Hometrust manager Mamta Bhatia said, "We did an extensive market research on the viability of a commercial loan scheme and the feedback we got was very positive." Commercial loans are loans restricted to financing of commercial property.

For availing of the loan, it is mandatory that the professionals would have to be in practice for at least two years and should have filed income-tax returns giving evidence of professional activity or practice.

The minimum tenure of the loan is a year and the maximum five years. The minimum quantum of loans that can be availed of is Rs 1 lakh and the maximum Rs 10 lakh.

The margin money is 25 per cent, while the interest rate would be pegged at 18.5 per cent. The processing fee would betwo per cent which is a one-time non-refundable fee. There is also an administrative fee which is one per cent one time and also non-refundable.

The security required for the loan is an equitable mortgage of the property, a sound guarantor and collaterals like the LIC or the National Savings Certificates.

The repayment structure of the loan is by equated monthly instalments (EMIs) comprising both the principal amount and interest. Post-dated cheques would have to be for the full tenure of the loans.

The EMI on a loan of Rs 10,000 for varying tenures would be as follows: EMI would be Rs 988 for one year, Rs 536 for two years, Rs 387 for three years, Rs 313 for four years and Rs 270 for five years.

While applying for the loan, the borrower would have to submit a sanctioned building plan, agreement for sale, copy of title deeds, title investigations report for the last 15 years, guarantor's form, salary certificate and employer's certificate or a copy of income-tax returns, among other things.

Theborrower is required to accept the loan within 30 days by paying an administrative fee, which is about one per cent of the loan amount.

Hometrust, with a paid-up capital of Rs 10 crore, is one of 26 housing finance companies in India which have been approved by the National Housing Bank for the purpose of refinance.

It has also received recognition from the Central Board of Direct Taxes enabling its borrowers to avail of the relevant tax concession. Hometrust has also developed specially designed schemes for working couples, businessmen and persons above 50 years of age in pensionable jobs.