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.
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:
Name of the Partner
Interest Rate (p.a.)
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.
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.
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.
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
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. 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.
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Different lenders offer various tenures for mortgage loans, with the maximum tenure extending to 15 years.
When you opt for a mortgage loan, your credit score will temporarily reduce but will increase again based on your repayment ability and record.
Salaried and self-employed individuals, NRIs, and Indian citizens, who meet the specific bank’s eligibility criteria, can apply for a mortgage loan.
You can do so by way of post-dated cheques or through instructions such as NACH.
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.
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.
While home loans provide you funding for purchasing or upgrading your house, a mortgage allows you to access funds against an immovable property.
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.