A mortgage loan is a secured loan where your property acts as collateral, providing you with the financial support you need. Bajaj Finance offers various types of mortgage loans to cater to diverse requirements such as home renovations, business expansion, and more. These loan options include simple mortgage, usufructuary mortgage, English mortgage, mortgage by conditional sale, mortgage by title deed deposit, and anomalous mortgage. Each type has its unique features and benefits, allowing you to choose the one that best aligns with your financial goals. Understanding these mortgage options is crucial for making an informed decision.

What are the types of mortgage loan?

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A mortgage loan is a secured loan where a borrower pledges their property as collateral to secure funds. It has become a popular financing option due to its sizable loan amounts, relatively low interest rates, and flexible repayment tenures. In India, there are several types of mortgage loans, each catering to different needs and circumstances. These include the simple mortgage, usufructuary mortgage, English mortgage, mortgage by conditional sale, mortgage by title deed deposit, and anomalous mortgages. Each type offers distinct features and terms, and understanding these types of mortgage loans can help borrowers choose the best option based on their requirements.

Types of mortgage loan

Mortgage loans come in various types, each tailored to meet different financial needs and preferences:

Mortgage type

Type of property

Category

Simple Mortgage

Residential or Commercial Property

Secured Loan

Mortgage by Conditional Sale

Residential or Commercial Property

Secured Loan

English Mortgage

Residential or Commercial Property

Secured Loan

Fixed-Rate Mortgage

Residential Property

Home Loan

Usufructuary Mortgage

Residential or Commercial Property

Secured Loan

Anomalous Mortgage

Residential or Commercial Property

Secured Loan

Reverse Mortgage

Residential Property

Loan Against Property


Pro tip: Did you know you can unlock the hidden potential of your property by opting for a loan against property? Whether for personal or business needs, it is a smart way to leverage your real estate for high-value financing. By pledging the value of your own property, you can access large funds —all with flexible repayment options and competitive interest rates. Explore our offers on loan against property today!

How Does a Mortgage Work?

A mortgage is a long-term loan used to buy a home, with the property serving as collateral. The borrower repays the loan in installments, typically monthly, which include principal (the loan amount) and interest. Mortgage terms usually last 15 or 30 years, with interest rates being either fixed or adjustable. If the borrower fails to repay the loan, the lender can foreclose on the property. Key factors like credit score, income, and debt-to-income ratio impact the loan approval process. Over time, as the mortgage is paid down, the borrower builds equity in the home.

You don’t have to sell your home to access its value. With Bajaj Finserv Loan Against Property, you can continue enjoying ownership while utilising funds for needs like education, business expansion, or medical expenses. This secured loan allows you to access funds while retaining ownership, making it an excellent option for business expansion, education, medical expenses, or debt consolidation. With lower interest rates and flexible repayment terms, loan against property provides a smart way to unlock your property's financial potential. Check your loan against property eligibility in seconds.

Also Read: Types of loan against property

Mortgage Loan Complete Process

Pre-Qualification

Estimate loan eligibility based on basic financial details.

Pre-Approval

Lender verifies income, credit, and offers a conditional loan.

Property Search

Find a home within the approved loan range.

Loan Application

Submit financial documents and apply for a mortgage.

Appraisal & Underwriting

Lender assesses the home’s value and verifies information.

Loan Approval

Final approval based on all checks and documentation.

Closing

Sign paperwork, pay closing costs, and transfer ownership.

Monthly Payments

Start making mortgage payments to repay the loan over the agreed term.

Facing unexpected financial needs? Your property can be more than just a place to live or work—it can also serve as a valuable financial resource. By opting for a loan against property, you can unlock the equity tied up in your real estate without selling it. Whether you are dealing with medical emergencies, funding your child's education, expanding your business, or managing debt consolidation, a loan against property offers a practical and cost-effective solution. Check your loan against property eligibility in seconds.

How to compare mortgage?

When evaluating different mortgage loan options, consider the following factors to make an informed decision:

  1. Interest rates
    Compare the interest rates offered by different lenders. A lower rate can significantly reduce your overall loan cost.
  2. Loan tenure
    Assess the repayment period offered. A longer tenure can reduce your EMIs but may result in higher total interest payments.
  3. Processing fees and other charges
    Review the processing fees, administrative charges, and prepayment or foreclosure fees. These can vary significantly between lenders.
  4. Loan-to-Value (LTV) ratio
    Check the LTV ratio, which determines the loan amount relative to the property value. A higher LTV means you can borrow more.
  5. Flexibility in repayment
    Look for loans with flexible repayment options, such as part-prepayment or EMI moratoriums, to ease financial stress.
  6. Eligibility criteria
    Ensure you meet the eligibility criteria for the mortgage, which may vary based on your income, credit score, and property type.
  7. Customer service and support
    Choose a lender with good customer service to ensure a smooth application and repayment experience.

Mortgage loans by Bajaj Finance

Bajaj Finserv offers mortgage loans at competitive mortgage loan interest rates to finance your big-ticket purchases. These loans combine the best features of the various mortgage types listed above and include:

  • Home loan
  • Loan against commercial property
  • Loan against residential property
  • Land purchase loan
  • Loan to purchase another commercial property
  • Lease rental discounting

Check our mortgage loan eligibility requirements carefully before applying. Also, know the Mortgage Loan interest rates to plan your finances accordingly. Avail them by following simple Mortgage Loan process.

Unlocking financial potential with loan against property

Now that you well-versed with property act, let us explore your funding options to meet your financial needs. Whether you own a residential or a commercial property, Bajaj Finserv Loan Against Property allows you to leverage your real estate for various financial needs, including business expansion, wedding, education financing, or medical emergencies. Enjoy competitive interest rates, flexible repayment plans, quick loan approval, and easy eligibility criteria with Bajaj Finance

Benefits of Bajaj Finserv Loan Against Property

  1. Competitive interest rates: Bajaj Finance offers attractive rates, making borrowing affordable.
  2. Fast approval: Experience swift loan approval and disbursal to access funds during urgent situations.
  3. Easy eligibility: The qualification process is simple, making loan access hassle-free.

Did you know you may be eligible for our loan against property offers with low-interest rates? Check your offer in just 2 clicks!

Related mortgage terms

Equitable Mortgage

Usufructuary Mortgage

Construction Mortgage

Mortgage Lenders

Simple Mortgage

Registered Mortgage

Mortgage Underwriter

Anomalous Mortgage

Mortgage Redemption

Mortgage Bond

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Mortgage FAQs

What are the two main types of mortgages?

The two main types of mortgage loans are:

  • Simple mortgage: The lender has the right to sell the mortgaged property if there is a payment default.
  • Usufructuary mortgage: The possession is transferred to the lender. The lender can receive rent or profit from it without putting a personal liability on the borrower.
Under which type of mortgage loan, does the lender give money to the borrower in the form of instalments?

Simple mortgage: In this type of mortgage, the borrower repays the loan amount in EMIs over a mutually decide tenure.

Can you explain what a bridge loan is in the context of mortgages?

A bridge loan is a short-term loan used to "bridge" the gap between the purchase of a new property and the sale of an existing one, often with higher interest rates.

Are there specific mortgage loans for first-time homebuyers?

Yes, there are specialized mortgage loans for first-time homebuyers. These typically offer lower interest rates, reduced down payments, and more flexible qualification criteria to make homeownership more accessible.

Can you explain what a negative amortisation mortgage is?

A negative amortisation mortgage occurs when monthly payments are lower than the interest due, causing the loan balance to increase over time. This can result in owing more than the original loan amount.

Can you explain what a permanent mortgage is in construction financing?

A permanent mortgage in construction financing refers to a long-term loan that replaces a construction loan once the project is completed, providing permanent financing for the newly built property.

Can I prepay any type of mortgage loan without penalty?

Prepayment penalties vary by lender and loan type. Some mortgage loans allow prepayment without penalties, while others may charge fees. Check your loan agreement for details.

What documents are needed for each type of mortgage loan?

Documents include identity proof, address proof, income proof, property documents, and bank statements. Requirements may vary based on the loan type, lender, and borrower’s financial profile.

Can I use a mortgage loan to buy land or plot?

Yes, many lenders offer mortgage loans specifically for purchasing land or plots. Loan terms, eligibility, and interest rates depend on the lender’s policies and property type.

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