Commercial & Industrial Mortgage
Noor Business is offering Commercial and industrial mortgage financing under the Islamic financing principals of Ijarah , Murabaha and Istisna for the purchase of industrial, commercial & residential property by the customers The finance can be used for the purchase of the premises (including the finance of the construction of the premises), the provision of additional capital expenditure on existing premises to increase capacity or the refinancing of an existing finance.
This product is targeted towards small & middle enterprises, which would require mortgage finance for purchase/refinance of commercial, industrial premises for their business requirement. Our target customers would also include those entities / individuals who would purchase residential properties (in bulk) for their employee accommodation or even for rental yields Within this market the product is particularly appropriate to manufacturers, engineering services companies and traders.
Rent Assignment
Rent on residential, commercial & industrial properties can be assigned to NIB. Such assignment could be considered as (1) collateral & (2) clubbed towards income estimation.
Additional Income
- Clubbing of Income through Secondary Business and / or other additional sources of income must be at least for 1 Year prior to income consideration. Proof of ownership and time must have documented evidence.
- 100% rental income to consider for registered Tenancy contract.
- 50% rental income to be considered for non-registered Tenancy Contract.
The maximum finance amount available of the open market property valuation (finance to value ratio) on the underlying property should be varied according to market, but must not exceed the following parameters: -
- 90% of the property valuation for standard freehold commercial/industrial property
- 80% for standard leasehold property
- 60%-80% for standard leasehold property (Non Standard Property)
Min Length of Business |
1 year |
| Min Annual Sales Turnover | AED 1,800,000/- |
| Max Annual Sales Turnover | AED 25,000,000/- |
| Tenor | Maximum 10 years for freehold & leasehold properties. |
Max. Age of Property: (On Finance maturity) |
At the maturity of the finance the property age should not be > 50 years. |
Property Valuation |
Evaluation of the property will be done on all properties through approved property evaluators. |
Joint borrowers |
Partners, Spouse, relatives working together. |
