Mortgage loans are outstanding for those who want to buy a home as they offer a high sum based on the property pledged as collateral at lower interest rates than other types of loans. The documents for the immovable property need to be deposited to the lender until the loan period.

Additionally, the tenure of repayment is If you are looking to buy a home, choosing the right type of mortgage loan is very important. There are six types of mortgage loans in India. 

Let’s see them

Types of Mortgage Loans in India

• Loan Against Property (LAP)

Lap loans are offered for both commercial and residential properties. Borrowers have to mortgage their property to get funds from lending institutions. One can avail of this type of loan for any personal needs.

•  Commercial Purchase

People in business and entrepreneurs popularly take these loans to buy only properties like shops, office space, commercial complexes etc.

• Lease Rental Discounting

You can take mortgage loans against learned properties where monthly rental is converted into EMI for the loan. 

•  Second Mortgage Loan

Banks and NBFC’s give loans for properties that are already pledged under the mortgage loan. The borrower can repeat this additional loan EMI with the first loan EMI he had availed.

• Reverse Mortgage

Loans that are provided to senior citizens as a monthly salary after which the lender will sell the property pledged and waive the total EMI amount.

• Home Loan

Most commonly used loans, called home loans, are used by customers to renovate, rebuild or buy an under-construction property. You cannot use this loan for other personal purposes. These loans should be used only for procuring a house.

Fullerton India offers loans against property at the lowest property loan interest rate starting from 9%. With Fullerton India mortgage loans, you can avail up to INR 12.5 Cr on residential or commercial properties. Apply now!

Additional Read: What are the Key Benefits of a Mortgage Loan?