In India, Mortgage Loans are a popular financing option for purchasing residential or commercial property. Several Mortgage Loans are available, catering to borrowers' different needs and preferences. Here are some common types available in India:

Home Loans

Home Loans are the most common type of Mortgage Loans used to purchase residential property. The Loan amount is typically up to 80-90% of the property's value, depending on the lender's policies and the borrower's eligibility. Repayment is usually done through Equated Monthly Instalments over a tenure of up to 30 years.

Loans Against Property

Loans Against Property are also known as Mortgage Loans. Borrowers pledge their existing residential or commercial property as collateral to get money for various purposes, such as business expansion, education, marriage, etc. The Loan amount is between 50% to 80% of the property's market value. Because of the collateral involved, the applicable interest rates are generally lower.

Plot Loans

Plot Loans are specifically designed for purchasing a plot or land. The Loan amount varies based on the plot's value and location. Compared to Home Loans, the Loan amount is typically lower, and the tenure is shorter.

Construction Loans

Construction Loans are provided for the construction of a house on a plot owned by the borrower. The Loan money is usually disbursed in instalments based on the stages of construction. The interest rates and eligibility criteria varies.

Reverse Mortgage Loans

This Loan is targeted at senior citizens who own a house. It allows them to convert part of their home equity into cash without selling the property. The Loan amount depends on factors like the borrower's age, the property's value, etc. Repayment is generally not required until the borrower moves out or passes away.

Top-Up Loans

Top-Up Loans are offered to existing Home Loan borrowers who require additional funds for purposes like home renovation, repairs, etc. You can avail of this Loan after a certain period of timely repayment of the original Home Loan.

NRI Home Loans

Non-resident Indians looking to purchase property in India for investment purposes can apply for an NRI Home Loan. The amount and eligibility criteria may differ from those for regular Home Loans for Indian residents.

Joint Home Loans

If you plan to apply for a Mortgage Loan but are ineligible, you can apply for a Joint Loan. This allows two or more individuals to jointly apply for a Home Loan. This Loan is great for people looking to enhance their Loan eligibility and help share the repayment burden.

Conclusion

Each Mortgage Loan has its own terms, eligibility criteria, and interest rates offered by various financial institutions in India. Borrowers should carefully assess their requirements and financial capabilities before choosing the most suitable Mortgage Loan option.