms and Conditions
- The bank will register a Bond through its
attorneys
- The applicant must take a house owners’
insurance cove
- Life Cover equivalent to the Loan amoun
- Payments to contractor shall be against
certificates signed by the quantity surveyor, the
applicant and the contractor
- The client should undertake to provide the bank
with original written waiver of the contractor’s
lien in favour of the bank.
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