Understand About Types of Mortgage Loans
Jun 12, 2025 | 4 mins read
A mortgage loan is a type of secured loan where you pledge an immovable asset, usually a house, flat, land, or commercial property, as collateral to borrow money. It is commonly referred to as a Loan Against Property. You continue to own and use the property, but the lender holds legal rights until you repay the entire loan with interest.
This kind of loan is often used for business needs, funding education, managing medical costs, or consolidating debt. Since the loan is secured, the mortgage loan interest rates are generally lower compared to unsecured loans.
Your EMI depends on three main inputs: loan amount, interest rate, and repayment tenure. A longer tenure means lower EMI but higher total interest paid, while a shorter tenure has higher EMIs but reduces your interest burden.
Use the mortgage loan EMI calculator to plan your repayments smartly.
Example:
Loan amount: ₹ 25,00,000
Interest rate: 10% per annum
Tenure: 10 years
EMI: ₹ 33,038 (approx.)
You can also estimate using a mortgage loan repayment calculator to see how early repayments or pre-closures can reduce your cost.
| Type | Criteria |
|---|---|
| Residency | Indian resident |
| Age requirement | Salaried: 23 years to 70 years Self-employed: 25 years to 70 years |
| Profession | Salaried / self-employed professionals and non-professionals |
| Other: | Can be increased by adding co-applicant income or other verifiable income sources |
| Document Type | Required Document & Checks |
|---|---|
| Age Proof | Aadhaar Card | PAN Card | Passport |
| Address Proof | Utility bills (not older than 2 months) | Aadhaar Card | Driving License | Passport | Voter ID etc |
| Photo ID Proof | PAN and any one of the following- Aadhaar Card| Driving License | Passport | Voter ID | Job card by NREGA | Letter issued by the National Population Register containing details of name and address |
| Income Proof | Income proofs vary for different professionals across salaried, non-salaried and self-employed. |
Please find the easy detailed list of required documents here
| Type | Document |
|---|---|
| Salaried | i. Salary slips for the last 3 months ii. Bank statements for 1 year iii. Latest Form 16 |
| Self Employed: Professionals | i. Latest two ITRs (personal and business) with computation of income ii. Advance tax challans (if available) iii. Latest two years of P&L accounts and balance sheets (with schedules), certified by a CA (both personal and business) iv. Bank account statements (current and savings accounts) for the last 1 year v. Qualification Proof of professionals |
| Self Employed: Non-Professionals | i. Latest 2 years ITRs with computation for individual applicants and co-applicants (if borrower is an individual) ii. Bank account statements (current and savings accounts) for the last 1 year iii. Latest 2 years of audited/CA-certified profit & loss accounts and balance sheets of the firm/company (if borrower is a firm/company) iv. Proof of Business (GST / Shop Establishment/Udayam Aadhar, etc.) v. MOA & AOA & Certificate of Incorporation vi. For Partnership Firm-Partnership Deed |
Other documents to be provided as required for disbursement of Loan
List of all fees and charges for Loan Against Property
| Type | Interest Rate and Charges |
|---|---|
| Processing Fees / Documentation Charges: | Up to 3% of sanctioned amount + applicable taxes (this is inclusive of Login Fee) |
| Login Fees: | Up to ₹ 5000 (inclusive of applicable taxes) (non-refundable) |
| EMI Dishonour/Bounce Charge* *A bounce charge is a charge for (i) dishonour of any repayment instrument; or (ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate | As shown in the table below |
| Loan sanction amount (in INR) | Charges in (in INR) |
| < ₹ 5 Lakh | ₹ 500 |
| ₹ 5 Lakh - ₹ 50 Lakh | ₹ 1000 |
| > ₹ 50 Lakh – ₹ 2 Crore | ₹ 1500 |
| > ₹ 2 Crore | ₹ 2000 |
| Late Payment Charges (LPC)/ Penal Charges: | 2% per month on overdue EMI + applicable taxes |
| *LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023 | |
| *Taxes applicable on LPC w.e.f. 1st Apr 2024 | |
| Annual Maintenance Charges (applicable only for Dropline Overdraft and Hybrid Overdraft): | Up to 0.25% + GST of Dropline Limit available at start of each year (i.e. first on 13th Month and then every anniversary thereon) |
| Duplicate NOC Charges: | First 3 paper copies - free of cost |
| ₹ 250/- + applicable taxes | |
| Repayment Swap charges (per swap): | ₹500 + applicable taxes (applicable only for branch walk-ins) |
| Charges for documents like Statement of Account/ Repayment Schedule /Foreclosure Letter & Welcome Kit: | Physical copy at a charge of Rs.500/- + GST per statement/ |
| Valuation Charges: | As per actuals |
| Documentation Charges: | As per actuals |
| Cash Pickup Charges: | Nil |
| Interest Rate Conversion Charge: | Up to 0.5% on Balance Loan Amt + applicable taxes (or) Minimum Rs.10,000/– whichever is higher |
| List of documents: | ₹ 300/ – +applicable taxes |
| Providing photo copies of the documents (property & others): | ₹ 500/ – +applicable taxes of the documents (property & others) |
| Charges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002: | Issue of Loan Recall Notice = ₹ 500/ – |
| Issue of Demand Notice = ₹ 1,000/ – | |
| Issue of Possession Notice = ₹ 2,000/ – | |
| Applying District Magistrate Order = ₹ 8,000/ – | |
| Taking Physical possession = ₹ 20,000/ – | |
| Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice/ Publication Demand Notice/Publication of Sale cum Auction Notice | |
| Legal / Recovery Charges (Other than pertaining to SARFAESI): | As per actuals |
| Loan Cancellation Charges: | ₹ 5000/ – + applicable taxes |
| Recovery of proportionate actual expenses from disbursement date(s), from individual borrower(s): | LAP – Up to 1% of total disbursed loan amount + applicable taxes in case of closure within 24 months |
| Foreclosure / Full Prepayment Charges: | For Individual / Non-Individual Borrowers – |
| Floating Rate – Nil Charge | |
| Nil Charges where end use is not for business /commercial purpose For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on principal outstanding + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% principal outstanding + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on principal outstanding + applicable taxes | |
| Pre-payment Charges – Loan Against Property: | Floating Rate – |
| Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Partial/ Prepayment amount + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Pre-payment amount + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial /Pre-payment amount + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Partial/Prepayment + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Partial/Prepayment amount + applicable taxes | |
| Foreclosure / Full Prepayment Charges – for Dropline Overdraft / Hybrid Overdraft | Floating Rate – |
| Nil Charges where end use is not for business/commercial purpose. For cases where end use is for business/commercial purpose | |
| i. Less than 1 year from disbursement – up to 3% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 2% on Dropline Limit + applicable taxes | |
| Fixed Rate – | |
| i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| For Non – Individual Borrowers – (Applicant/Co – applicant) | |
| Fixed/Floating rate loan – | |
| i. Less than 1 year from disbursement – up to 4% on Dropline Limit + applicable taxes | |
| ii. Post 1 year of disbursement – up to 3% on Dropline Limit + applicable taxes | |
| Switch Charges (Switch from floating interest rate to a fixed interest rate): | Up to 1% on principal outstanding loan amount + applicable taxes (or) minimum Rs.10,000/– whichever is higher |
| Non-Compliance Charges: | Up to 1% p.a. of principal outstanding loan amount + applicable taxes |
| Breakup between Principal & Interest: | As per Repayment Schedule |
| Example of SMA/ NPA classification: | More particularly mentioned under “Classification of Assets” under the head “Miscellaneous” |
*Terms & Conditions Apply. All actual charges will be as per Key Fact Statement (KFS) shared by the company.
Apply for Loan Against Property with these steps
1. Apply Online in Minutes:
Click on "Apply Now" and fill in the form with your personal details and other relevant information
2. Connect with our representative
Our representative will contact you with the details of the loan offer and collect your documents
3. Eligibility and Document check
Your eligibility will be checked and documents will be verified before processing the loan
4. Configure your mode of repayments
You can select your repayment mode and set up a convenient EMI payment schedule
5. Get Loan Disbursement:
Receive the loan amount directly into your account, ensuring convenient and smooth access to funds
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