Loan for commercial real estate at VTB

The main differences between residential and commercial mortgages

The loan issued by VTB for non-residential real estate is a fundamentally different banking product in comparison with a conventional mortgage for an apartment, apartment or house, as well as in comparison with car loans or consumer loans. The bank puts forward serious demands both on the property and on the client’s solvency, because it risks a lot.

A commercial mortgage can be issued to both an individual and a legal entity. The difference between taking out a mortgage for an individual and for a legal entity is only in the loan amount. In the second case it will be much larger.

It is worth noting that VTB is reluctant to issue commercial mortgages, because selling collateral in the form of a warehouse or office is not as easy as an ordinary apartment. Based on this, the loan conditions are quite strict: the rates are high, and the loan term is limited to a maximum of 10 years.

The client’s application is considered by VTB credit analysts for quite a long time. VTB often sends its employee to an individual entrepreneur so that he can personally verify his stable income and the liquidity of the premises.

Lending terms

VTB pursues a loyal policy. Therefore, businessmen at VTB can count on good conditions relative to other financial organizations. They look like this:

VTB requirements

By issuing mortgages for legal entities, VTB is at risk. The fact is that novice businessmen can “burn out” and stop fulfilling their obligations to the bank. That is why VTB has developed quite strict requirements for mortgages on commercial real estate for any purpose.

To a legal entity and an individual

Only those small businesses that have been operating for at least 6 months can obtain VTB approval. It must be successful and bring a stable and high income. A prerequisite for legal entities is also to have a personal account with VTB Bank.

If a company was a VTB client before applying for a mortgage loan for real estate, it can count on benefits.

Entrepreneurs can also take out this loan for themselves. To do this, they must conduct their activities without forming a legal entity for six months. The borrower must not have a negative credit history or negative business activity.

To the premises

Non-residential real estate includes premises intended for warehouses, workshops, shops, restaurants, and so on. The bank puts forward certain requirements for them:

• area from 150 sq. m;
• capital nature of the construction;
• no encumbrances.

VTB gives six months to find suitable real estate. Each option is carefully studied by the bank, so the borrower must make sure in advance that the property is suitable.

VTB mortgage calculator in 2021 - calculate the amount online

VTB Bank's mortgage calculator will help you find a profitable mortgage in 2021.

Online calculation using a mortgage calculator allows you to receive a full calculation of payments and the amount of overpayment without contacting VTB Bank. Using this mortgage calculator, you can find VTB Bank mortgage programs with a minimum rate and a maximum, which also provide for early repayment of the mortgage.

Calculating a mortgage at VTB in 2021 is very simple. To do this you must:

• Go to the official website of VTB Bank
• Fill in the loan amount and the desired term for which you want to take out a mortgage from VTB
• Click - calculate your mortgage
• VTB Bank's mortgage calculator will show you the amount of monthly payments and overpayments for the entire term.

The online service will help you choose the best VTB Bank mortgage loan and the minimum interest rates on a loan to buy an apartment. This calculator will also be useful if you want to buy real estate on the secondary market or in a new building.

It is also worth considering that for VTB Bank salary clients, mortgage interest rates are 1-2% lower.

Online mortgage calculator for VTB Bank in other cities

• VTB Bank mortgage calculator in Moscow
• VTB Bank mortgage calculator in St. Petersburg
• VTB Bank mortgage calculator in Yekaterinburg
• VTB Bank mortgage calculator in Kazan
• VTB Bank mortgage calculator in Nizhny Novgorod

Online services of other banks

• Gazprombank mortgage calculator
• Rosselkhozbank mortgage calculator
• Alfa-Bank mortgage calculator

You need to create a range in your head, on the left of which there will be a minimum bid for the product, on the right - 20-25% (maximum bid). You then need to evaluate yourself as a borrower and place somewhere in that range according to your assessment. You are “pushed” in the direction of increasing the rate: lack of Russian citizenship, low income, age under 25, problems with credit history, short work experience, work in a small company.

The maximum term is 30 years, amounts range from 600,000 rubles to 60,000,000 rubles for all mortgages, except for a mortgage on a house, for a house they give from 500,000 rubles to 8,000,000 rubles.

Design scheme

First of all, the client must apply for a commercial mortgage. This can be done either online on the VTB website or at a bank branch. The application is processed within a week. Credit analysts review the application in more detail, add it to comparisons with others, and then make a decision. After this, a VTB manager contacts the borrower to inform about the decision. If the answer is yes, then the borrower must fulfill the following VTB conditions:

• Provide documents confirming your activities, as well as other papers that are included in the standard package.
• Confirm tax burden. At this stage, the borrower must prove his financial solvency to the bank. Additional collateral may also be provided. Perhaps he will persuade the bank to issue a larger amount or reduce the rate.
• Transfer a property from a housing stock, a rental agreement, or a housing and savings cooperative. The entrepreneur does all this on his own.
• Find a guarantor. This is a requirement for a business mortgage. The guarantor can be either an individual or a legal entity.

After all the above points have been settled, the mortgage agreement will be signed. Both the borrower and the VTB representative must sign. Funds for the purchase of real estate will be transferred to the account according to an individual schedule. Next, you can proceed to purchasing the property.

Registration procedure

You can apply for a loan and receive a preliminary decision not only at a bank branch, but also using an online application. The latter can be sent from the official website of the financial institution. It consists of the following fields:

• amount of credit;
• the city where you plan to apply for a loan, you also need to select a bank office there;
• TIN of the legal entity;
• Full name of the contact person;
• mobile phone and email.

After processing the information received, a VTB employee will contact the potential client and discuss all the main terms of cooperation, talk about the lending parameters and make a preliminary calculation of payments to assess his solvency. If the potential client’s income is sufficient to service the loan, and he meets all the bank’s criteria, then he can begin collecting documents for verification.

Based on the documents received, the bank makes a final decision and notifies the client about it. If the terms of the loan suit him, then he needs to open a current account and agree on the date and time of signing the loan agreement and other documents.

Documentation

To obtain a business mortgage from a bank, you need to collect a large package of documents. If a loan is issued by an entrepreneur, he must provide the following copies and originals for verification:

• Russian passport;
• SNILS;
• military ID;
• TIN;
• bank statements;
• documents confirming the presence of real estate and movable property in the property.

Additionally, you must attach documents confirming your business activity. These include:

• individual entrepreneur registration certificate;
• certificate of income of the individual entrepreneur;
• certificate of tax arrears;
• extract on registered activities;
• activity license.

If a VTB mortgage is issued to a legal entity, the standard package of documents includes:

• data on the turnover of goods for six months;
• profit and loss statement of the company;
• bank statement about the company's accounts;
• OS data;
• debt report.

Who can receive the necessary documents

Legal entities that meet the following criteria can apply for lending or leasing:

1. They are solvent - the level of income is sufficient to service the loan and carry out current activities.
2. At least 1 year of business experience.
3. Registered and operating in the region where the bank has branches.
4. Have an open bank account. If the borrower is a new client, then you should expect that he will be required to open a current account with VTB and transfer part or all of the turnover to the bank.

Bank lending to individuals is carried out if they:

• age from 21 to 70 years (at the time of contract closure);
• cumulative experience of at least 1 year, and in the last position for at least six months;
• place of residence and registration is in the region where the bank branches are located;
• sufficient level of solvency.

List of documents that must be provided for lending or leasing for companies and firms:

• the latest edition of the constituent documents;
• extract from the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs;
• financial statements for the last year (quarterly);
• orders for the appointment of management, as well as documents confirming the identity of the director and chief accountant;
• state registration certificate;
• decision of the meeting of shareholders on the creation of a legal entity;
• document on the creation of a sole management body;
• a certificate confirming registration with the tax authorities;
• Russian passport and TIN (for individual entrepreneurs).

To consider a loan application, private clients must bring to the bank:

• passport;
• a certificate of income for six months and a copy of the work book with employer marks or an employment contract.

Under the “Optimal Solution” leasing lending program, individuals are required to provide only:

• Russian passport;
• certificate of pension insurance;
• TIN.

If the latter document is not available, then you can bring a foreign passport or driver’s license instead.

In addition to documents about himself, a potential client must submit documents about commercial real estate:

• extract from the Unified State Register;
• a document confirming ownership (sale and purchase agreement, gift, exchange, court decision, etc.);
• technical passport with a detailed description of the structure;
• building plan, as well as other documents necessary for assessing the property and registering it for a mortgage.

Main advantages and disadvantages

Commercial mortgages have both positive and negative sides. Therefore, before applying for it, it is necessary to study each of the parties in detail and make sure that the loan is appropriate.

A commercial mortgage is the solution for many business owners. It takes several months to complete, and the maximum rate on the VTB website is 16.5%. However, the exact loan amount is not indicated; it must be discussed with the bank. However, VTB will only give approval for liquid objects, so it will be very difficult to take out a mortgage for a warehouse or other similar premises.

What do banks want when applying for a mortgage on commercial real estate?

Purchasing commercial real estate requires large financial expenditures. Not every credit institution will issue a loan of this size to one person. Therefore, the main players here are large banks. Lenders with less funds do not abandon mortgage programs altogether, but limit themselves to more modest amounts.

Conditions under which the bank agrees to give money:

• The maximum loan term is from 10 to 15 years.

• 15-20% is the interest rate. Its size directly depends on the time for which the money is given. The higher it is, the higher the interest rate on the loan. Therefore, it is more profitable to take out a short-term loan, expand production and, if you need money again, take more.

• Making a down payment, which can reach 20–40% of the amount required for the purchase. Some financial institutions agree to waive this rule. The size of the loan received under such conditions will be reduced. You can offer the bank your own property as collateral instead of a down payment, which will require additional paperwork. Not every bank will want to do this. Increased demand for commercial mortgages allows lenders to select clients at their discretion.

• Banks will refuse a loan to start-up entrepreneurs if, upon inspection, it turns out that the company has been operating for less than a year. In addition, the company applying for the loan must prove its profitability. No one will invest in an unprofitable business.

There is a way to purchase commercial real estate significantly below market price. To do this, you need to find organizations that have declared themselves bankrupt and are selling off property to cover wages and other debts. The register of such companies is published on the Internet on federal websites.

For the normal operation of the company, real estate purchased with credit money is not enough. People work in production facilities. Their work must be paid. To produce a product you need raw materials and technological equipment.

When there is nothing other than money borrowed from the bank to purchase commercial real estate, and there is not enough money to run a business, all that remains is to look for a business partner. He will provide a joint venture for everyone else.