Mortgage loans are becoming increasingly popular in India. A mortgage loan is a type of loan that is secured by property, usually a house. The borrower is required to give the lender a lien on the property, which means that if the borrower defaults on the loan, the lender has the right to take possession of the property. In return, the lender is willing to lend money to the borrower at a lower interest rate than other types of loans. In this article, we will discuss the different types of mortgage loans that you can get in India.

1. Home loans

Home loans are the most common type of mortgage loan in India. These loans can be used to purchase a new house, an apartment, or a piece of land. Home loans are typically long-term loans, with loan tenures ranging from 5 years to 30 years. The interest rates on home loans can vary depending on the lender, the loan amount, and the loan term. The interest rates on home loans in India typically range from 6.75% to 10%, depending on the lender.

2. Loan against property

A loan against property (LAP) is a types of mortgage loan that is secured by an existing property. The borrower can use the existing property as collateral to secure the loan. The loan amount that can be borrowed through this type of loan can typically range from 50% to 75% of the property value. The interest rates on LAP can be lower than other types of loans, as the lender has the property as collateral. The interest rates on LAP in India typically range from 8.5% to 12%, depending on the lender.

3. Mortgage loan for renovation/extension

A mortgage loan for renovation or extension is a type of loan that is used to make repairs or upgrades to an existing property. These loans can also be used to add additional rooms or living spaces to a property. The loan tenures for these types of loans can typically range from 5 years to 30 years. The interest rates on mortgage loans for renovation or extension in India typically range from 9% to 12%, depending on the lender.

4. Reverse mortgage loan

A reverse mortgage loan is a type of mortgage loan that is available to senior citizens in India. This type of loan allows senior citizens to access the equity in their homes without having to sell their homes. The loan amount that can be borrowed through this type of loan typically ranges from 60% to 75% of the property value. The loan repayment is typically made by the lender after the borrower passes away or the property is sold. The interest rates on reverse mortgage loans in India typically range from 11% to 12%, depending on the lender.

Read more: Comprehensive guide on how to take a loan against property in 2023

5. Plot loans

Plot loans are a type of mortgage loan that is used to purchase a piece of land. These loans can be used to purchase a residential, commercial, or agricultural plot. The loan tenures for plot loans can typically range from 5 years to 15 years. The interest rates on plot loans in India typically range from 8.5% to 11%, depending on the lender.

6. Construction loans

Construction loans are a type of mortgage loan that is used to construct a building on a piece of land. These loans can be used for residential, commercial, or industrial construction. The loan tenures for construction loans can typically range from 1 year to 3 years. The interest rates on construction loans in India typically range from 9% to 12%, depending on the lender.

7. Top-up loans

Top-up loans are a type of mortgage loan that is available to borrowers who have an existing mortgage loan. These loans allow borrowers to borrow additional funds on top of their existing mortgage loan. The loan amount that can be borrowed through this type of loan typically depends on the borrower’s credit score, income, and the equity in the property. The interest rates on top-up loans in India typically range from 9% to 14%, depending on the lender.

Conclusion-

In conclusion, get a mortgage loan is a great way to finance the purchase of a property in India. The interest rates on mortgage loans in India can vary depending on the lender, the loan amount, and the loan term. If you are planning to take out a mortgage loan, it is important to compare interest rates from various lenders to find the best deal. Always make sure to read the terms and conditions of the loan carefully before signing any agreement.