What are the 6 mortgage types in India?
Mortgage loans in India are available under 6 different mortgage types. Under Section 58(a) of the Transfer of Property Act, 1882, mortgage’s definition stands as a specific immovable property’s transfer of ownership to secure payment of funds against it, extended as a mortgage loan in the form of credit.
6 Types of Mortgages in India:
- Simple Mortgage
Here, the borrower simply mortgages the immovable asset personally to avail a loan. The lender has the right to sell mortgaged property in case of repayment failure.
- Usufructuary Mortgage
In this, the property’s possession is transferred to the lender who can receive rents or profits from it without creating any personal liability on the borrower.
- English Mortgage
It establishes personal liability on the borrower, and the mortgaged property is transferred to the lender on the condition that successful loan repayment will lead to recovery.
- Mortgage By Conditional Sale
Here, a mortgagor sells his/her property with terms that it becomes effective if he/she defaults in repayment but turns void on successful repayment.
- Mortgage By Title Deed Deposit
The borrower deposits the title deed of the property to be mortgaged with the lender against the loan to avail.
- Anomalous Mortgage
A mortgage that doesn’t come under any of the above mortgage types is an anomalous mortgage.
Bajaj Finserv offers Mortgage Loan at suitable mortgage interest rates to finance your big ticket purchases.
Also Read: Types of Loan Against Property
These loans are a mix of the above types of mortgage to provide you with the best possible features. Avail them by following simple Mortgage Loan process.
Various Different Mortgage Loan are:
- Home Loan
- Loan Against Commercial Property
- Loan Against Residential Property
- Land Purchase Loan
- Loan to purchase another commercial property
- Lease Rental Discounting
Check Mortgage Loan eligibility requirements carefully before applying. Also, know the Mortgage Loan interest rates to plan your finances accordingly.
Additional Read: 3 Types of Loans Against Property you should Know About