Mortgage Loan

Apply for a Mortgage Loan at affordable interest rate

✓ Loan Against Property from ₹2 Lakhs to ₹15 Cr ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.75%

When we speak of a mortgage loan, we refer to a loan that you secure by means of offering your property as collateral. Generally, the interest rate levied on mortgage loans starts from 8% per annum, and you can avail of a sum equivalent to as much as 60% of the property’s registered value. This loan can be obtained at flexible repayment tenures, ranging up to 15 years.

Mortgage Loan Interest Rates

When it comes to mortgage loan interest rates, different banking institutions offer the same at differing rates. The complete list of mortgage loan rates is as elucidated below:

Lending Institution

Rate of Interest per annum

Amount of Loan Sanctioned

Tenure of the Loan

ICICI Bank

9.15% and onwards

A maximum of Rs. 5 Crores

Upto a period of 15 years

Bajaj Housing Finance Ltd

9.00% and onwards  

A maximum of Rs. 5 Crores

Upto a period of 25 years

PNB Housing Finance

8.25% and onwards

A maximum of Rs. 5 Crores

Upto a period of 20 years

LIC Housing Finance

8.35% and onwards

A maximum of Rs. 15 Crores

Upto a period of 30 years

Union Bank of India

9.80% and onwards

A maximum of Rs. 10 Crores

Upto a period of 12 years

HDFC Bank

8.75% and onwards

Ranging up to 60% of the property’s registered value

Upto a period of 15 years

Axis Bank

10.50% and onwards

A maximum of Rs. 5 Crores

Upto a period of 20 years

HSBC Bank

8.80% and onwards

A maximum of Rs. 10 Crores

Upto a period of 15 years

State Bank of India

1.60%-2.50% above the MCLR rate

A maximum of Rs. 7.5 Crores

Upto a period of 15 years

Citi Bank

8.15% and onwards

A maximum of Rs. 5 Crores

Upto a period of 15 years

IDFC Bank

A maximum of 11.80%

A maximum of Rs. 5 Crores

Upto a period of 15 years

IDBI Bank

10.20% and onwards

A maximum of Rs. 10 Crores

Upto a period of 15 years

Vijaya Bank

Contact the bank for further details on this aspect

A maximum of Rs. 5 Crores

Upto a period of 10 years

Federal Bank

10.10% and onwards

A maximum of Rs. 5 Crores

Upto a period of 15 years

Oriental Bank of Commerce

10.95% and onwards

A maximum of Rs. 10 Crores

Upto a period of 10 years

Corporation Bank

10.85% and onwards

A maximum of Rs. 5 Crores

Upto a period of 10 years

Karur Vysya Bank

10% and onwards

A maximum of Rs. 3 Crores

Upto a period of 100 months

Disclaimer: Some of the lending institutions mentioned in the list above are not partners of Bajaj MARKETS. Additionally, you must keep in mind that the Current interest rates shown will vary on the basis of your lock-in period, loan type, credit score, purpose and loan to value ratio.

Features and Benefits of Mortgage Loan

The features of a mortgage loan are as listed below

  • You can secure the loan against both commercial and residential properties.

  • You can secure the loan irrespective of your profession – whether you are a self-employed or salaried individual.

  • The documentation involved is minimal, making the application process quick and hassle-free.

  • You will receive as much as 60% of the property’s registered value as the loan amount.

  • You can avail of a mortgage loan to meet both business and personal requirements.

  • The maximum interest rate levied on a mortgage loan is usually in and around 11% - lesser than that levied on any other loan.

  • You can repay your loan through easy monthly instalments.

Types of Mortgage Loans

There exist six different kinds of mortgage loans in India:

  • Loan Against Property: These loans are generally offered against commercial and residential property as collateral and can be repaid via easy monthly instalments.

  • Commercial Purchase: Generally opted for by businessmen, these loans are offered against commercial spaces (shops, offices, and so on) as collateral.

  • Lease Rental Discounting: This loan is offered against leased spaces being offered as collateral. The rent per month is packaged as an EMI, and the loan is disbursed accordingly.

  • Second Mortgage Loan: If you have already purchased a property via a loan, you can opt for an additional loan on the very same property. In this case, you will have to repay both EMIs simultaneously.

  • Reverse Mortgage: Meant for senior citizens, those already in possession of property can mortgage the same with a bank, in exchange for which they receive a fixed sum of money every month.

  • Home Loan: The most common form of loan, this is often opted for to purchase an under-construction property, land of your own – for both new and for-sale properties.

Eligibility for Mortgage Loan

You must meet the following eligibility criteria in order to be approved for a mortgage loan:

  • You must be at least 21 years of age

  • You must possess proof of valuation of your property offered as collateral

  • You must possess valid documentation pertaining to income proof

  • You must list out current liabilities

  • You must clearly mention the number of dependants

  • You must transparently state your gross annual and monthly income

Documents Required for Mortgage Loan

To secure a mortgage loan, you must keep the following documents handy:

  • The application form, duly filled out

  • Passport size photographs

  • Identity proof – PAN card, AADHAAR card, Voter ID card, Passport, Driving Licence

  • Address proof – electricity bill, Driving Licence, rental agreement, ration card, AADHAR card

  • Copies of your latest salary slips

  • Copy of your Form 16, issued by your employer

  • Copies of your bank statements

  • Cheque pertaining to the processing fee

Things to Consider Before Applying for Mortgage Loan

Before you apply for a mortgage loan, keep in mind the following factors:

  • Mortgage Loan Interest Rates: The interest rate typically varies between 8% and 11% per annum – with the option of choosing a fixed rate or floating rate loan.

  • Tenure: The maximum tenure on a mortgage loan is 15 years and varies from lender to lender.

  • Loan Amount: In the case of a mortgage loan, the loan amount sanctioned varies based on your property's registered price and between 40% and 60% of the same.

  • Eligibility Criteria: Different lenders have different eligibility criteria. Make sure to check for the same before applying for a mortgage loan.

  • Charges and Fees: When you apply for a mortgage loan, a range of fees are levied, including documentation fees, processing fees, application fees, loan overdue fees, and so on.

What is the Mortgage Loan Process?

To apply for a mortgage loan, follow the steps listed below:

  • Step 1: Submit the requisite documents and application form to your bank.

  • Step 2: The bank will undertake a credit appraisal.

  • Step 3: They will then proceed to verify and authenticate your personal information.

  • Step 4: Once the above-mentioned step is done, you will receive a letter sanctioning your application at your registered address.

  • Step 5: Once your request for disbursal is received, your property-related documents will be collected.

  • Step 6: Your property-related documents will be examined.

  • Step 7: Once verified and approved, you will receive your mortgage loan.

FAQs on Mortgage loan

  • ✔️What is a mortgage loan?

    A mortgage loan is a loan that you secure by means of offering your property as collateral

  • ✔️ What is a mortgage loan tenure?

    Different lenders offer differing tenures, with the maximum extending up to 15 years.

  • ✔️How does your mortgage impact your Credit Score?

    When you opt for a mortgage loan, your Credit Score will dip temporarily, but will rise again based on your repayment ability and record.

  • ✔️Who can apply for a mortgage loan?

    Salaried and self-employed individuals, NRIs, and Indian citizens, who meet the said bank’s eligibility criteria, can apply for a mortgage loan.

  • ✔️How do I clear the monthly repayments for my mortgage loan?

    You can do so by way of post-dated cheques, or through instructions such as NACH.

  • ✔️Can I foreclose my mortgage loan?

    Yes, you can do so, but you must ensure that you clear the loan amount in its entirety before doing so. Banks also charge pre-closure fees for doing the same.