Loan from Sberbank secured by commercial real estate

About the features of commercial mortgages, pros and cons

This type of lending is well developed in Germany, Spain, Greece, and many other European countries. There, entrepreneurs often purchase real estate to rent it out to third parties. This way they get another source of income. In Russia, commercial mortgages for legal entities are just beginning to develop. One of the main reasons is the excessive demands of banks on borrowers. This may include:

1. Restrictions on the type of commercial activity of a legal entity. For example, it cannot be issued if the business is related to the production of tobacco or alcohol products.
2. In terms of harmful emissions into the environment. A commission opinion is required on the level of pollution of natural landscapes.
3. Business efficiency and transparency of its conduct.
4. Stability of a company or individual entrepreneur. Commercial activity in the Russian Federation must last for at least 12 months.

The main advantages include the following factors:

• Possibility to rent out the purchased property for additional benefits;
• Business development is carried out using borrowed funds - equity capital is not withdrawn from the company’s turnover;
• Individuals and legal entities can participate in mortgage relations;
• The collateral can be not only the purchased property, but also the existing property;
• Interest rate - within 12-14% per annum;
• A fairly long contract period is 5-10 years.

The disadvantages of this process are:

• Down payment of 25% of the total cost of commercial real estate;
• Duration of the procedure and registration in several stages;
• The presence of certain requirements for the purchased property.

Under what conditions do banking institutions provide commercial mortgages?

Since the price of commercial properties is quite high, any bank, including Sberbank, can provide a mortgage for it without initial payments only if there is collateral that would not only cover the cost of the new property, but would make it possible to receive interest on the loan at the time of its use. a mortgage , as well as other similar financial instruments.

Which entrepreneurs find it easier to get a mortgage?

There are a number of factors that may influence a bank's decision to make a positive decision.

1. The tax system used by the borrower. Preference for those who use the general system rather than the “simplified” one.
2. Having a positive credit history.
3. Independence of the income of the borrower (legal entity or individual entrepreneur) from the season.
4. The borrower’s ability to prove to the bank his financial solvency and income stability, which implies transparency in business activities.

What documents will be required?

A big advantage of the product from Sberbank is the minimum number of papers required for registration. You will need to provide proof of the potential client's solvency, success and stability of business activity. To ensure that the application consideration takes as little time as possible, it is better to submit the maximum number of documents that will confirm information about the borrower.

The standard documentation package includes:

• Application form of the established form. It is recommended to fill out directly at a bank branch in the presence of a manager. He will be able to provide an explanation for each point and will also recommend the correct form for presenting information. You can also create it electronically and sign it in front of the employee.
• Passport of a citizen of the Russian Federation with a registration mark.
• Documents confirming ownership of entrepreneurial activity. Vary depending on the form of organization.
• Permits to conduct a certain type of activity - license, patent, etc.
• Tax reporting for 4 periods. This type of securities reflects the profitability of the enterprise.

Additionally, the bank has the right to request certificates confirming the absence of encumbrances on collateral or debt obligations. The required papers must be provided within three business days of the request.

During the consideration of the application, employees of the analytical department may visit the company’s office in order to study the situation. Thus, the bank is convinced of the presence of a profitable business not only on paper, but also evaluates the success and profitability. The client is warned about the procedure in advance, and the time of the visit is agreed upon.

Banks providing commercial mortgages

Today, commercial mortgages in the Russian Federation can only be obtained from some banks.

Sberbank

The preparation and provision of a sufficiently voluminous package of documents is required. But according to the terms of the loan itself, it ranks first:

• Loan term - up to 10 years;
• The down payment amount is 25% and 20% (for agricultural sector facilities);
• The loan amount is within 500 thousand rubles. — 600 million rubles. and 150 thousand (agricultural enterprises);
• The annual interest rate is 11.8%.

Rosbank

• Duration - up to 7 years;
• Loan amount - 1.0 million rubles. — 100.0 million rubles;
• Down payment - additional collateral required;
• The interest rate is 13.34%.

Raiffeisenbank

• Duration - up to 10 years;
• Down payment - additional collateral or guarantee from the business owner is required;
• Interest rate is determined individually.

VTB

• Duration - up to 10 years;
• Loan amount - from 4 million rubles;
• Down payment - up to 15%;
• The interest rate is 13.55%.

In addition to these banks, this type of lending is available in Rosselkhozbank, Absolut Bank, Uralsib, Intesa, MTS Bank, UniCredit and some others.

Commercial mortgage in Sberbank for individual entrepreneurs and business owners

Small business owners must be residents of the Russian Federation, the annual income of the enterprise must not exceed 400 million rubles, the period of production activity must be six months or more (for seasonal activities - at least 12 months). As in the case of individuals, there are no fees (for early repayment or issuance of a loan).

Conditions

A mortgage loan in 2020 from Sberbank for individual entrepreneurs and business owners provides for the following conditions:

• Receipt of collateral is possible only in Russian rubles
• When an Individual Entrepreneur or Business Owner approaches a loan from Sberbank, bank employees create a repayment period for the collateral, which is selected individually for each borrower.
• Down payment from 25% (for agricultural entrepreneurs from 20%)
• For the main loan, deferred payment (repayment) of up to one year is possible (the specified period is subject to adjustment and is associated with the history of monetary relations between the client and the bank).
• Collateral property is subject to compulsory insurance. Loan security (so-called loan guarantees and guarantors) is possible according to the following criteria:
• Pledge of newly acquired non-residential property
• Pledge of property rights resulting from the signing of an agreement on shared participation in construction, arising as a result of the acquisition of a real estate property under construction by a developer accredited by Sberbank
• To confirm a loan when purchasing properties from unauthorized developers, it is required to pledge existing property
• Providing current real estate
• Guarantee of legal entities and/or individuals
• Providing guarantees to JSC "Federal Corporation for the Development of Small and Medium Enterprises"

Mortgage conditions for legal entities

Each entrepreneur, before deciding to purchase non-residential real estate under the commercial mortgage program, decides for himself a number of issues regarding lending conditions. Among the most important are:

1. Annual rate. Today the average figure is in the range of 11.5 - 13.5%;
2. The maximum loan size is up to 200 million rubles.
3. The loan term is 7-10 years.
4. List of requirements for the borrower and the purchased object.
5. Requirements for collateral and additional security.

What category of citizens can be granted a loan?

The following categories of persons can apply for a mortgage for the purchase of commercial real estate:

• individual entrepreneurs,
• businessmen,
• top managers of companies and organizations.

Only banking institutions can provide them with a mortgage, which is considered an alternative to lending to legal entities. In addition to social status , the bank makes the following requirements for a potential client:

• the client's age must be between 21 and 65 years old,
• Clint must have Russian citizenship.

Receipt procedure

There are several schemes for obtaining a loan for the purchase of commercial real estate. The most common and accessible is the following:

1. Obtaining a guarantee from the bank to repay the remaining amount and paying the down payment from the borrower’s own funds.
2. Registration of property rights.
3. Receiving a loan and transferring the remaining amount to the seller.
4. Registration of a new legal entity for which property rights are registered.
5. Purchasing shares in a new business as the mortgage loan is paid off.

Requirements for the borrower

Banks have certain requirements for a borrower who plans to obtain a commercial mortgage. Here is a list of the main criteria:

• The borrower's age is from 21 years;
• Maximum age - 70 years (applicable for individual entrepreneurs);
• The borrower's company must be a resident of the Russian Federation;
• Revenue for 12 months does not exceed 400 million rubles;
• The period of activity of the enterprise is at least 6 months (for all areas of activity, except seasonal) and 12 months (for seasonal).

Real estate requirements

Banks also have special requirements for purchased non-residential real estate. Their list may differ slightly from bank to bank. Here we will look at the standard requirements that most financial institutions have.

1. The loan can only be issued for the purchase of a permanent building.
2. Geographically, the building must be located in the same region as the bank.
3. Cannot be in emergency condition.
4. Not subject to demolition.
5. Availability of a postal address;
6. The layout must be 100% consistent with that specified in the technical documentation.
7. Connection to all communications.
8. Not have any legal encumbrances and not be subject to litigation.
9. The object must be insured before concluding a transaction.

Required documents

The package of necessary documents to obtain a commercial mortgage includes:

• Internal passport of a citizen of the Russian Federation;
• Registration certificate of individual entrepreneur;
• Licenses (if any);
• Tax return for 2 years (for those who report under UTII) and for 1 year (for those working under OSNO).

In some cases, banks may require a number of additional documents, at their discretion.

List of banks providing business mortgages

The list of organizations willing to provide money for the purchase of commercial real estate is constantly changing. This is due to the fact that lenders constantly update the list of their existing programs, removing unclaimed and unprofitable ones and adding new ones.

Therefore, such offers are valid on an ongoing basis only in the largest institutions:

• Sberbank;
• Alfa-Bank;
• VTB;
• Rosselkhozbank.

It is important to emphasize that it is allowed to submit an application to several institutions at once, since you can refuse money at any time before signing the loan agreement.

Is it possible to get a mortgage for a business without a down payment?

Yes, there is such a possibility. Today, only a few banks issue commercial mortgages without a down payment. But instead, they usually require additional collateral or a surety from the business owners. On average, their conditions look like this:

• The maximum loan amount is 150 thousand rubles;
• Interest rate - 9 - 17.5% per year;
• Repayment period - 3 - 10 years;
• Bank commission for registration is up to 1.5%.

General conditions for obtaining a mortgage on commercial real estate for individuals

• Depending on the banking institution, the maximum amount will be differentiated and can reach up to 200 million rubles, but not more than 80% of the price of the object. But this is only if you do not plan to provide additional collateral.
• The loan is provided for a period of 5 to 15 years and depends directly on the solvency of the borrower and the security of obligations.
• If the loan is issued in rubles, then the mortgage interest rate starts at an average of 11.5%. If in foreign currency, then from 10%.
• The initial payment in the absence of collateral is on average 20 - 30% of the value of the property.
• Mortgages for commercial real estate for individuals in Sberbank on the most favorable terms can be provided with banking services to the borrowing organization, as well as with solid collateral and the shortest loan terms.

A significant advantage of a commercial mortgage is the possibility of the bank receiving a deferment of the down payment for a period of six months to one year, which allows entrepreneurs to accumulate the necessary capital so that the business can now generate income from the purchased property.

What is more profitable: commercial mortgage, rent or leasing?

An alternative to a commercial mortgage is renting or leasing. Each of these options has its own characteristics. In particular, when renting, the property remains the property of the owner. When leasing, the payment includes repayment of part of the cost of the property. Therefore, when the contract expires, the property becomes the property of the new owner.

Each of these options has its pros and cons. If we consider only from the financial side, then the most profitable option would be to issue a mortgage to a legal entity.

Leasing as an alternative to commercial mortgage

Among the main advantages of leasing are minimal risks and more convenient conditions. This concerns, first of all, the conditions of taxation and the maintenance of real estate in working order.

The main disadvantage is the higher interest rate. Therefore, when making a final decision, you need to carefully study all the banks’ offers, compare the conditions, carefully calculate everything and make a choice. In this case, it is imperative to take into account the company’s position in the market, real solvency and profitability, profitability of the business, and the purposes for which the loan is taken.

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Procedure for obtaining a mortgage

To apply for a loan to purchase real estate, the applicant must go through several stages, without which the loan procedure is impossible. These stages include collecting documents for signing the contract.

How to apply step by step

1. Choosing a mortgage type.

Determine the type of borrower (individual, legal entity, or small business owner). Make a decision on choosing a loan based on key parameters (period, interest rates, amount of obligations, issuing a loan with or without collateral).

1. Collection of documents

To speed up the process of obtaining a mortgage, it is necessary to collect financial, economic, constituent and registration documents at the initial stage.

1. Selection of housing

The borrower determines the most suitable property for himself based on geographic and economic factors.

1. Filing an application

An application for a loan can be submitted at any Sberbank branch. The borrower can find a map of branches on the bank's website. There, anyone can apply for a loan without being Sberbank clients.

1. The application is reviewed within 5 days from the date of submission both on the website and at the bank branch itself.
2. Registration of a mortgage

Employees of a banking organization determine for the borrower the most convenient, suitable and advantageous conditions for issuing a loan.

1. Confirmation
2. Registration

To select a suitable loan and the ratio of loan conditions, such as the rate on obligations, their amount and period of use), the borrower can use a loan calculator. It is best to test several combinations to find the most profitable one. Loan requirements vary greatly and are directly dependent on the amount of the down payment, profitability and repayment period for the amount of the obligation.

There are key positions that change the composition of the package of documents. The bank does not request a certificate of solvency if the borrower repays more than 50% of the obligations.

Package of documents

A complete list of required documents is available via the link on the Sberbank website.