Different Types Of Mortgage Loans In India For Which You Can Apply

February 02, 2018

Different Types Of Mortgage Loans In India For Which You Can Apply

A mortgage loan is a type of loan where a property or real estate is used as collateral to borrow money. The borrower enters into an agreement with the bank wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full. Mortgage Loans in India are one of the most popular forms of loans applicable to real estate mainly for those interested in buying a property.

However; consumer can borrow mortgage loans for various financial reasons such as buying machinery, expanding business, to stock up inventory etc.

Mortgage loans in India

image source

The borrowers for mortgage loan in India can be from different categories –  individuals or business houses. The mortgage loans in India borrowers requires keeping a piece of property, flat or land while the latter includes commercial spaces and business premises as a collateral.

Understand How Mortgage Loans In India Work?

mortgage loans in India


Understand the important aspects of mortgage loans in India offered to the consumers and its working:

  • The installments or EMI of mortgage loans in India comprises of the payment of the principal amount, loan against property interest as applicable, other charges of insurance, and taxes as applicable.
  • The loan against property loan may look very appealing; from where huge amount of funds and capital can be raised. However, the loan applicant must be cautious before applying understanding the repayment capacity.
  • The proper detail and schedule of property purchase should be clarified to the bank as per the amortization schedule.
  • The foreclosure charges are done by the RBI. Hence; before seeking mortgage loans in India, it is important to read the loan offer document carefully before availing the loan or signing any document.
  • The overall costing of the project also includes the 15% cost bearing by the borrower, the payment being initial.

Different Types Of Loan Against Property In India

Below mentioned are the different types of loan against property available each with the brief explaining:

Simple Mortgage

It is one type of mortgage loan; categorized under loan against property. Here the bank – (term used is Mortgagee) does not require acquiring the ownership of the property. However, he/she has the authority of mortgaging the land in case the loan availer fails to repay the loan.

English Mortgage

In this type of mortgage loans, the loan amount has to be repaid at a mentioned date which is agreed by the bank as well as the mortgagor.  The loan availer should repay the loan by a certain date and if failed; the bank or the lender holds all the right to sell away the property.

Usufructuary Mortgage

In this loan type, the borrower passes on the possession of property to the mortgagee (bank or lender). If the property is profitable, the monetary gains are passed on to the mortgagee (bank or lender) till the loan is repaid.

Mortgage by Deposit of Title Deeds

A method of pledging real property as security for a loan, by placing the title-deeds of the land in the keeping of the lender as pledgee. 

Mortgage by Conditional Sale

In this type of mortgage loans, the loan applicant (the borrower) purposely sells the collateral property on stake in case the mortgage amount stays unpaid by the mutually decided date, or the sale of mortgage does not hold any value, or the mortgagee re-assigns the property to the mortgagor.

Reverse Mortgage

As the name suggest, the proceedings of the loan happen the opposite or in the reverse mode. Usually what happens in normal loans, the borrower pays monthly installments. However, in a loan with a reverse mortgage type, the lender pays monthly amounts of mortgage money to the mortgagor. 

In General  – The Process 

Applying for the mortgage loans in India can be a little tough; but if done it with right documents and suggested process it is hassle free. Carefully read the terms and condition weighing the pros and cons of the bank that you have shortlisted.

As the first step for choosing loan against property, the applicant needs to approach a suitable bank with the required documentation. Once the verification of the submitted documents is done the loan gets approved. The loan approval involves good amount of time.  It requires following certain process such as appraisal of credit by applicant’s bank, collection of the documents against the property by the bank, legal verification and etc.


February 02, 2018

Connect with Service Provider

Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities

Latest Posts

Top 7 Whiteboard Explainer Video Tips That Talks About Your Business

December 01, 2018

Whiteboard animation videos !! The video style has been trending for obvious reasons. The whiteboard animated videos are known for boosting

Read More  
Facebook Ads | Top 6 Reasons Why Your FB Ads Are Not Converting

November 29, 2018

There were only 3 million active users on Facebook 4 years before; and as of 2018 there are more than

Read More  
Top Facebook Boost Post Tips - Get Results and Generate More Leads

November 13, 2018

Majority of the online marketers who wish to advertise on Facebook and get more leads using Facebook boost posts will

Read More  
Why Should Your Business Hire Explainer Video Company Instead Of Freelancers?

November 10, 2018

We all know the benefits that having a website can help you trigger brand awarenes; overhauling your public image virtually

Read More  
Animation Video Maker | Promote Your Brand With Our Corporate Videos

November 03, 2018

Whether you’re a beginner or already an established brand, SME Networks is an expert Animation Video Maker company that

Read More  
Facebook Ads | Top 7 Effective Tips To Write Facebook Ads That Convert

November 01, 2018

I’m constantly on Facebook, scrolling through my company feed reading the news and looking at pics…I’m not

Read More  

Latest Events

CLO Engage Summit

Date: 10 January, 2019 - 10 January, 2019

India Investment Conclave

Date: 11 January, 2019 - 11 January, 2019

11th Global Intellectual Property Convention

Date: 17 January, 2019 - 19 January, 2019

PanIIT Conclave 2019 Artificial Intelligence

Date: 18 January, 2019 - 19 January, 2019

Mobile And Digital Marketing Summit

Date: 27 November, 2018 - 27 November, 2018

Emerging HR Summit

Date: 18 December, 2018 - 19 December, 2018

PITS - Pharma IT Summit

Date: 28 November, 2018 - 28 November, 2018

World AI Show - AI, MI & Robotics

Date: 22 November, 2018 - 22 November, 2018


Date: 21 October, 2018 - 21 October, 2018

Decathlon India Run

Date: 14 October, 2018 - 14 October, 2018

10 thoughts on “Different Types Of Mortgage Loans In India For Which You Can Apply”

  1. Thanks for sharing. Really, I have read many blogs but I have don’t see any blogs understandable such as yours.
    In Hyderabad, one of my friends said that Finfree Enterprises offers best mortgage loans at low interest rates, I suggest Finfree Enterprises for everyone who are looking for mortgage loans in Hyderabad.

  2. Hey,
    The format and content of the article is very nice.
    Found it very nice. Information you shared on Mortgage Loans in India is very true.
    All the best!

  3. Hello Lady & Gentlemen, Are you in need of financial assistance? I’m Susan Benson. I’m a lender and also a financial consultant.

    Do you need a business loan, Personal loan, Mortgage loan or a loan to complete your project? if your answer is yes, I will recommend you should contact my firm. We render all kinds of loan services including long term and short term loans. For more info, write to us via Email: (sunshinefinancialgroupinc@gmail.com) or Message me directly on WhatsApp via: +447903159998 & receive a response in an instant.

    We are a comprehensive financial service company and we are committed to help you improve your long-term and short-term financial goals. We specialize in providing structured finance solutions to individuals and companies in the most effective and fastest way.

    Here are some reasons why you should contact us for a loan;
    * Convenience – You can Apply for a loan anytime, anywhere.
    * Flexible Amount – You decide how much you want to borrow.
    * Fast Direct Funding – Receive your loan within 24 hours after approval.  
    * Flexible interest rate of 3%.
    * High Approval Rates
    * Flexible Repayment – You Get The Chance To choose the Repayment Date, either weekly, monthly or yearly for a duration of 1-30 years.
    * Simple online application.
    * Personalized guidance and expertise.
    * No hidden Charges

    Don’t lose out on an opportunity due to lack of funds. Contact my company now, we can assist you with a loan because we have helped numerous individuals and organizations who have been facing financial difficulty all over the world

    For more information about our loan offer, kindly send us your loan request via:
    Email: sunshinefinancialgroupinc@gmail.com
    WhatsApp: +447903159998

    Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved.

  4. Are you searching for a very genuine loan at an affordable interest rate of 3% process and approved within 4 working days? Have you been turned down Constantly by your Banks and other financial institutions because of bad credit? Loans ranging from $5000 USD to $20, 000, 000 USD maximum LOANS for Developing business a competitive edge / business expansion. We are certified, trustworthy, reliable, efficient, Fast and dynamic for real estate and any kinds of business financing. Contact us for more details and information.
    Thanks & Regard
    Dr James Eric Finance Pvt Ltd
    (Whats App) 91-8929509036
    E-mail: financialserviceoffer876@gmail.com

Comments are closed.