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A mortgage loan allows you to access funds by pledging an immovable asset as collateral. This can include your land plot, house, or commercial property. 

Generally, the mortgage interest rate levied on mortgage loans starts from 8% per annum, and the repayment tenures can range up to 15 years. Moreover, you can avail a sum equivalent to as much as 60% of the property’s registered value. 

Once you have paid the loan amount along with interest, the lender transfers back the title of your immovable asset. Read on to know more about mortgage loans and the prevailing mortgage interest rates different lenders offer.

Mortgage Loan Interest Rates

Various banks and non-banking institutions (NBFCs) offer mortgage loans at competitive interest rates. However, mortgage interest rates vary depending on the lender you choose. 

Here is a complete list of mortgage rates offered by top lending partners of Bajaj Markets:

Disclaimer: The current interest rates can vary on the basis of your lock-in period, loan type, credit score, purpose, and the loan-to-value ratio.

Different Types of Mortgage Loans in India

There are six different types 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 (EMIs).

  • 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 pledged as collateral. The monthly rent 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 same property. In this case, you will have to repay both EMIs simultaneously.

  • Reverse Mortgage: It is meant for senior citizens who already possess property and can mortgage the same with a bank. When pledging this property as collateral, they receive a fixed sum of money every month.

  • Home Loan: Also known as a house loan, it is often used to purchase an under-construction property – for both new and for-sale properties.

Things to Consider Before Applying for a Mortgage Loan

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

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

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

  • Loan Amount: In the case of a mortgage loan, the loan amount sanctioned varies based on your property's registered price. You can avail a loan between 40% and 70% of the same.

  • Eligibility Criteria: Different lenders have different requirements of eligibility for mortgage loans. Make sure to check mortgage eligibility before applying for one.

  • Charges and Fees: When you apply for a mortgage loan, a range of fees are levied. These include documentation fees, processing fees, application fees, overdue loan fees, etc. Make sure you assess all charges before applying for a loan.

What is the Mortgage Loan Process?

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

  • Step 1: Submit the documents needed for the mortgage 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 step mentioned above is completed, 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

Conclusion

In conclusion, if you wish to access funds quickly and at lower interest rates, a mortgage loan is your best option. To avail the loan, you just need to pledge your immovable asset (residential or commercial property) as collateral.

With these loans, you can enjoy low mortgage interest rates. Moreover, you get the title of your property back when you pay back the loan amount and interest. 

You can also find loans against property balance transfer options at Bajaj Markets Website.. This helps you transfer your existing loan to a lender offering lower interest rates. Furthermore, you can compute your monthly instalments using a LAP balance transfer EMI calculator before zeroing in on a lender.

Disclaimer

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on Mortgage Loan

What is a mortgage loan tenure?

Different lenders offer various tenures for mortgage loans, with the maximum tenure extending to 15 years.

How does your mortgage impact your credit score?

When you opt for a mortgage loan, your credit score will temporarily reduce but will increase 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 specific 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.

Who else can be a co-applicant for a mortgage loan?

Most banks have laid out policies regarding who can be the co-applicant when you avail a mortgage loan. Most banks and NBFCs allow you to choose your family member as a co-applicant.

Is a home loan the same as a mortgage?

While home loans provide you funding for purchasing or upgrading your house, a mortgage allows you to access funds against an immovable property.

What is a simple example of a mortgage loan?

Suppose you have a property with a market value of ₹1 Crore. A mortgage loan can help you access a loan of up to ₹70 Lakhs if you put it as collateral. 

Assume the loan repayment tenure is 15 years. So, when you have paid the loan amount and interest in full, you can have the title of that property back.

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